It depends on the accuracy of your trading system, and the sequence of the number wins versus the number of loss.
See, it depends on various factors like:
Your trading strategy
No. of wins v/s no. of losses.
What you would be trading in - like, Future, Option or Share.
Optimistically, you can earn roughly 5% on the trading capital per month.
50000 investment and 500 rupees (1%) stop loss may not work.
You might touch your stop loss more number of times than you actually make any profits. Most active stocks are cyclic and wavy.
You need to revise your strategy.
In my opinion, at least 4% i.e 2000 rupees may be required to avoid price hitting stop loss. If you get profits above 2000 rupees, move your stop loss there and try to end up always in profit or more profits.
Hi Umesh ,
When you Say 50 K i am considering that you are not going to Take any Kind Of Leverage and Trading Purely with the Money You Have , So to Start with when you Say 1% of SL you are a Normal Trader and not a scalper . Say for example you are currently trading in INFY and 1 % of that is Approx 40Rs quite Good to Trade if you have your tools of trade in proper place , and you can trade only with 12 Shares of INFY in the Amount mentioned by you .
Very Important Points When you Start Trading :-
- Let the Profit Run , suppose you hit on a good trade let it rum because in Trading almost every trader does this mistake we cut the profitable trades Soon and let the Losses Run . would like to Give one Good example here . In Real Life Scenario if you Have 3 Shops out of which two are making Profit and the 1 is making losses you will take a prompt decision and you will close the loss making one and start focusing on the profitable ones closely but in Trading its exactly opposite to this we close our profitable Shop ( Profit Making Trade ) and Let the Loss Making Trade running . This Rule will Solve half of your Problems and almost all Traders will accept this .
- Don't Keep changing the Lot Size Daily Maintain the lot Size for at least a month which will help you to understand your trades properly.
- Unlike Other business here you are your biggest enemy , So before doing anything just ask to yourself are you acting in your own best interest and then proceed .
- An at Last trading is business where it will change you as a person like you will have to be very disciplined and patience then only you will succeed. It is a Total Transformation and Metamorphosis of a person from being Normal human being to the best .
Astro , Excellent advise.