I just want to know, that can you make 5k-10k per month in F&O segment with a capital of just Rs. 1 Lakh?
The pedantic answer would be… that depends. How much experience you have trading derivatives. An experienced trader could surely make that and more with a 1L account whereas as a newbie would be lucky to not lose that much in the same time.
Can it be done? Yes. Likely ? Not at all. But if you are new to it, use that 1L as a learning account. Like the price you are ready to put up to learn the craft. Learn strategies where you won’t lose much if you don’t win. Never trade Naked positions, Improve the craft, Learn the markets through Varsity, Learnapp, books etc.
Don’t keep a number in your head, just pick up the skills. Once you experienced, increase the account size a bit.
Derivatives are a very rewarding and fun segment, so long as you put your all in it. Though it will happily take all your money if you don’t
I’d say it is very unlikely. With a 1 lac account, you can only buy options so you’ll have to get both your direction and timing right. You can use hedged positions but aiming to make 60% - 120% on any account size is quite difficult.
Yes! Of course if your buying options but not incase if your selling options.
And You can get margin benefit if you BUY OTM option with selling
Curious, just curious…
5K per month (if this is doable) is equal to 60K per year. This means on a capital of 1 lacks, the rate of return is minimum 60% pa. My question is
Is it fair to expect a return of 60% pa. Which investment in the world will give a return of 60%. If the rate of return was so high, would not the hard coded, super traders would be making money left right and center…but I never found a trader to be the richest women/man in the world. Why? Am I missing a point here.
Unbelievable this Trading business…
Yes, it is enough. But…
- You can’t sell options.(index and stock)
- You can only be the buyer.
- You can sell currency options though.
And I don’t agree with 5 - 10 k per month.
It’s not possible to be that consistent in options with less capital (also with large capital ).
It takes years of experience to master options.
The ROI would be around 60 to 120 % if you make 5 to 10k per month which even big institutions and experienced stock market participants struggle to achieve.
“Always have a very less expectation from the market”
With your return expectations you should also know the risk associated with it. If you are expectations 5 percent return per month it equals 79.5 percent on annualised basis considering monthly compounding.
I always believe when you target a return you should be ready to even forgo the same percent of your capital.
So are you ready to forgo 80 percent of your capital?
Again a lot depends on your risk management skills.
It’s very unlikely that you will be able to achieve your target returns consistently over a period of time.
I firmly believe, unless one has at least 10lakhs and adequate knowledge about options he shouldn’t get into this. Options are the most complicated product out in the market.
No. Unless ofcourse if you are an outlier.