hey, i started trading in 2022 and i mainly do in options BN I hve done some excellent trades where i have made 30K profit with 30K capital that was 100% returns on a single day and this was on 2023 i was hooked up from then and i do trade every now and then but i could only put less capital that is less than one lakh some times 10K.
i would like to do this from now on so is it a good idea to start a new company. if so, then how to go about it. and what are the pros and cons.?
the main reason would be to get huge funds from loans or investors.
thanks
Really bad idea
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The worst you can think.
Trading with 10K or 1 Lakh is far easier compared to trading with large capital.
Also, pressure of paying loans and giving returns to investors will give you losses. That will push you towards more loans and depression.
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That is luck with gamble, luck doesnât work everytime. You can not handle big capital that way.
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Not at all. Use your own funds, no matter how small it is.
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do you have an actual strategy? like something you can write down and backtest?
or do you trade based on âfeelâ? I assure you your âfeelâ will change dramatically once you take other peoples money or loans.
I suggest read a few books, learn how to draw payoff diagrams, learn how to hedge properly with options, finish Zerodha varsity, then trade with your own money for a while.
If you have years of continuous success trading your own money then at that time you can think of expanding. I suggest you read The Front Office by Tom Costello.
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Before taking Loan / Investment,
Few questions to ask yourself,
1.Have you made 100% returns consistently for at least 3-5 years?
2. Do you have Backtested strategy to make consistent returns & Whatâs about Drawdown?
3. Handling funds of 30k, 30 Lacs, 30 crore , 300 crore maybe more⌠Is it same?
4. Do you have emotional & psychological bandwidth to handle over 40% Drawdown phase?
If your answer is NO. Use your own funds & grow from there. Read this .
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not at all that was a pure study and even thou a telegram group who were telling to
long PUT I went with CALL and set a target it took 1-2 hrs to reach the target but it did.
i bought" 10 AUG BN 44600 CALL 04 AUG 2023 FOR 313.2/- 135 qty. 10:17am "
and sold it for 519.9 11:20 MY PL was 27,897/- and 27738.30 net PL
yes
i dont think so, my strategy is very tough to follow and it took me years with much foucs to be able to implement it.
i can handle any amount because i only see the percentage and not the amount which can be intimidating as you are saying. yes its a tough and stressful task no one can deny.
and in bank nifty no one can make profit with a guess its 100% true you have to be sure AF.
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- yes im in profit as of now.its only been less than 3 years
- the returns are not consistent obviously as my capitals keeps on changing due to not maintaing a fixed capital its like geeting an opportunity and investing sum amount and making profit or loss. i hope you got the point. my trades are intraday and 7-14 days a month thats it.
- as far as i know the amount should not matter.30K or 300K the more the better.
- any bussiness can go wrong we select our work according to our potential otherwise the faliure is inevitable .
i hope you will answer my question now.
You are here for confirmation and not really for advise
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He just wants us to agree with him.
So let me be the first one to encourage him.
Yes. Itâs an excellent idea. Borrow max amount from everybody possible and trade. 
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Amount does matter. Brother, psychology changes with respect to the amount. Your views are showing that you are novice in this field.
And if that BIG capital belongs to others and you have to give them returns, you are going to fail.
I may sound blunt to you but itâs truth.
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oh I see I didnât directly answer what you asked. I did tell you to read Costelloâs book which is good info for people opening up a new shop.
It sounds like youâre banking on the âprestigeâ of âstarting a companyâ to raise funds. Thats not how it works.
Banks are very unlikely to give you loans unless you pledge some collateral.
Investors are unlikely to give you funds without prior experience managing âhuge fundsâ and other due diligence.
Your friends and relatives may probably agree to lend you money, but that is just plainly a bad idea.
It sounds like what you are actually looking for are prop shops (proprietary trading firms) - these are places where you have a buy in (5 lakh?) then you get âmassiveâ funds and also massive leverage. They usually have robust risk management so if you lose more than your buy in then you get kicked out. I donât know a lot about such places other than they exist. I also donât know about the legality/regulation surrounding them so do your own research.
If youâre interested, my thoughts on âwhen to open a companyâ mostly revolve around taxation. A company has FLAT 22-25% tax on net profits whereas there are various tax slabs for an individual. Comparing the two tax structures, it only makes sense to open a company to trade if you already have over 50L in annual net profits in your individual account.
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let me âclear the airâ the topic is very badly diverted to " trading with borrowed money"
but the topic is to âstart a trading company & how to go about itâ the money & Pnl success / faliure is secondary here.
let me assure you guys i will trade with my own money. please dont worry.
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You canât incorporate a private limited company having object clause as âtrading in financial instrumentsâ
Itâs not allowed unless you have a nbfc license.
Now you tell others are doing it. Either itâs their secondary objective or itâs illegal.
Hope this clarifies your doubt.
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Very likely the âmisunderstandingâ happened as it was claimed to be the main-reason in the original post.
Thatâs a relief! 
So, now the remaining challenge is to (as Jason and Balaji pointed out above)
- either qualify for an NBFC license and apply for it.
- or to find a trading-adjacent activity that results in
such trading activity being a justified secondary objective of the company.
So its illegal you say? ok
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yes the reason for âincorporationâ was for the âHugeâ 
funds. and the question was to âhow to incorporate a options trading cumpennyâ.
