Creating wealth with 25000...impossible?? No...possible
- Thread starter Optimist
- Start date
5 lots of nifty at any point in the day. Considering Nifty at 4000,
that amounts to 5*4000*50*1/10=1,00,000.[50 is lot size,1/10 is
the margin held by the broker.]Considering 220 days in year ,the
amount totals to 220 lakhs ,in margin or 2.2 Crores in margin or
220 crores in total Turnover.
Am I right with my math?
that amounts to 5*4000*50*1/10=1,00,000.[50 is lot size,1/10 is
the margin held by the broker.]Considering 220 days in year ,the
amount totals to 220 lakhs ,in margin or 2.2 Crores in margin or
220 crores in total Turnover.
Am I right with my math?
DA
I joined this forum in March and since than first time I am seeing you appreciating some wrong thing .
If a trader is trading with such a stop loss that 75 % of capital is swiped off then he must be warned as a younger brother like , Look brother this is not the correct way . Stock market is like a Python if you do not try to come out wrong situation early than this python will cover you completely.
I am saying all this because this is what i have leaned from you only since March
Please forgive me If i misinterpreted your post
Devan
I joined this forum in March and since than first time I am seeing you appreciating some wrong thing .
If a trader is trading with such a stop loss that 75 % of capital is swiped off then he must be warned as a younger brother like , Look brother this is not the correct way . Stock market is like a Python if you do not try to come out wrong situation early than this python will cover you completely.
I am saying all this because this is what i have leaned from you only since March
Please forgive me If i misinterpreted your post
Devan
There were no strike prices at 3300 or below, in puts or calls for quite some time. Even more amazing is the fact that very few seem to have noticed it.
No matter what the NSE believes, ATM and OTM strikes must be made available on either side.
Would love to know the real reason for the lack of lower strikes.
No matter what the NSE believes, ATM and OTM strikes must be made available on either side.
Would love to know the real reason for the lack of lower strikes.
My question was not on turnover, rather how much capital one can profitably deploy (while maintaining ones current ROI) over a period which is ones normal trading timeframe (single day for intraday trader, 3-5 days for swing trader).
The answer to that question in your case is 1lk.
But supposing you had 10crs at your disposal Would you be able to deploy it the same way (or perhaps ina different way - through multiple securities for e.g. - assuming you could still manage your trades) you deploy your 1lk today? If so, would your ROI still be the same??
And what if the amount was 100 Crs??
Regards
The answer to that question in your case is 1lk.
But supposing you had 10crs at your disposal Would you be able to deploy it the same way (or perhaps ina different way - through multiple securities for e.g. - assuming you could still manage your trades) you deploy your 1lk today? If so, would your ROI still be the same??
And what if the amount was 100 Crs??
Regards
In case of a Day trader the question of MTM does not come into picture.But in case of swing trading MTM comes into picture.It is better to to have 20%~25% set apart for MTM purposes.
That means 8 crores can be deployed for futures alone and rest of the money can be set free or buy securities for 2 crores which may have to be sold in case there is a shortfall in MTM.
U
Every Trader Dreams,i also do,Rs 100 Crs !!! at my disposal is infact a dream.
Many may term this Dreaminig to be unpractical,the only thing that always Awed me is the Terrorist's dedication & focus.They cant do it without Dreaming.
Kalyan the impact of putting even a 10 Cr (margin money) order on the most liquid Nifty Fut,having very less impact cost,will still not give me the fill in my desired Price.
That is the precise reason why these Smart Monies RUN our Stops,to get their Fill.
That is why they Buy in Downtrend & Sell in Uptrend.
Arbitragging can take care of few 100 crores.
A swing trade in Nifty Derivatives has some inherent other inbuilt Risk (which you will understand,like interest rates fluctuation in the series,sudden downgrade in Ratings,etc)
so to mitigate that some more counter trades,
even to keep the Delta Neutral constant every day some more trades,
so it boils down to few counter trades ,which will eventually be shot at one go and by which my Profit percentage may come down but more or less assured monthly return,thats why these guys gives so importance of Over Performing Index.
Many may term this Dreaminig to be unpractical,the only thing that always Awed me is the Terrorist's dedication & focus.They cant do it without Dreaming.
Kalyan the impact of putting even a 10 Cr (margin money) order on the most liquid Nifty Fut,having very less impact cost,will still not give me the fill in my desired Price.
That is the precise reason why these Smart Monies RUN our Stops,to get their Fill.
That is why they Buy in Downtrend & Sell in Uptrend.
Arbitragging can take care of few 100 crores.
A swing trade in Nifty Derivatives has some inherent other inbuilt Risk (which you will understand,like interest rates fluctuation in the series,sudden downgrade in Ratings,etc)
so to mitigate that some more counter trades,
even to keep the Delta Neutral constant every day some more trades,
so it boils down to few counter trades ,which will eventually be shot at one go and by which my Profit percentage may come down but more or less assured monthly return,thats why these guys gives so importance of Over Performing Index.
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