Delivery Calls
- Thread starter Jai.Shewaramani
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Hello all,
I can see that there is much speculation over this topic, and some critism, which is nice too. Before I start explaining this strategy, there are a few things I want to go thru 1st.
THE MOST IMPORTANT THING TO REMEMBER is that this is not a trading system. If you think just using this strategy you will make 91cr in 5 years, then you are mistaken. This is a trading plan, but you yet need a compatible trading strategy to use with this. There are a set of rules, at no point of using this strategy can you break any of the rules. A break of any rule will voilate the system, coz you cannot afford to be indisciplined at all.
Why do I say this you ask? Coz I will explain later on how difficult it gets at the later on stages of this strategy.
Another important thing is the stats of how many people will make it thru this system...
80% of people will quit this system within 3 months
10% of people will quit this system within 6 months
Only 2% will make it thru the first year.
And possibily only 1 in a million will reach the 60th month.
So the bottom line is that this strategy is only for people who are ready to be disciplined and who have a trading system which is effective, and are willing to play by the rules.
It is not important to reach the 60th month to be rich using this system, you can earn consistent gains by following this system and getting thru just 12 months of this system, and if you are stopped out, start all over again and repeat the same process. What this system does is keeps you out of over trading your account, and teaches you the importance of planning and being disciplined.
Tip: Open a new acocunt for this strategy, and stick firmly with the rules to succeed.
RULES
1) You need a trading system that can make Rs. 5,000 consistently every month per 25,000.
2) Opening balance would be 25,000
3) Trade is preferrably done in multiples of 50 shares, you can use leverage if you like.
4) 50 shares is allowed for every 25,000 balance. So if you have 50,000 you can trade 100 shares and if you have 125,000 you can trade 250 shares and so on.
5) Emotions like Greed, fear and Hope have to be barred out.
6) Once you make 5,000 rs. in a particular month, you are not allowed to trade till the month is over. So even if you make 5,000 in 2 days, you cannot trade for the entire month.
7) You have 1 lifeline that you can use during this strategy. i.e. if you fail to reach your target in any particular month by 10%, then you can make it up in the next month. You get this lifeline back if you reach your targets in the next 3 months. For eg. your target in the 6th month is 10,000... you can yet continue if you reach atleast 9,000. But in the next month (7th month) you will have to make up 10,000+1,000. You will also have to reach the targets in the 8th and 9th month to revive your lifeline. If you fail to do this, then you will have to go back all the way to the start and start all over again with 25,000 equity. It's like a snake's and ladder's game. If you are bitten, you use your first aid (this is your life line). If you are bitten again, you go back to the starting line and play all over again.
8) You start this strategy all over again if you lose 40% of your account in any month, if you use your life line and are unable to reach to your target in the next 3 months, or if you break any of the above rules.
You can use leverage if you want. But before you do that, you have set a stop limit for your account. Normally, I suggest that it shouldn't be more than 40% of your account in a month (this is the max limit, but you are welcome to narrow it down if you like). So, initially when you start with 25,000 your stop limit will be 10,000 (40% of your equity). Let's say you get thru 3 months of this plan, your equity will be 40,000. now your stop will be 40% of this i.e. 16,000. So even if you are stopped out, you will yet end up with your initial capital i.e. 24,000 (just a 1,000 less). So once you are successful making 5,000 in the 1st three months, you have a trading plan that is risk free. If you cannot make 5,000 for the 1st three months, then I'm sorry to say that you shouldn't attempt this plan again till you change your approach to trading. Also, plz don't come and tell me that you lost your full 25k using this system, if you have lost more than 10k of your initial capital, then that's your own fault. Also, once you succeed in acheiving your targets in the first 3 months, there is no way you can lose your initial capital with this system (if you did, you will have only yourself to blame). You all have to realise why am I stressing so much on following the rules. That's coz once you cross 24 months, the number of shares that you trade will keep on increasing at the rate of knots, and if you aren't disciplined to follow the rules, then there is no way you can survive in this system.
Many people here will argue that if you have reached your target for a particular month in 2 days, then why should we stop trading in that month, we can try to acheive the next month's target. THIS IS A CLASSICAL MISTAKE. This will make you over confident and make you lose your account in the long run. The basic principle of success is to avoid overtrading, which makes 90% of newbies lose their account within the first 3 months.
Also, many people will twist and turn the rules or ignore them once in a while. Again, this is a mistake. Going back to the start and starting the plan all over again when you have 155,000 in 12 months might sound amuzing to many people. But if you ignore the rules, then I guarantee you that you will not survive to get thru the 60th month. The more you have to go back to the start line, the more perfect you will get with trading this plan.
THE RESULT
After 12 months you will have 155,000
After 24 months you will have 1,300,000
After 36 months you will have 11,505,000
After 48 months you will have 102,480,000
After 60 months you will have 913,650,000
Again, this has not been posted here so you can dream of earning 91cr in 5 years. The main purpose for this post if to explain to you how you can grow 1 step at a time. Many people might say that 5,000 per month is not possible. OK, let's say we agree to that. How about earning 500 per month? Using the same methodology, you would yet make 9cr in 5 years. Let's push aside 500 per month, let's say we target 50 rs. per month. You would yet end up with 91 lakhs in 5 years. But plz remember to lower your initial capital too in respect to your monthly targets.
Also, there will be a time when the number of shares to trade will be too large to handle alone. for eg. in the 48th month you will be trading 170,800 shares. This will probably be too large to monitor alone. But your equity would be 102,480,000. You can probably afford to hire a secretary at this stage.
Plz read the rules and the whole post carefully, and if you have any questions, you are welcome to ask me. I'll be more than happy to answer your queries. Moreover, if anyone has any suggestions or critisim, they are welcome to do so.
Plz see the attachment for the breakup of targets for each month.
Regards,
Jai Shewaramani
I can see that there is much speculation over this topic, and some critism, which is nice too. Before I start explaining this strategy, there are a few things I want to go thru 1st.
THE MOST IMPORTANT THING TO REMEMBER is that this is not a trading system. If you think just using this strategy you will make 91cr in 5 years, then you are mistaken. This is a trading plan, but you yet need a compatible trading strategy to use with this. There are a set of rules, at no point of using this strategy can you break any of the rules. A break of any rule will voilate the system, coz you cannot afford to be indisciplined at all.
Why do I say this you ask? Coz I will explain later on how difficult it gets at the later on stages of this strategy.
Another important thing is the stats of how many people will make it thru this system...
80% of people will quit this system within 3 months
10% of people will quit this system within 6 months
Only 2% will make it thru the first year.
And possibily only 1 in a million will reach the 60th month.
So the bottom line is that this strategy is only for people who are ready to be disciplined and who have a trading system which is effective, and are willing to play by the rules.
It is not important to reach the 60th month to be rich using this system, you can earn consistent gains by following this system and getting thru just 12 months of this system, and if you are stopped out, start all over again and repeat the same process. What this system does is keeps you out of over trading your account, and teaches you the importance of planning and being disciplined.
Tip: Open a new acocunt for this strategy, and stick firmly with the rules to succeed.
RULES
1) You need a trading system that can make Rs. 5,000 consistently every month per 25,000.
2) Opening balance would be 25,000
3) Trade is preferrably done in multiples of 50 shares, you can use leverage if you like.
4) 50 shares is allowed for every 25,000 balance. So if you have 50,000 you can trade 100 shares and if you have 125,000 you can trade 250 shares and so on.
5) Emotions like Greed, fear and Hope have to be barred out.
6) Once you make 5,000 rs. in a particular month, you are not allowed to trade till the month is over. So even if you make 5,000 in 2 days, you cannot trade for the entire month.
7) You have 1 lifeline that you can use during this strategy. i.e. if you fail to reach your target in any particular month by 10%, then you can make it up in the next month. You get this lifeline back if you reach your targets in the next 3 months. For eg. your target in the 6th month is 10,000... you can yet continue if you reach atleast 9,000. But in the next month (7th month) you will have to make up 10,000+1,000. You will also have to reach the targets in the 8th and 9th month to revive your lifeline. If you fail to do this, then you will have to go back all the way to the start and start all over again with 25,000 equity. It's like a snake's and ladder's game. If you are bitten, you use your first aid (this is your life line). If you are bitten again, you go back to the starting line and play all over again.
8) You start this strategy all over again if you lose 40% of your account in any month, if you use your life line and are unable to reach to your target in the next 3 months, or if you break any of the above rules.
You can use leverage if you want. But before you do that, you have set a stop limit for your account. Normally, I suggest that it shouldn't be more than 40% of your account in a month (this is the max limit, but you are welcome to narrow it down if you like). So, initially when you start with 25,000 your stop limit will be 10,000 (40% of your equity). Let's say you get thru 3 months of this plan, your equity will be 40,000. now your stop will be 40% of this i.e. 16,000. So even if you are stopped out, you will yet end up with your initial capital i.e. 24,000 (just a 1,000 less). So once you are successful making 5,000 in the 1st three months, you have a trading plan that is risk free. If you cannot make 5,000 for the 1st three months, then I'm sorry to say that you shouldn't attempt this plan again till you change your approach to trading. Also, plz don't come and tell me that you lost your full 25k using this system, if you have lost more than 10k of your initial capital, then that's your own fault. Also, once you succeed in acheiving your targets in the first 3 months, there is no way you can lose your initial capital with this system (if you did, you will have only yourself to blame). You all have to realise why am I stressing so much on following the rules. That's coz once you cross 24 months, the number of shares that you trade will keep on increasing at the rate of knots, and if you aren't disciplined to follow the rules, then there is no way you can survive in this system.
Many people here will argue that if you have reached your target for a particular month in 2 days, then why should we stop trading in that month, we can try to acheive the next month's target. THIS IS A CLASSICAL MISTAKE. This will make you over confident and make you lose your account in the long run. The basic principle of success is to avoid overtrading, which makes 90% of newbies lose their account within the first 3 months.
Also, many people will twist and turn the rules or ignore them once in a while. Again, this is a mistake. Going back to the start and starting the plan all over again when you have 155,000 in 12 months might sound amuzing to many people. But if you ignore the rules, then I guarantee you that you will not survive to get thru the 60th month. The more you have to go back to the start line, the more perfect you will get with trading this plan.
THE RESULT
After 12 months you will have 155,000
After 24 months you will have 1,300,000
After 36 months you will have 11,505,000
After 48 months you will have 102,480,000
After 60 months you will have 913,650,000
Again, this has not been posted here so you can dream of earning 91cr in 5 years. The main purpose for this post if to explain to you how you can grow 1 step at a time. Many people might say that 5,000 per month is not possible. OK, let's say we agree to that. How about earning 500 per month? Using the same methodology, you would yet make 9cr in 5 years. Let's push aside 500 per month, let's say we target 50 rs. per month. You would yet end up with 91 lakhs in 5 years. But plz remember to lower your initial capital too in respect to your monthly targets.
Also, there will be a time when the number of shares to trade will be too large to handle alone. for eg. in the 48th month you will be trading 170,800 shares. This will probably be too large to monitor alone. But your equity would be 102,480,000. You can probably afford to hire a secretary at this stage.
Plz read the rules and the whole post carefully, and if you have any questions, you are welcome to ask me. I'll be more than happy to answer your queries. Moreover, if anyone has any suggestions or critisim, they are welcome to do so.
Plz see the attachment for the breakup of targets for each month.
Regards,
Jai Shewaramani
Hi jai,
Great work and nice planning to grow capital step by step.
All more it needs is a well equipped trading plan with proper riskmanagemenst and discipline trading day in day out.
As you are aware i am trading in forex markets, but this has attracted me towards eqiuty markets , will definitely like to give it a try.
BEfore i start , there is lot of homework for me to do, like from where do i get get good chartings and all that.
I have installed amibrokewr in my system but i do not know how to get live data in amibroker.
I am using metatrader for TA in forex, if there is any way that metatrader can be used for TA in indian financial markets, please let me know.
With warm Regards
Dilip
Hi jai,
Great work and nice planning to grow capital step by step.
All more it needs is a well equipped trading plan with proper riskmanagemenst and discipline trading day in day out.
As you are aware i am trading in forex markets, but this has attracted me towards eqiuty markets , will definitely like to give it a try.
BEfore i start , there is lot of homework for me to do, like from where do i get get good chartings and all that.
I have installed amibrokewr in my system but i do not know how to get live data in amibroker.
I am using metatrader for TA in forex, if there is any way that metatrader can be used for TA in indian financial markets, please let me know.
With warm Regards
Dilip
Great work and nice planning to grow capital step by step.
All more it needs is a well equipped trading plan with proper riskmanagemenst and discipline trading day in day out.
As you are aware i am trading in forex markets, but this has attracted me towards eqiuty markets , will definitely like to give it a try.
BEfore i start , there is lot of homework for me to do, like from where do i get get good chartings and all that.
I have installed amibrokewr in my system but i do not know how to get live data in amibroker.
I am using metatrader for TA in forex, if there is any way that metatrader can be used for TA in indian financial markets, please let me know.
With warm Regards
Dilip
I'm not sure how to get live data for amibroker, but if you want EOD data, then try Incrediblecharts, FCharts, Worldstockcharts or Fibotrader for free EOd charts. For paid service, try SpidersoftwareIndia
I guess there are a few companies providing Metastock as well, I'm not sure which of them do,try to google them.
Hope this helps,
Jai
P.S. I've been trading forex using metatrader too since quite a few years, but I haven't come across a charting platform as efficient as Metatrader for Nifty/Sensex.
Though there ws some weekness in Both Sensex & Nifty, but later houres market may be signals some positive. Sensex may take final support at 13932-13941. Before that it may test 14042-14059 level. Resistance is 14316.
For Nifty Support levels are 4036, 4009, 3993 and may be fall in Resistance at 4089, 4135.
Dr Reddy's Lab (NSE Code: DRREDDYEQ & BSE Code: 500124) Look's good for Short to Mid Term bet. Levels are S1- 718.9, S2- 714, SL- 703; Immediate - 736, T1- 757, T2- 787, T3- 805.
Have a Good Trading.
For Nifty Support levels are 4036, 4009, 3993 and may be fall in Resistance at 4089, 4135.
Dr Reddy's Lab (NSE Code: DRREDDYEQ & BSE Code: 500124) Look's good for Short to Mid Term bet. Levels are S1- 718.9, S2- 714, SL- 703; Immediate - 736, T1- 757, T2- 787, T3- 805.
Have a Good Trading.
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