General Trading Chat

[Subhadip]

Let me tell you few facts.I am in this business for very long time and every year I come across 3-4 Market wizards who tell me that they manage other people's accounts and give them 7-10 % per month either in futures or commodities.Such wizards grow in bull market mainly.....if anyone can make that return on large capital do you think that guy will have time and need to talk to us ?? Entire Wall Street and hedge funds will stand in line in front of his house to hire him with a billion dollar package.

Some of my friends lost 3-5 Lakhs inspite of telling them the facts.These guys take huge leverage and pay 7% per month,not necessarily out of profits but sometimes drawing out of capital and eventually they get stuck up in a bad trade and loose the capital.....then they will ask to top up the account for recovering the loss....throwing good money after bad.....One guy who comes on TV manages funds and my friend lost 5 lacs as he was treading 2000-2500 nifty on Rs 5 Lakhs capital .

No one can make such returns consistently for many years,if he can, he will have his own funds in few Cr of his own capital and he will be the wealthiest person in the country in less than 10 years.

Mostly it is a con game and chances of success are very thin.If this return was possible,Bajaj Auto will not take troubles of making and selling motor cycles ,they will hire few such guys and make hundreds of crores....

Smart_trade

But sir 2% per month is easily get able, with big money in option....

Now 2% per month means....24% per year..

Very rarely many does more than that in big capital..

 

[Singhraja]

St sir I am bit disagree see there are many people who lost initially due to unawareness or xyz reason but they try to recover money as they lost the
Large part of family income but they are passionate to learn and earn from market now they are putting effort on basis of skill and learning which they acquired over a period of years now due to low capital or none they can't implement their system. There may be genuine people who need money initially as they know they will make once they got sufficient opportunity. But there are in dilemma as family is not supporting and but they want to explore their caliber in that situation what they can do they need capital from clients. But don't take them negatively

 

[Singhraja]

Some of good trader destroyed their career due to initial mistakes which they realised later

 

[vivektrader]

I think first and foremost rule regarding capital (for trading) is that, it should be one's own, and that too not from one's family's Silver. One should be able to live in case he loses it.
Otherwise one may have to sell his house to pay for others' money or land up in prison.


Vivek

 

[Smart_trade]

St sir I am bit disagree see there are many people who lost initially due to unawareness or xyz reason but they try to recover money as they lost the
Large part of family income but they are passionate to learn and earn from market now they are putting effort on basis of skill and learning which they acquired over a period of years now due to low capital or none they can't implement their system. There may be genuine people who need money initially as they know they will make once they got sufficient opportunity. But there are in dilemma as family is not supporting and but they want to explore their caliber in that situation what they can do they need capital from clients. But don't take them negatively

Every loser after losing his capital thinks that now he is wiser and he has a great system and be very profitable if he gets capital to trade his system....he could not make money with his own capital so what is the guarantee that he will make money with others' capital ? Trading profitably takes lots of time and he now he starts experimenting with others' moneyHe should make money consistently first for 1 year with no erratic drawdown before even he can think of other's money....

But if people are ready to give money to a trader and a trader promises large returns every month,who am I to object to it.....let the party continue

Someone asked my views and I shared my experience.

ST

 

[vas2009]

Let me tell you few facts.I am in this business for very long time and every year I come across 3-4 Market wizards who tell me that they manage other people's accounts and give them 7-10 % per month either in futures or commodities.Such wizards grow in bull market mainly.....if anyone can make that return on large capital do you think that guy will have time and need to talk to us ?? Entire Wall Street and hedge funds will stand in line in front of his house to hire him with a billion dollar package.

Some of my friends lost 3-5 Lakhs inspite of telling them the facts.These guys take huge leverage and pay 7% per month,not necessarily out of profits but sometimes drawing out of capital and eventually they get stuck up in a bad trade and loose the capital.....then they will ask to top up the account for recovering the loss....throwing good money after bad.....One guy who comes on TV manages funds and my friend lost 5 lacs as he was treading 2000-2500 nifty on Rs 5 Lakhs capital .

No one can make such returns consistently for many years,if he can, he will have his own funds in few Cr of his own capital and he will be the wealthiest person in the country in less than 10 years.

Mostly it is a con game and chances of success are very thin.If this return was possible,Bajaj Auto will not take troubles of making and selling motor cycles ,they will hire few such guys and make hundreds of crores....

Smart_trade

Thanks for the practical based inputs.The same leads to a question for which you alone are rightly qualified to answer.What should be the practical and doable rate of return based on RR for large capital.(Large capital will be >25 lacs or so).Or if a trader needs 2 lacs a month for expenses what should be his trading capiial.

 

[Singhraja]

There is no holy Grail..it's about money management discipline patience....

 

[Singhraja]

Sir correct me if I am wrong but we need seed capital for every business same is with trading you can't trade with one lot it's nothing but time pass

 

[Singhraja]

Even if you have skills companies promote you like topstep trader or fund seeder. But here in India no one promote

 

[Smart_trade]

Thanks for the practical based inputs.The same leads to a question for which you alone are rightly qualified to answer.What should be the practical and doable rate of return based on RR for large capital.(Large capital will be >25 lacs or so).Or if a trader needs 2 lacs a month for expenses what should be his trading capiial.

That depends on trader's trading mastery and risk appetite.Someone will make Rs 2 lakh onRs 10 Lakhs or less and someone will ll not be able to make that on Rs 30 L capital also....

In my view if new trader is making 50-60 % per annum on his capital,he is doing well, if he makes 100-150 % he is a doing a good job....above that come masters who have no limits but they don't come dime a dozen.

ST