Lets double the money in 40 trades

[Somanjana_C]

That just makes him a reckless trader. Just one news item during mkt hrs can put an end to his trading in a maximum of 2 minutes. Is that risk worth taking?

Even if he doubles his money in 40 trades in about a month, looking at the number of trades per day....... he may do it for a few months, but price shocks have a tendency of catching up with people who use heavy leverage.

That's where smart money management (read timely ADDS) comes in... he uses dual timeframe to trade direction of the trend... and he respects the uncertainty, hence sl is in place all the time... He trades intraday and doesnt carry positions so over night sentiment changers don't affect him.

besides effect of live news is normally always in the direction of trend, worst case scenario, his sl gets taken out... big deal....! he is not promising 40 positive trades in a row... just 10% profit on underlying in 40 trades... why the disbelief in his ability...?

 

[bthakwani]

why are u so surprised that a good trader can double his money in 40 trades using leverage of 1 : 10 ?

Just think logically... one needs 1 L to take position worth 10 L, he needs to make a profit of 10% in 40 trades to make it 11 L, effectively doubling his money... from 1 L to 2 L....

now think... 26% profit in 9 trades... is basically 2.6 % profit in 9 trades... appreciate the fact that leverage is a double edged sword and that makes him a damn good trader....!

are u suggesting its easy..? have u ever tried..?

 

[Somanjana_C]

are u suggesting its easy..? have u ever tried..?

Yes...! in fact if one does with options, u wont need more that 4 trades to double your money...! that's what leverage can do...!

 

[bthakwani]

are u suggesting its easy..? have u ever tried..?

u thanked me for that post... well i didnt make myself clear then...

"10% in 40 trades" when u make it sound as simple as that it feels good... BUT IT ISNT...

"Worst case scenario his stop loss gets hit" u must understand that if he is trading at full leverage... his stop loss also is apparently 10 times of what it seems... so if he loses half a percent in a trade he actually loses 5% of his capital... and thats a lot...


he has mentioned in his earlier posts that he is risking 1-2 % in every trade... and that being the case im quite sure he is not trading 10 times his capital...

even i have tried this "10 % in 40 trades" thing a couple of times... and i have had to stop in between...

 

[Subhadip]

Yes...! in fact if one does with options, u wont need more that 4 trades to double your money...! that's what leverage can do...!

My view to all please stick to futures till u have made atleast double ur own money...till u know the sword how to use it

 

[SavantGarde]

Folks,

Futures & Options (Derivatives) are as it is Leveraged products by virtue of the product design....

If the Total Margin requirement is 10%, then it automatically becomes 10 times leverage.

...but there is a vast difference in the margin trading as offered by brokers in equities.... which is riddled with all sorts of conditions.... including the stupidest that I have seen where it will get squared off by the sytsem after 3.00 or whatever time limit is set by the Broker before the market closes.... only a very very seasoned trader can navigate those terms laid down by brokers successfully.

SG

 

[bthakwani]

Yes...! in fact if one does with options, u wont need more that 4 trades to double your money...! that's what leverage can do...!

hmm... it sounds exciting... im thinking ill i take a crore... or rather borrow a crore from my dad for a week... ill trade in options... make 2 out of 1... and then return his 1 crore...


no offence... but i have fallen for "the wonders of leverage" before... and so im not buying it...


u think doubling money in 40 trades is like rice-plate eating... no... never... not... doubling money not a childrens play... it is a undertaker play... taj mahal create...

 

[columbus]

My view to all please stick to futures till u have made atleast double ur own money...till u knpw the sword hpw to use it

I second you.I like index futures rathe than stock futures.

 

[Smart_trade]

My view to all please stick to futures till u have made atleast double ur own money...till u knpw the sword hpw to use it

Your 3rd trade in bank Nifty fut on Friday.....your entry in a long trade was at 10610 ....I don't know where your stoploss was but probably it must have been at 10580 or 10585 .Thus trading 4 contracts expose yourself to the risk of 2.5 to 3 % of your capital of Rs 1.00 Lakh and your money management and position sizing gets a little stretched.

Kindly elaborate on this max risk taken in any trade point...

If Fridays trades are on larger capital base of your own account then no issues.....

Smart_trade

 

[SavantGarde]

Hi Thakwani,

It is easy if you have a system to trade...

You mentioned somewhere in your earlier post.... 1-2% risk used by r1989...
Let me tell you if r1989 is up by 1 lac which would amount to 50% of the initial capital... balance 50% can be achieved more quickly.....

Another thing... don't confuse Futures & Options Trading to Equity trading with broker margin....

SG

hmm... it sounds exciting... im thinking ill i take a crore... or rather borrow a crore from my dad for a week... ill trade in options... make 2 out of 1... and then return his 1 crore...


no offence... but i have fallen for "the wonders of leverage" before... and so im not buying it...


u think doubling money in 40 trades is like rice-plate eating... no... never... not... doubling money not a childrens play... it is a undertaker play... taj mahal create...