Lets double the money in 40 trades

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Subhadip

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manish9300

Well-Known Member
please do not mislead

if you do not know then why say something

one can double money in 40 trades with 50% winning and 50% loosing, if the risk taken is 2% of existing capital.
provided at the time of winning you are gaining 2R,where risk was 1 R
what if the risk taken is 1% and 4% respectively? how many trades required to double the money :)??also how risky is 4 % risk ??:)
 

Subhadip

Well-Known Member
what if the risk taken is 1% and 4% respectively? how many trades required to double the money :)??also how risky is 4 % risk ??:)
make an excel sheet and do the calculation by yourself



learn trading
not that easy to earn money.

maximum traders who are posting and well known are a big looser except a few.

so learn trading.

money will follow you to the bank
 

manish9300

Well-Known Member
make an excel sheet and do the calculation by yourself



learn trading
not that easy to earn money.

maximum traders who are posting and well known are a big looser except a few.

so learn trading.

money will follow you to the bank
sir,
with just 2:1 rr ,2% risk per trade,50% win rate (no pyramiding or anything else) .....the expected return per trade come to be 1%.but as timepass has pointed out to double money in 40 trades one need to compound at the rate of 1.75% per trade.please tell where i am getting it wrong.:)
bytheway this is one of my fav thread at tj.please post more of your trades with charts whenever u have free time.:D
 

Subhadip

Well-Known Member
sir,
with just 2:1 rr ,2% risk per trade,50% win rate (no pyramiding or anything else) .....the expected return per trade come to be 1%.but as timepass has pointed out to double money in 40 trades one need to compound at the rate of 1.75% per trade.please tell where i am getting it wrong.:)
bytheway this is one of my fav thread at tj.please post more of your trades with charts whenever u have free time.:D
Please find attached sheet.
http://www.2shared.com/document/qSCSt6UK/R_RISK.html
With pyramiding it can be done easily.in intraday it is giving at least 3 to 4 trades per day,so it will not take much time and days.
if someone trade with multi scripts, easier to be done.
Modify the sheet as per your requirement,and also the risk per trade.
 

healthraj

Well-Known Member
Please explain the Risk reward of 1:2.

For example

For 1 lakh if the Risk is 2% (Rs 2000) then only 100 quantities can be bought.
So the max risk would be 20 points.

For exiting, should have at least two targets one at 25 points and another at 50 points.

So the max profit would be 25*50 + 50*50 = 3750 - brokerage and other charges = 3500.

For 40 trades the if all are successful then it would be 40*3500 = 1,40,000

If your target is 1,00,000 then your success ratio should be at least 72%.

Or if assume that your 75% trades are successful (which is technically possible) then the profit would be

Loss = 10*2000 = 20,000
Profit = 30*3500 = 1,05,000
Net profit = 85,000

So doubling in 1 lakh should be possible if the success rate is more than 75%

Regards,
Raj
 

Subhadip

Well-Known Member
Please explain the Risk reward of 1:2.

For example

For 1 lakh if the Risk is 2% (Rs 2000) then only 100 quantities can be bought.
So the max risk would be 20 points.

For exiting, should have at least two targets one at 25 points and another at 50 points.

So the max profit would be 25*50 + 50*50 = 3750 - brokerage and other charges = 3500.

For 40 trades the if all are successful then it would be 40*3500 = 1,40,000

If your target is 1,00,000 then your success ratio should be at least 72%.

Or if assume that your 75% trades are successful (which is technically possible) then the profit would be

Loss = 10*2000 = 20,000
Profit = 30*3500 = 1,05,000
Net profit = 85,000

So doubling in 1 lakh should be possible if the success rate is more than 75%

Regards,
Raj
Do not go by math.
It is TRADING.

Do it to believe it.

If still doubt see the first part of the thread.
:clap::clapping::clap:
 

mravi

Active Member
While learning mathematics in school we need to deal with ourself to learn understand and score marks. We need to spend enough time if needed. And that is enough.

In stock market you get 6 hours 30 minutes to pass the exam. Our score also depends on how others are performing. :D

All traders will do this math at some point in life. I also did it just to learn that just doing maths on compounding interest is not enough.

All the best.
 
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