WISH YOU ALL VERY HAPPY & PROSPOROUS AND HEALTHY WEALTY NEW YEAR 2014
BULL OR BEAR IT DOES NOT MATTER
MARKET RISE LIKE LADDER AND FALL IN LIFT
Is it possible to make 652 lakhs in 497 Trading days with a starting capital of 1 lakh using NIFTY Futures.
Yes theoretically it is possible.
So what is the Principle behind this strategy?
1. NIFTY is Trending only 20-25% of the time and so why always take 20 points Stoploss when 80% of the time you are going to loose. Why not take 7-10 points loss and close the trade if stoploss hit.
2. 20-25% of the time when the market is trending, NIFTY never crosses the opening price by more than 10 points. So in those cases NIFTY always gives on an average 55 points on the LONG side and 77 points on the SHORT Side.
3. 80-20 Principle. 80% of the losses comes from 20% of the trades and so 80% profit can come from 20% of the trades.
4. Why do we need to spend hours before the monitor, while we can spend maximum 30 minutes a day. (15 minutes during opening and 15 minutes during closing)
So let us say we do hundred trades.
75 trades with a loss of 10 points = 750 points loss
25 trades with a gain of 65 points = 1625 points gain
Net gain = 875 points in 100 trading days.
If you started trading with a capital of 1 lakh and 2% Risk, the profit would be Rs 1,75,000.
With pyramiding (reinvesting the profit ) it would turn to crores.
It is copy paste n my moto to trading .
Thumb rule of trading CAPITAL PROTECTION
For Outcomes from trading, which one shd be avoided?
Small profit ( happens most of the times)
Big profit (happens occasionally)
Small loss ( should happen always whenever the trade is wrong)
Big loss( this is the thing which will kick you out of the game)
Method to avoid big loss PROTECTIVE STOPLOSS
Survive in the game and seek more opportunities