MY DEAR BROTHERS AND SISTERS,
I PROMISSED U FOR ONE STRATAGY SOME DAYS AGO.BUT DUE TO MY HEALTH PROBLEM I CAN'T POST IT ON TIME. I AM SORRY FOR THAT.FALLOWING IS THE STRATAGY,IF U LIKE IT THEN PLS. DONATE 500rs. TO ANY ORPHANAGE NEAR BY U.
REQUIRED CAPITAL-50,000/- (fifty thousand only)
TARGET-10,000,00/- (ten lakh)
TIME FRAME-5 YEARS.
Actually we can't say this a stratagy.This is an STP (systematic trading plan) based upon nifty options.In this we need to trade in nifty options only.
U need to deposite 30000/- rs. (thirty thousand)in ur saving A/C.
And 20000/- 20,000/- (twenty thousand) should be trancefered to ur trading A/C
Means we need 20000/- rs. for start this STP.
Now come to the main subject.There are 20-22 trading days in a month.And we need to trade everyday for achieve our goal.
As said we should trade in NIFTY OPTIONS only.And only in those options which are IN THE MONEY (ITM)or AT THE MONEY(ATM).One may ask what is mean by ITM&OTM?
IN THE MONEY-suppose nifty trading @5100 at that time 5000 call must treated as ITM. As wel as 5200 put should be treated as ITM
AT THE MONEY-nifty trading @5100.at this time 5100 call&put both should be treated as AT THE MONEY.
WE SHOULD STRICTLY AVOID `OUT THE MONEY' OPTIONS.
OUT THE MONEY- nifty trading @5100 at that time all those calls which STRIKE PRICE is more than 5100.In case of puts we should avoid thoes options whoes strike price is below 5100.
NOW FIRST STEP-PAPER TRADING.
This is an very important step.in which we need to do paper trading for three months.In first 15 days u need to observe nifty movement along with is ITM &ATM options.I know this is very dull job.but,its necessary.
After 15 days observation u need to start ur paper trading.thought behind paper trading is to improve your success ratio before we start actual tradin.
Your work start from 30 min. before european mkt. open.(second half) because this is time on which we can see some reasonable volatality in mkt. u need to avoid trading in first two hours.
Our motto is to EARN 10 points with sl of 10 points. eg-suppose nifty @5100 and 5100 call is trading at 116 then ur tgt. should be 126 and stop loss should be-106.Same if u want to trade in put options.
Now as said thinking behind paper trading is to raise our SUCCESS RATIO(SR). So in this three months period u need to raise ur SR up to 60:40. means in 20 trades u need to achieve 10 points tgt. for 12 times.if sl trigger for 8 times then also its ok.
So u need to continue ur paper trading until u do
nt achieve SR of 60:40.
After three months paper trading ucan start ur practical trading with SR 60:40. means profit of 120 points against loss of 80 points.
Ur net points=120-80=40 and profit should be 40*50=2000 minus brokerage.
In these 3 months u should not bougther if there is any loss. bcoz in this period profit earning is not our motto. Our motto is again to raise our SR to 75:25.
REAL GAME BEGUN FROM SEVENTH MONTH
SO FROM 7th MONTH UR SR IS 75:25 WITH TGT. OF 15 POINTS AND SL OF 10 POINTS.
Most important thing- u need to trade only once in a day.dont execute second trade in any case.u need to controle urself whether there is profit or loss in one and only trade.
U need to achieve 15 points tgt for 15 times now.as wel u can afford 10 points loss only in 5 treads. so from seventh month ur profit should be-
15*15=225 pts. profit
10*5=50 pts. loss
TOTAL 175 POINTS PROFIT or 8750rs.
(but most important facor is brokerage now.consult with ur broker with friends and try to bring ur brok. as low as possible. currently many brokers offer rs. 35 including both buying and selling.)
But for calculation we reduce 1750 as brokerage from our profit.
8750-1750=7000 pure profit.
NOW WE NEED TO DEVIDE UR PROFIT OF 7000 IN 3 PARTS.
1)Rs.4000/- for ur daily needs.
2)U need to start an SIP for mutual fund.so RS.2000/- mutual fund sip.
1)Rs. 1000/- to saving account.
U NEED TO CONTINUE THIS FOR NEXT 6 MONTHS.AND AFTER 1 YEAR UR PROFIT SHOULD BE-
42000/- means ur profit of first year is 42000/-. (we didn't trade in first three monts,as wel as we didn't calculate any profit or loss in the period of 3rd,4th and 5th month)
From second year ur success ratioo(75:25) as wel target(15 pts)& stop loss(10pts)is same but now major change is from now U R PERMITED TO TRADE IN 2 LOTS.
SO ur profit should be-
30*15=450 pts profit
20*5=100 pts loss.
TOTAL 350 POINTS PROFIT.MEANS 17500 RS. reduce 2500 rs. for brokerage and other expeces.
PURE PROFIT IS=15000/- DEVIDE IT AS UNDER-
8000/- FOR U.
2000/- FOR SIP
5000/- TO SAVINGS A/C
TOTAL PROFIT FOR 2nd YEAR 15000*12=1,80,000/-
From this year your success ratio is same but TARGET AND SL GET REVISED.FROM 15 &10 TO 20 AND 15.
Means from third year u need to trade with SR 75:25 and TGT-20 pts SL-15 pts.as wel as lot qty is same as in previous year (2 lots,100 qty)
ACCORDING TO THIS UR PROFIT CALCULATION IS-
40*15=600 pts profit
30*5=150 pts loss
TOTAL PROFIT=450 pts means 22500/- rs.(reduce 4500/- as brok. and expences. 22500-4500=18000/-)
10000/- for u
6000/- to savings account.
TOTAL PROFIT FOR 3rd YEAR-2,16,000/- (two lakh sixteen thousands)
NOW CONVERT UR SAVINGS A/C BALANCE IN F.D. FOR TWO YEARS.
AS WEL AS U NEED TO CONTINUE IN 4 th AND 5th YEAR WITH SAME SR AND SAME TGT&SL. ALSO DEVIDE IT AS U DID IN 3rd YEAR.
MEANS UR PROFIT IN FOURTH AND FIFTH YEAR IS SAME AS THIRD YEAR-2,16,000/-
SO TOTAL PROFIT IN 5 YEARS-
FIRST YEAR = 42000/-
THIRD YEAR =2,16000/-
OUR CAPITAL = 50,000/-
Rs.80000/- short from our target of 10 lakhs.but we did not calculate received interest as wel increase in MF NAV.
BUT MOST IMPORTANT THING IS-BCOZ OF 5 YEARS SYSTEMATIC TRADIN EXPERIENCE NOW U CAN EARN ANY CONDITION.
THANX FOR UR SUPPORT.SORRY AGAIN FOR MAKE U WAITING.
BEST OF LUCK FOR YOUR LIFE.
WISH U PROFITABLE TRADING!!!!!!!!!!
(I PREPARED THIS STRATAGY FOR SMALL TRADERS,BIG VOLUME TRADERS MAY DISAPOINT FROM THIS.IF ANY ONE WANT TO TRADE SERIOUSLY ON THIS `STP' AND GOT ANY QUERRY FEEL FREE TO ASK.-9922218177)