By Mr. Gopalakrishnan V, Money Avenues,
Chennai
Share Intraday traders, who we meet, always want stock tips and trading strategies for being successful in their trades and it’s understandable.
Few are successful, but many end up losing their hard earned money chasing big returns every day. And there are many reasons for this, not related to markets, but due to individuals trading approach.
It’s true that intraday traders must focus on the technicals to be successful in intraday trading.But they should do their basic maths of trading.
After maths, traders should keep in the mind, the 3D strategy of stock trading – Diligence, Discipline and Diversification.
This is how trading maths work -
Let’s consider the year 2015 for our calculation.
A) No of days in 2015 = 365
B) No of weekends(Saturdays and Sundays) = 104
C) NSE holidays = 15
Total days of trading = A – (B+C) = 246 days of trading.
Let’s assume a trader brings in Rs. 1 lac as capital in the beginning of 2015 for intraday trading.
His/her target is to achieve 0.25% (post taxes) on Rs. 1 lac every trading day. And that works out to Rs. 250 per day for Rs. 1 lac as trading profit.
If he/she is going to be conservative just by targeting 0.25% or / Rs. 250
every day on Rs. 1 lac capital, can you guess what is returns will be at the
end of the year?
On Rs. 1 lac capital, his/her rupee returns will be –
Rs. 250 * 246 = Rs. 61,500
In percentage –
0.25% * 246 days = 61.5% for one year.
So by conservatively trading & targeting just Rs. 250 on his/her Rs.1 lac investment every day, he/she is able to make Rs. 61,500 or / 61.5% in one year. Assuming the trader loses money in the trades, all he/she needs to do is to aim for Rs. 250 (deducting trading loses and taxes) a day as profit. Once if person is clear about the trading maths, next he/she must work on his/her stock trading strategy to achieve this simple maths.
Traders should understand that trading and investing is more about common sense and definitely not rocket science.
Contact Details
Gopalakrishnan V
Founder & CEO
Money Avenues
askvgopal@gmail.com
www.askgopal.com
Share Intraday traders, who we meet, always want stock tips and trading strategies for being successful in their trades and it’s understandable.
Few are successful, but many end up losing their hard earned money chasing big returns every day. And there are many reasons for this, not related to markets, but due to individuals trading approach.
It’s true that intraday traders must focus on the technicals to be successful in intraday trading.But they should do their basic maths of trading.
After maths, traders should keep in the mind, the 3D strategy of stock trading – Diligence, Discipline and Diversification.
This is how trading maths work -
Let’s consider the year 2015 for our calculation.
A) No of days in 2015 = 365
B) No of weekends(Saturdays and Sundays) = 104
C) NSE holidays = 15
Total days of trading = A – (B+C) = 246 days of trading.
Let’s assume a trader brings in Rs. 1 lac as capital in the beginning of 2015 for intraday trading.
His/her target is to achieve 0.25% (post taxes) on Rs. 1 lac every trading day. And that works out to Rs. 250 per day for Rs. 1 lac as trading profit.
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| Gopalakrishnan V, Money Avenues, Chennai |
On Rs. 1 lac capital, his/her rupee returns will be –
Rs. 250 * 246 = Rs. 61,500
In percentage –
0.25% * 246 days = 61.5% for one year.
So by conservatively trading & targeting just Rs. 250 on his/her Rs.1 lac investment every day, he/she is able to make Rs. 61,500 or / 61.5% in one year. Assuming the trader loses money in the trades, all he/she needs to do is to aim for Rs. 250 (deducting trading loses and taxes) a day as profit. Once if person is clear about the trading maths, next he/she must work on his/her stock trading strategy to achieve this simple maths.
Traders should understand that trading and investing is more about common sense and definitely not rocket science.
Contact Details
Gopalakrishnan V
Founder & CEO
Money Avenues
askvgopal@gmail.com
www.askgopal.com
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