Friday, February 26, 2010

How to make double money...(Part I)

One of my friends in Mudraa shared his dilemma with me.

He said, "Since last 6 months nifty would have given me just 1500 points with my best method.

That would have been much less than my expectation and not enough reason for me to continue with trading."

I asked him, "How much points would have made you happy in this period?"

"Atleast 3000", he said.

"How many lots do you buy per trade?" I asked.

"One!", he replied.

"Are you sure about your method?" I asked

"Yes, yes!" he said. "I have been following it successfully since a long time"

"So, why don't you start buying 2 lots instead of 1" I suggested.

"This way, you will make 3000 points instead of 1500 for the same effort!"

This is my simple and basic suggestion for all.

First ensure you have an almost fool-proof, fail-proof secure method and then all you have to do is increase the bet.

This way you will not have to worry about the potential of earning even in small movements!

Just ensure you have enough buffer funds and a strict stop loss.

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