Monday, March 2, 2015

how many lots?

How much money do u want to make thru trading per month?
1lac? 2 lac? 5 lac? 10lac?
Ok....1lac?
Fine!
How?
Well, well, well.....
Wishing means nothing without the way!
Market doesn’t owe u anything. U have to name it to claim it.....
Right!
Come, lets see how u can make 1 lac per month....
First u need a method...that too a tried and tested and great one....
And this article is not aimed at helping u get one.....it is assumed that u have one....already...
U will be tempted to say that what else is left to be done if u already have the method...
Well, right, and worng....
Right because the method that works is the key...
Wrong, because u r still far from the dream of making that 1lac u want per month.....
So, what is that which is left?
......what is left is
........applying that method to the effect....
Let’s take an example....
Suppose, u want to trade in nifty and with 10 lots.
A small back of the envelop calculation will tell u that u need
Rs.1,00,000/10lots=Rs.10,000/- per lot per month to total that 1 lac.....
That would mean Rs.10,000/25lot size=400 points per month per lot....
Easy?
Well, not impossible....but certainly not easy.....
Besides, history confirms that there are many months where market vibrates within 200,300 point band all month....and squeezing 400 points every month is not a joke....
Is there a better, more pragmatic way?
Let’s see....
Rs.1,00,000/50lots=Rs.2,000/- per lot per month to total that 1 lac.....
That would mean Rs.2,000/25lot size=80 points per month per lot....
Right?
Right.
Easy?
Yes....!
Except...the guts to actually put on the table that much....
Increase the bet-size bit by bit.....practice it...
practice,practice,practice....
can’t ignore lot size without never getting close to your dream!!!
(but ofcourse, got to have a method first.....)

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