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How to be profitable in Stock Market?
Consider that there are an average of 20 working days in a month.
Let's take a situation where you have a capital of 50,000 rupees and plan to trade in options.
If you target a 2% profit per day, which would be 1,000 rupees, over 20 days, your total profit would amount to 20,000 rupees.
However, it's not necessary to make a profit every day; let's say you have a loss of 1,000 rupees for 5 days. By keeping a strict stop-loss so you don't lose more than 1,000 rupees, your net profit for the month would be 15,000 rupees.
This is equal to a 30% return on your capital.
In short, you can earn a 30% return in a month if you trade by managing your risk properly, staying away from greed, and not foolishly holding onto losses. You need to have strict risk management to become one of the 10% of traders that @SEBI_India says are profitable.
This has been a thought of mine, and I'm trying to apply it to myself. I'll be sharing my @BeSensibull PnL statement with you all soon. Let's see how I do in a month.
#NIFTY #SENSEX