Is 5% per month profit achievable?

Hi All,

Do you think 5% profit is achievable in stock market. Say I have 5 lacs, so can I make 25K per month? If this works out, it will be passive income.

I am reading through some options strategy, arbitrage, etc. to understand if we can generate 5% profit in a month consistently.

Thanks,
Keshav.

 

If you have a good strategy yes. With 5 lacs in trading account if you trade in options it can give you 100% return, it could also give you -100% return. So please be careful. Based on my experience, if you are into options, then start with Rs10,000 and stick with 1 or 2 lots..dont over trade and see the results for 3 months. If you are confident your strategy works then slowly start scaling up. But as Shabbir says, stick with cash segment, though the returns looks low compared to options but you will have better success rate.

 

Thanks Shabbir sir and Sainath -

I am not looking for huge returns. Just thinking to generate some passive income from the funds with me. I have 25 lacs at the moment. Instead of buying property and then paying EMI - I would like to generate passive income with it. So thinking what should I do.

Regards,
Keshav.

 

@shabbir i feel even 3% per month is somewhat difficult to achieve

 

Does anyone know KRDS? Sorry for asking here, seems they provide good returns using options strategy.

 

by using option selling strategy with careful watch to volatility you can earn 4-5 percent per month for sure.

 

Thanks. Do you know who teaches this?

 

I remember there is one book on this but for that you need to search wiley website, option selling and volatility

 

"22+% return in two months time is enough for me" - Superb!! Thanks for sharing it Shabbir.

My only point was - instead of keeping the cash idle in bank, if I think of hedging it may help. From my reading from last few days, hedging may give 2% / month. (e.g. buying stock and selling options, something like that I mean, I just want to generate some income from the idle cash.

 

@kamat79 Hedging is a good strategy. For instance my equities portfolio by about 1500+ today but i bought a nifty put option and made a 2500+ profit on them. So in effect, i am trying to save my equities portfolio.

 

If we buy current month nifty futures and sell next month nifty futures , we will find some price difference as the position is hedged it is low risk, but can we get profit using this typw of setup