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Monthly Income through trading stocks

Discussion in 'Investment Analysis' started by monilhathi, Mar 9, 2014.

  1. monilhathi

    monilhathi New Member

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    Hi Shabbir

    How do we plan a regular monthly income from trading? So for example, I have Rs 50,000 as income set aside for trading, then I am looking at earning 5-10% every month (using strict SL). What should we be doing - day trading, swings etc?

    I have seen plans of using leverage (margin) but does that actually work out? I am a little apprehensive of these approaches.

    Can you please help on how do we plan for a monthly income from trading?
     
    monilhathi, Mar 9, 2014
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  2. shabbir

    shabbir Administrator Staff Member

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    5 to 10% earning per month is quite difficult because at that rate it should be doubling your money every year and that is almost impossible. 2 to 5% is more realistic target per month or 24 to 60% per year.

    3 years to double the money is more realistic to start with.

    Margins means you will not make any money unless you know what it is all about. Read http://shabbir.in/no-margin-trading/
     
    shabbir, Mar 9, 2014
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  3. monilhathi

    monilhathi New Member

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    Thanks Shabbir, I got the point!
     
    monilhathi, Mar 9, 2014
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Mar 10, 2014
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