Thursday, May 18, 2017

How much money you can make from stocks market in a year?



Investors are coming to stock market when they compare average returns from other asset classes. Many asset class return when it adjusted to inflation comes below 7%. So we must look into stock market. Just making 7-10% return annually in stock market is not a good idea if you want to make the trading as a career. I believe in both trading and value investing. Some may rise eye brows how can one person can become a passive long term investor and swift churning day trader. They are right , human being with natural emotions cannot. But if they are guided by certain mechanical investment management system or letting the robot to trade , then it is possible to double your money in one year period.

From this thought I have developed a truly working intraday trading system as well positional trading system together. I took several months to reach in conclusion as it required many months of back testing and data analysis. I am happy as my effort started getting very good yield , i mean I have to say that I could able to create 40-50% return in an average every year.

If you are a day trader assure that your broker is giving the lowest charges. In my analysis I took altogether 0.05% including brokerages and other charges. I have back tested with the software in different market conditions. Look at the recent period. Stock market was trading direction less and scaring traders with high volatility and gap up and down openings. Intra day volatility was dangerous killer many days. We have taken last 44 trading days. You can seen Nifty VIX is trading at the highest level. So this was the best period to analyse the profit making capacity of technical trading system. I used Rs. 100,000 lakh as capital . I have taken 5 times exposure. remember some brokers are ready to give exposure up to 20 times. But I am conservative and I did not want to take big amount of money. I let the software to back test it. It gave me daily net return of Rs. 340 after all charges ( Remember I have provided 0.05% for charges and I also provided for slippages) . When you annualise this return, I am getting Rs.68,000 or 68% from my invested capital. I only took 200 days of trading in one year as I avoided holidays as well as some time for my personnel leisure. If you want to take trading as profession this method may help you in great way.

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