Sunday 10 September 2023

A Strategic Approach to Earning One Crore in Less Than a Year through Stock Trading

 


Introduction

Earning one crore in just eight to nine months may seem like an ambitious goal, but with a well-structured trading strategy and disciplined execution, it can be achieved. In this guide, we will discuss a trading strategy that utilizes the stock market to help you reach your financial target. Please note that all trading involves risk, and there are no guarantees of success. Always consult with a financial advisor and be prepared for potential losses.

The Trading Strategy

This trading strategy focuses on consistency and gradual growth of your trading capital. It is designed for individuals with a minimum investment of 60,000 INR and can be applied to any stock or index. The goal is to make 20 points of profit per trading day. Here's how it works:

Choose a Trading Instrument: For this example, let's consider trading in Nifty. The lot size for Nifty is 50, and the initial margin required is approximately 30,000 INR.

Start with 2 Lots: Begin with 2 lots of Nifty, which equals 100 shares. Your initial investment should be 60,000 INR.

Set a Daily Target: Your daily target is to make a profit of 20 points per lot. This means you aim for a total profit of 40 points (20 points x 2 lots).

Daily Trading Routine: Trade diligently, and once you reach your 40-point profit target for the day, exit the trade. Do not be tempted to overtrade or be greedy. Discipline is key.

Increasing Lot Size: When you accumulate a profit of 30,000 INR, increase your lot size. For example, you can move from 2 lots to 3 lots.

Continue to Scale: Repeat this process of increasing your lot size every time you achieve a 30,000 INR profit. Your goal is to reach a cumulative profit of one crore INR.

Example Progress Table:

Lots Points Daily Profit (INR) Cumulative Profit (INR)

2 40 2,000 2,000

2 40 2,000 4,000

2 40 2,000 6,000

... ... ... ...

3 60 3,000 33,000

3 60 3,000 36,000

... ... ... ...

Repeat this process until you reach your one crore INR goal. Remember, discipline and risk management are essential. If the market is not favorable, it's crucial to cut your losses and wait for better opportunities.

Conclusion

Earning one crore INR in eight to nine months through stock trading requires a well-thought-out strategy, discipline, and a strong commitment to managing risk. This example strategy offers a structured approach to gradually increase your trading capital, but it's essential to remain cautious and adaptable in the dynamic world of financial markets. Always seek guidance from financial experts and consider your risk tolerance before starting any trading activity.

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