Comment on From IIT to intraday options on Nifty

rajeshgan commented on 25 Aug 2013, 09:08 AM

Mr Shirish – Thanks for your message!
The introduction part has answer to your first question in terms of % of profits made.
Expecting a return of risk free rate is far too less to consider for any business and to maximize that we use the power of leverage.
Trading is to be considered more of a business and to begin with, one needs to start off only with the capital one can afford to lose.
In all probability there will be multiple times when one goes bankrupt in the trading account and it is continuous learning and perseverance and might take a few years before one could zero-in on the strategy and markets that one would be trading profitably. Derivatives as a product itself is designed to factor in leverage and so handling risk:reward well becomes a part of trading business and the goal is to make atleast 4 to 5 times the risk free rate in a year.
Being a personal trading account, one would not want to reveal the absolute value and that is the reason why returns are talked in terms of percentages.

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