This is one of the most asked queries. It resembles the doubt in many newbie traders mind.
Query: I have a small capital “Y” amount. If I trade in stocks, my profit will be 0.1 to 0.5 % of my capital. But index options are cheap. And it has the potential of giving more than 10% profit of my capital in few trades. But I keep on losing money. What to do?
Let us see the different scenarios.
Factors to consider:
Understanding the price movement.
Emotional balance.
Flexibility and adaptability.
Person A is a newbie trader with 1 to 2 years of experience in trading. He get tensed during live market and unable to take right trading decisions which results in losing the capital.
Person B has more than 2 years of experience in trading. He can understand market movements, but lacks the flexibility in trading which results in losing money.
Person C is an experienced trader and he is good in understanding market & has the ability to adapt any market situations. He makes more than 10% profit in few trades consistently.
Experience in trading is important in deciding profit. That too in index options. Any one can make money in share market if he develops the qualification for it.
Query: I have a small capital “Y” amount. If I trade in stocks, my profit will be 0.1 to 0.5 % of my capital. But index options are cheap. And it has the potential of giving more than 10% profit of my capital in few trades. But I keep on losing money. What to do?
Let us see the different scenarios.
Factors to consider:
Understanding the price movement.
Emotional balance.
Flexibility and adaptability.
Person A is a newbie trader with 1 to 2 years of experience in trading. He get tensed during live market and unable to take right trading decisions which results in losing the capital.
Person B has more than 2 years of experience in trading. He can understand market movements, but lacks the flexibility in trading which results in losing money.
Person C is an experienced trader and he is good in understanding market & has the ability to adapt any market situations. He makes more than 10% profit in few trades consistently.
Experience in trading is important in deciding profit. That too in index options. Any one can make money in share market if he develops the qualification for it.
