Overwhelming response for the previous thread. However, I think people missed a crucial point there.
The calculation I have done is for staying profitable after taking a reasonable risk.
As humans, we don’t have the tendency to stop. Growth is life. And that is desired.
(1/n)
The calculation I have done is for staying profitable after taking a reasonable risk.
As humans, we don’t have the tendency to stop. Growth is life. And that is desired.
(1/n)
However, you first learn to crawl. And then walk. Then run.
If you are doing 25%+ p.a. on a consistent basis - atleast for 3 consecutive years, then you are free to explore higher horizon of returns. You have capital and skills, then target higher returns by all means. (2/n)
If you are doing 25%+ p.a. on a consistent basis - atleast for 3 consecutive years, then you are free to explore higher horizon of returns. You have capital and skills, then target higher returns by all means. (2/n)
No one is going to stop you from doing that.
But how many twitter traders (or any trader for that matter) can truthfully claim that?
Half of them are low on capital and almost other half is low on skills. But all of us want to earn 50%+ p.a. (3/n)
But how many twitter traders (or any trader for that matter) can truthfully claim that?
Half of them are low on capital and almost other half is low on skills. But all of us want to earn 50%+ p.a. (3/n)
Even with good skills and sufficient capital, you would falter because your expectations from each trade is too high for sustenance. Spread your expectations over many many trades and earn small returns from most of them without losing a lot in any one trade. (4/n)
You would be amazed at the cumulative impact of such small consistent returns over a longer period of time.
When you start your trading positions defensively, you have option to watch the market unfold peacefully.
If the market is not going as per your analysis/position, (5/n)
When you start your trading positions defensively, you have option to watch the market unfold peacefully.
If the market is not going as per your analysis/position, (5/n)
...you have a low risk position to manage.
However, if the market moves in your direction, add more of such low risk positions and make more than 2% in those times. Who stops you?
But if you start with a very big position to make an outsized return on all your trades... (6/n)
However, if the market moves in your direction, add more of such low risk positions and make more than 2% in those times. Who stops you?
But if you start with a very big position to make an outsized return on all your trades... (6/n)
... - and market moves against you - and it would always, more often than not, move against you to take you out of your position - you would be losing a limb and a lot of courage.
(7/n)
(7/n)
Some saying but that can be achieved by putting the money in good mutual funds and some even ready to borrow at 24%-36% p.a. to show how meagre a 26% p.a. return is.
Yes, good MFs can give such returns over a long period of time but then you don't learn to fish on your own. (8/n)
Yes, good MFs can give such returns over a long period of time but then you don't learn to fish on your own. (8/n)
If you have a good job or a business where you are good at - making good progress in life, then by all means focus on that and let your mutual funds handle your investment needs. But if you are in trading because you have a passion for it, then MF argument wouldn't suffice. (9/n)
Minimum desirable returns argument won't justify why do this and not that.
Those who can quietly do 26% p.a. consistently, would certainly do 50%+ p.a. someday.
And those ready to borrow at 24-36% p.a. - I have a suggestion for you, try cash from credit cards.
(10/10)
Those who can quietly do 26% p.a. consistently, would certainly do 50%+ p.a. someday.
And those ready to borrow at 24-36% p.a. - I have a suggestion for you, try cash from credit cards.
(10/10)
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