Share market trading in stocks in India right now , the timings are 9:15 am to 3:30 pm monday to friday, meaning share market is a full time business . The question that follows is can i do it alone and not do anything else?
Firstly i have to calculate the amount required in a month( which include my personal expenses, and home expenses) . Its important to first come to an exact amount. Then divide this amount by 20, or 4 which is the number of days trading is available . This would give us our target amount . The answer for 20 days would mean i am trading intra-day. The answer for 4 days would mean the profit i need to make on a weekly basis.
For example, lets say i plan to make 50000 in a month. This when divided by 4 would give me 12500 as my weekly target and when divided by 20 =2500 as may daily profit target. Using reverse calculations we can see the profit % i need to get to achieve my targets.
if my daily targets are 1% my investment would be 2,50,000 for intra-day.
if my weekly targets are 5% my weekly investment would be 2,50,000.
Next comes the basket i need to make. We would make a basket of 5 stocks , which means we would invest a maximum of 50000 per stock. and place orders at our targets and get out when they are met. There could be some losses in some of the trades which can be overcome in subsequent trades.
Based on the market conditions and the results we achieve we can modify the strategy to give us relevant results.
Hope you find this method of trading useful and wishing you a very good earning from the share market. Kindly share the link of this blog with your friends so that they can also benefit from this knowledge. My motivation to write these blogs also would remain high.
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