It relies on capital deployed too. 100% agree if incremental features are solely few lakhs for instance. However if in case you have this already, finest might be to strive preserve it operating and attempt to make cash from outdoors markets too and enhance capital after which preserve compounding. After a degree, additional returns turns into very helpful – esp since all the incremental features might be actual returns so enhance in actual returns is rather more as a %.
I would definitely commerce in a single day programs in the event that they pay say 25-30% annualized returns and have significantly better management over drawdown vs index.
Even 20% + annualized over long run is kind of excessive, and that i don’t suppose we are able to count on indices to pay that a lot. Individuals are getting carried away by good markets in the event that they count on that a lot imo. I’ve seen each 20% markets ( ~2000 decade) and 10% markets(~2010 decade) and in addition single digit over 5+ years.
Additionally 1 yr return doesn’t imply an excessive amount of – each out-performance and under-performance.
neha1101:
So 35 p.c is just not wow.
At cagr degree for previous 5 years, it’s wowww. I might take that return any day.
neha1101:
Whats the min capital that we have to commerce…just for my data as i’m a investor and dont commerce
One can commerce with any capital. However personally I wouldn’t suggest anybody to commerce with an quantity lower than 30lakhs. It’s not value it.Even when you generate 30 p.c return, you’re making solely 9lakhs per yr. 15 p.c return you will get from mutual funds. So you might be solely getting 4.5 lakhs extra. You will get higher package deal than this in some MNC.I’m speaking about full time buying and selling.
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Basic case of how enticement / allurement works in Inventory Markets.
Preliminary declare: Make 5000 on day by day foundation
brother i’m additionally being profitable from market on common foundation . you will need to have proven complete pnl additionally as an alternative of simply higher half. it’s Potential to make cash on market on day by day foundation . This reality could also be dream to you however there are individuals in market who makes cash from market on constant foundation.
Zerodha Pnl Hyperlink :- Console – Zerodha
However when you see the particular person assuring you of day by day 5000 himself / herself is just not incomes that a lot on their verified hyperlink.Even when you take avg it involves round ~1290 (Jan to Aug) as per PnL hyperlink.
neha , you will need to have minimal 20-25 lakh as there is no such thing as a leverage in fairness swing buying and selling . My buying and selling capital is 12 lakh .
To make such a return on day by day foundation the capital wanted.
2-5 p.c per 30 days
Subsequent assurance, you may earn 2-5 % per 30 days with the above capital
neha there 252 buying and selling buying and selling days in 2024. In swing buying and selling you may generate 22-35 % return .
Now the whole assurance goes haywire.Declare 1: 5000 dailyClaim 2: 2% month-to-month with capital of 20L leads to day by day return of ~1,900
So watch out with ppl who make such assurances.
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@ Arun_chandel
Can I find out about your expense ratioAnd can I additionally find out about why that your trades purchase worth ranges from ₹ 10000 to ₹ 1 L for every shares.Is that this some kind of portfolio diversificationI heard someplace,we must always make investments solely 5% of our portfolio in single inventory and no more than that
In my trades,I prefer to commerce lessOn a median,I execute 4 trades of each purchase andsell in a month.in order that,I can minimise the taxes and expenses.For ₹ 48700 revenue,I’ve incurred bills of ₹2700.I’ve extra revenue of ₹3000 from the dividends.So whole revenue quantity to ₹51700So web fee of return is 17 %For 15/04/2024 to 31/08/2024My capital ranges from 2.5L to three L
99% of us will earn more cash by shopping for simply index momentum etfs that has given 20-22% return traditionally.
When you’ve got have a capital of lower than 50 lakhs, there is no such thing as a have to do buying and selling in any respect. Even when you’ll be able to make 30% after studying and tons of expertise, you might be simply making 10% above a momentum index etf. That’s simply 5 lakhs of extra cash for all of your time in a yr. You’ll earn greater than 5 lakhs simply in another day job.
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Harshajyoti_Das:
momentum index etf.
Learnt one thing new – By no means knew of this ETFs. Thanks will look into this. A preliminary search in google signifies Nifty 200 momentum 50 or 30. Does this imply that out of the 200, the very best 30 might be included on this etf. Must test if SBI or UTI has this.
Asking I’ll do my very own research, if somebody is invested in Nifty 50, Nifty subsequent 50 and Midcap 100. These represents the highest 200 – is it not?
Sure, these etfs choose shares each 6 months primarily based on a mathematical modeling and selects shares with probably the most momentum.
There are each mutual funds in addition to etfs.
Some examples:
Mirae Asset Nifty 200 Alpha 30 ETFHDFC Nifty200 Momentum 30 ETFKotak Nifty Alpha 50 ETFTata Nifty Midcap 150 Momentum 50 Index Fund
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In raging bull markets its all simple, threat appears distant. All numbers together with long run look rosy.Not saying momentum index is unhealthy, however buying and selling has its personal place.
However yeah, want capital else no level. Nonetheless one can do that half time till one has sufficient capital to be full time.
Principally sensible beta ETFs are a good way to speculate and diversify IMO.
(Alpha, Momentum, Worth, High quality & Low volatility)
These are the returns of the Good beta Indices over time:
That is their rating primarily based on the return they generated annually:
This exhibits the variety of instances they’ve delivered superior returns.
For eg: Alpha has delivered superior returns, because it was ranked 1st for 7 years out of 19 years.
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I used to be speaking in regards to the common of 5 years or 10 years CAGR. Throughout bull market they’ll go up 60-70% as effectively. However throughout bear market they fall greater than Nifty as effectively. Nevertheless, when you hedge it with 30-50% Gold and many others. the drawdown is rather a lot decrease. I often hedge primarily based on Nifty’s PE. Like proper now, I’m solely 50% uncovered to the market.
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I could also be unsuitable however this doesn’t appear to be exit technique. It appears to be like like you may have the persistence to attend out a yr most good shares are inclined to go up not simply 5% however extra and we’ve to trip part of it if not all of it.
I exploit PB, PE and Dividend yield multiples for exits and entry, not a flowery one but it surely fits me, I like to recommend you learn “What Works on Wall Avenue” e book. It’s a must to have a method that tells you the inventory is undervalued and overvalued as per set parameters. I certain did miss the rally in railway and shipbuilding cos however I did seize a part of the run.
In a bull run shares multiply so settling for five% doesn’t appear logical except you may have backtested it and outlined exit and entry. Strive studying valuation strategies (Peer comparability PE, PB, DDM and many others) it should appear daunting however helps in the long term or go for technicals. The winners often will cowl greater than your losses and there might be losses. You’ll be able to really feel fortunate getting 5% however there might be a inventory that may go down 90% and we may be holding quite a lot of shares like that.
Return to the drawing desk and discover a technique that fits you and made cash previously both by technical or elementary evaluation.Holding 3 shares is just not a diversification if we have no idea sufficient, diversify to no less than 30 shares or extra.“Diversification is safety towards ignorance ,” BuffettI maintain 137 shares know completely nothing about any of them ( I maintain GMMPFAUDLR and know nothing about it, I swear!)
I maintain Indusindbk 15@ 1,401.45
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For the previous few months,I’ve been buying and selling primarily based on elementary evaluation.and averted utterly relaying on technical evaluation.
First I closely relayed on tickertape software,
I’ve used this abstract of parameters to pick out the shares(It was some kind of elementary evaluation)
After zerodha changed tickertape with Tijori ToolIt was arduous to adjustAfter a while , Tijori Software was very helpful.I’ve discovered round 50 % of elementary analysisI use parameters of those for inventory choice
I wish to have an investor mindsetTrade much less in yearBuy shares and await a fews month to a yr
Presently,I’m unable to do that due to month-to-month monetary commitments.However in 2 years I may be freed from theseI hope that
I at the moment have revenue goal to make 50 % in yearAnd in 2 years .I would like it to be 100 % revenue goal.
After that ,I wish to have an inexpensive revenue goal of 20 % in a yr and to be consistency worthwhile following years to come back.
In actuality,for 4 and half months I’ve achieved my revenue goal round 17% .I hope to complete my revenue goal of fifty% within the yr from15/04/2024 to fifteen/04/2025
i additionally earlier than commerce in money market – when market goes in a single route its give good revenue ,in bear and sideways its SL hitting continusely – so i ended buying and selling in fairness
i imagine Mutual fund – let skilled do – in 1 crore capital i spend money on BOND , Fairness , Gold – with out pressure 25% i get + i commerce in choice additionally by colleterial – solely per 30 days 2% , yearly 24% + 24% from funding – no pressure -in choice i’m buying and selling solely month-to-month calender unfold , No intrady – nothing – blissful available in the market
that is my present portfoliorecently i park cash in GSEC fund – due to fee reduce
SIP is occurring on choice month-to-month profiti am not holding any single inventory
I observe one exit technique when inventory choosing: capital preservation. So setup a cease loss for any inventory at say 15-20% beneath the shopping for value.
That removes emotion and bias from the choice making.
My ETF and index funds keep away from all these selections resulting from diversification and may compound longer consequently.