Multiply your capital earning 10 points a day

Trading is considered as a complicated business and human mind complicates it further. We always tend to think that anything simple and easy won’t gain us any profit, and so we start exploring complex trading strategies which can make us millionaire in a month. After spending years in this field, I very well know that such strategy doesn’t exist. One becomes wealthy step by step by following a trading system with discipline and consistency. It doesn’t matter whether this system is simple or complex.

In this post, we would see how you can grow your money by earning just 10 points a day. We have considered NSE Nifty for calculation purpose but you can replace it with any stock or index you wish. You can earn this 10 points in one trade or multiple trades, by following news or charts, it really doesn’t matter!  We would not discuss any strategy which can help you earn this, rather we shall focus on the tremendous profit potential if you consistently make 10 points a day. Refer our ‘AFL of the day‘ section or ‘Excel Trading‘ section to explore profitable strategies:

AFL of the week: 14-73 EMA crossover system

Trading Range Breakouts on Daily timeframe: Excel Sheet

Let’s suppose you have an intraday trading system which earns you 10 points a day in Nifty futures. Lot size for Nifty is 75 and the margin required to buy/sell 1 lot is 45000 Rupees. So if you consistently make 10 points a day and invest all the returns back into your trades,  your capital becomes 16 times in just 200 days. That means 50000 rupees invested would become 8 Lakhs in a matter of 1 year (considering 200 trading days in a year). See how your capital grows with time in the below graph:

capital_growth

That’s great Isn’t it? But wait, if you are doing purely intraday trading then you can put MIS orders and save money on margin. For my broker, intraday margin for Nifty futures is just 15000 Rupees. If we re-draw the above graph considering this margin, then it would look like this:

capital_growth_2

That’s almost 70 Crore rupees in 200 days. Did you ever imagine you can multiple your money to that extent by just earning 10 points a day. I just proved that it’s possible on paper. The Excel sheet with detailed calculation will be shared at the end of this article.

Now coming back to the mysteries of human mind. 99% of traders do not stick to any rules for more than 1 month. Did you observe what’s common with the above two graphs. The returns are very low in the first few days, and they spike up towards the end. Seeing the low returns in the beginning most of us tend to give up. Its not difficult to discover a system which gives you 10 points a day, but the difficult part is to stick to it and letting your money grow. Compounding your money is most essential to be a successful trader.

It’s not difficult to discover a system which gives you 10 points a day, but the difficult part is to stick to it and letting your money grow. Compounding your money is most essential to be a successful trader.

Download the excel sheet from below link. You can play around with margin amount, lot size and number of points to estimate your capital growth over time.

Capital Growth Excel Sheet

16 Comments

  1. Nice article. good informative read. It works wonders only if you consistently make 10 points profit, daily. You have not considered losses, or what if we cannot make 10 points profit on some days.

    • Hello Ashish,
      The primary assumption behind this article is that you make 10 points net profit a day. It’s possible that you make 90 points loss and 100 points profit, which is effectively 10 points profit.

  2. Dear Sir,
    As per your calculation, on the 150th day we can buy or sell around 4050 lots of nifty future. Is it possible for us to place the order for such quantity? Kindly explain.

    • Hi Selvaraj,
      Right now the quantity freeze size for Nifty Futures is 10000. It may vary from time to time depending on exchange regulations.

  3. Dear Sir,

    Thank you very much for your speedy reply. Based on your reply, we can trade 10000 lots at a single order. Is it right?

    • Correct, but there might be liquidity issue. Your order would not be executed at the same price.

    • There is no solution as such to address liquidity. However, to be on the safe side you should always put limit orders when betting on large quantities.

  4. sir Range Breakout in Daily TF Sheet gives buy above & sell below levels which are not activated on daily basis ? & it gives risk reward ratio of 2-1 ,, like in nifty if 1st trgt is of 30 points then the SL is aprox. 60 points ??

  5. Sir,
    Thanks for best streatagy.
    Sir, It’s confirm 10 point profit after breakout buy or sell? and what is the stoploss?
    regards.

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