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:
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:
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.
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.
nice article intresting
Thanks Subair!
thanks sir
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.
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.
Not at all… Its total quantity. So max you can trade is 100 lots of Nifty in one order.
Thanks for your reply. Then what is the solution?
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.
the solution is to go from daily to positional. and from 10 to 100 points of profit 🙂 and from 200 days to 2000 days.
How does it matters? its a step by step process. if u can make 70 cr in a span of 10 years than it is more than enough
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 ??
Sir,
Thanks for best streatagy.
Sir, It’s confirm 10 point profit after breakout buy or sell? and what is the stoploss?
regards.
Hi Praful,
Yes breakout of support/resistance can give a 10 point gain easily. But you have to be very strict in stoploss. See our other post on risk reward ratio:
https://tradingtuitions.com/risk-reward-ratio-an-ultimate-tool-for-success-in-stock-market/
Sir,
Thank you sir for gives reply soon.
Regards,
praful
Dear Sir ,
you calculated only profit side , but what about losses , you never never earn 10 points daily without loss
Hi Ganesh,
10 point can also be earned by 100 points profit and 90 points loss. We haven’t speciically described any strategy in this article
Very good Excel sheet. I have came across this long time back, it can be doable in principle including the losses, no trading days etc…
I would personally take up this challenge for myself for Nifty futures during 2018 full year.
One thing to consider is the Nifty futures lot value, as it has been freezed to the 100 lots per order, one can able to do as much lots in a session limiting the lotsize per order as 100. Since there is no dearth of daily volume in nifty futures unlike other instruments, with that in mind one can reach a desired amount at the end of the year.
Kudos to you sir,
P.S:- Only need 10 points per day excluding the expenses which turns out to be 12 to 15 points depending on the broker.
Thanks for your kind words Aravind. Noted your point on max number of lots
Can u give us a strategy that will consistently give us 10 points
Hi Paras,
No strategy can consistently give you 10 points, but there are many strategies that can give you 10 points per day on an average basis. Check out few of such strategies with backtest report at the below link:
https://tradingtuitions.com/category/categories/amibroker/trading-systems/
Ive been doing ten points a day but my question is going forward , do u think so many lots will be executed and if not there might be losses , please tell us if anyone has been practising it with success and throw some light on how we can do this with RENKO thnx
Hello,
How many lots will be pretty liquid (sell fast). How many can I buy? Are there other ways to earn along side futures?
Thank you!
Hi,
Nifty futures is pretty liquid instruments. You can trade 100’s of lots at a time. You can short sell options along with futures for hedging purpose
Also, is it possible to make money on the days nifty is going down? Are options good?
Either you can short futures, or buy put options
The articles is quite old now, dated 2016. Now the Initial Capital required would be more. But the concept is very good. Needs persistence to follow the rules. If broken then doom…