Few weeks back has started a series of posts on Market Manipulations on stocks like Ushdev International,Jaybharat Textiles and Real Estate which was later caught by SEBI. Now even RBI has put up an inquiry on Tayals the promoters of Jaybharat and Bank of Rajasthan.
Check the posts here --- Market Manipulations
Starting today would be a new series of Posts on Investors Expectations/Myths etc etc.
There are many times where many friends/readers and acquaintances ask me the question.
How much returns can i make out of a 50k or a 1 lakh portfolio ???
--- > Although many people in this range would be called a very small investor but they have the highest set of expectations.
-- > One of the questions which i generally ask is ---- How much do you expect to make out of it ?
The majority of the answer is --- Well i should make at least 5k-20k out of it every month. Some are even looking out for 100% returns in the next 3 months itself.
If thats not enough the same client lands up reading the net and subscribing to various ADVISORY SERVICES which promise 50-100% returns a month, 400-800 points in Nifty future, 50-200% in Nifty Options and the minimum capital requirement being only 50k to lure the innocent dreamers .... All these sites stay in the business till the going is good and CROWD of Fools continue to come in wtih no Research or Discipline.
I hope nobody from the readers feels the same or if you have been through something like these plz post in the comments or mail it to me noorrock2002@gmail.com !!! If yes then i would like to clear this ROSY PICTURE !!
Lets have some points.
1) Many sites as well as traders have been dreaming of 20-100% returns a month.Be it with options or Nifty futures or FNO or Penny Stocks. Is it possible maybe YES but that would need one to be a very very DISCIPLINED TRADER and professional in approach. And somebody who could generate 100% a month would never be advising ( Personal loan is available at 2 % a month,brokers leverage at 2 % a month ) ....
( I dont 🙂 we are happy with 6-15% a month with a 65-75% accuracy !!! )
2) As i said with 50k people wish to make 5-20k minimum which is a minimum of 10-40% a month !!.Taking an average of the expectation of 20% or even 10% your money should be 3 to 6 times in a year.
3) Wow !!! if thats possible then with 10 lakhs if you could make 3 times in a year with so much of ease then WHY THE HELL are you holding a JOB. Take a 10 lakhs rupee loan and get a 20-30 lakh per annum job or close all your businesses
4) When i say this people say i am ready to lose 50k but i cant risk 10 lakhs ..... So if one wants to speculate any amount is less but yes if you are looking at the future its better to learn the ropes with small amounts 🙂
5) Stock Market Investment/Trading is one of the most serious businesses which requires lots and lots of discipline and patience !! Also this is the only place where you can generate multifold returns with the least amount of mental and physical strain provided you work smartly for it:) !
6) This is the only business which requires NO experience,No Formal Education, No Fixed Hours , No compulsions and in cases Negligible Capital ( Leverage/Futures ). Thats the reason majority of the people fail as nobody takes it as a serious business and educates themselves. This is the only business where you keep learning till you are in it.
7) A very important line to all Speculators trading without any Knowledge ---- If you could make hell lot of money CONSISTENTLY ( flukes do last long in a bull market ) by just Calling up your Broker or punching in a few keys on your keyboard – You are wrong. !!!
8 ) So the bottomline is if you want to stay in this BUSINESS of Businesses then make an effort to Learn !! Research and develop a discipline,patience and Conviction else market gives a lot of wounds alongwith a exceptional experience 🙂
There are no Short Cuts to making money in the Market 🙂 ------
Some Disclosures 🙂 as I am also an Advisor 🙂
1) The advisory services which we provide ( www.analyseindia.com ) is for guiding the traders/investors and brokers for short term to long term.
In our short term calls we look towards achieving a 6-15% gains in a month without any leverage or futures trading !!! Minimum Portfolio size is advised is 2-2.5 lakhs.Higher the better so your cost to advisory services is minimal.
Why i don't allow less then 2 lakhs is because even if i generate calls that could consolidate to 15-20 % ( minus all expenses and average over a long period as some periods could be okish) returns a quarter it would not be a big sum in absolute terms , as well as the client may be tempted to use leverage which may kill his discipline.
Also i believe one should not be giving more then 10% per annum of portfolio as advisory fees 🙂 if executing the trades themselves… Anything above that is stupidity or good selling or dreaming!!!!!! or you fooling yourself.
One can also look for our customized services for HNIs. For more call me 🙂
Even in our PMS we are looking towards 30-50% annually with capital preservation as more important and looking towards Wealth Creation in the long run. The minimum size is 10 lakhs ideally 25 lakhs else it does not become financially viable for us.
We train people in technical analysis to make them independent also they become ambassadors of our product which helps us grow without publicity or shouting 🙂
ANNOUNCEMENT :
The blog would soon be changing DESIGN 🙂 .... Migrating to a self-hosted wordpress blog with lot more features.
Best Regards,
Nooresh
09819225396
March 10, 2010
If your really so good in your so called analysis you would not have been running around india trying to teach technicals at few thousands.
And you really making money why you need to run pay sites?
Isnt it hypocritical?
Anyway writers and technicals are never good traders and advisors in there life.
So best option for them is to keep on giving comments on world.
I hope new investor stay away from people like you.
March 11, 2010
nooreshji, I like ur post & point to point approach. I too providing intraday & positional calls via my free & paid both services.
I have given profits upto 100% a month sometime (stock future) but this is not a kind of regular income or fix income & depends on market conditions. there r many traders/investors made beyond 100% in in last 1 year due to sharp recovery from 8000 to 7000. many stocks have given +500% on investment & +100% in stock future position of 1-2week.it happens due to lot size. in last two calls we made near 50000 profit by taking 1-1 lot of DLF@292 booked@322 & suzlon @73 bookd@82. u can check both calls at my blog http://www.marketbuzztoday.blogspot.com
March 11, 2010
Very good points mentioned by Nooresh brother. Everything has some sets of rules so obviously equity market will also have. One should not trade on equity market emotionally. Trade will strict rules and follow technicals properly. If you are ready for profit one should also be ready for losses. Nooresh you are doing great job here. Keeo it up 🙂
March 11, 2010
Hi Nooresh,
let me congratulate on this eye opener for small investors who really need it.
I have seen many advisors but you are only one who talked practically and clearly. There are many (most of them) to lure small investors.
You wrote this piece of advice is such clear way that it really touched me, though am a small investor in market for past 3+ years and I know all things you wrote here.
Thanks a lot this advice who will help many of investors.
March 18, 2010
Hello Nooresh,
The points which u hv narrated is correct, i m small investor. I learnt the same after losing considerable amount of money in commodities market.
There is also other things that you have missed out, not to believe rumors, during intraday calls its not necessary to attain exact target and need to watch international market (if comes for commodities and nifty futures trading)…
Please let me know ur thoughts on this…
Regards,
Damodharan N
damodharan13@gmail.com