How can one become a successful stock trader in India? Is it actuallypossible to earn in Lakhs per month?
Yes! one can become a successful trader and can earn in Lakhs permonth. But the journey of becoming a successful stock trader is not easy(butnot impossible either). Let us Ask ourselves a question first.
If you wanted to climb Mt. Everest. Would you just fly over to Nepalwith no training and start climbing without a Sherpa?
I hope your answer to above question is NO. Then why we will assumethat we can be successful in trading without proper training, instrument, andwithout a help of a mentor to achieve the goal.
Following is some step one is recommended to follow to achieve the goal
Step 1: Access of a trading system which will tell when to buy and sella stock
One could build his own system or he can hire or take an advisoryservice at this point.
Step 2: Prepare a trading plan around the system
How much money will I invest in each entry signal? How much risk will Itake in each trade? How much profit can I expect in each trade? Answering allthis question is important before we can start.
Here is a result of a trading system based on moving averages and thetrading plan around it
How much is minimum margin account needed to trading this system?
This depends on how much risk one is ready to take. As per the systemabove the average risk in 1 lot is around 2k. So in 4 lot, it becomes 2K*4=8K.As I do not recommend to put 2% of the capital in a single trade. So one need aminimum account of 4 lac to trade this system.