How to make 50000 a month with online trading?

[ramesh151]

See this advt in newspaper

Make 50000 pm using our proven online stock trading system.meant for medium and high capital investors.

I had a chance to find out.

When asked about "How much capital do we need to make 50k a month?" The answer comes vague. He starts saying it depends on your psychological make up and how you trade to minimise losses.
wHEN QUESTIONED ABOUT PROVEN ONLINE TRADING SYSTEM, the guy says I dont use any software, just some rules only.
If your system is so good and tested,proven will it work for me? He is hesitant. It may or may not. He is not sure.Not confident.

FIRST THING
sEE HOW the capital required varies based on your ability to make good profits with less losses.
Each individual thinks different when exposed to realtime fear and greed situations-hence his net gain varies.

How much capital you need depends on your win-loose ratio.
ExampleSuppose you win with a gain of 10% and you loose with a 6%, then your net gain is 4%.
Assuming equal positions, with a 4% gain of net, you need a capital of 12.5 lacs.
suppose you win 6%, and loose at 5%, your net gain is 1%.
With 1% net gain, you need a capital of 50 lacs.See ultimately what counts is how much net gain you can make.
PMS managers and tech analysts tend to make between 3% and 4%. a month.
The summary is just one thing.
If you loose any bit from your capital, you are out of the game as unfit.ONLY MINIMUM LOSS LESS THAN 2% IS ALLOWED.
Online trading is just taking advantage of price fluctuations,
If you trade stocks without liquidity and volatility you are gone. trading trends is what makes you rich. It is possible only with patience,descipline, and minimal loss.

Trading system
You need to have simple rules.
use minimum number of positions, dont add to loosing positions,use a low brokerage broker(reliance money)
cHeck if the stock you selected has potential based on past behaviour to make the 10 or 20% gains you dream of.

Real big profits are possible with long term trading.
in long term only good stocks with high Eps growth appreciate in price.
Solutions

1)Even trading based on a simple support levels formula in Amibroker can give you good profits.
2) Trading with JIM bERG VOLATILITY formula can yield good results.
nOW DONT ASK ME WHAT IS AMIBROKER?

Success stays far away from
complacency(lazy),arrogance(overconfidence and no effort), comfort(want to relax,not willing to go extra mile).
Lack OF INTEGRITY-making promises with no will or intention to keep them.
Trading a 5 SMA crossover of 20SMA can yield good gains.
Identifying trends and playing them early is a useful way.
IDENTIFY TREND, CONFIRM TREND, ENTER AND EXIT WITH PROPER TARGET AND STOPLOSS is the solution.

Your focus to minimise loss and maximise gains,
your descipline to make a trading plan,test,retest,perfect
is all that can help you.

[ramesh151]

You can do it by trading nifty call options or put options.

I have generated a nice article but the site of this forum lost it when i tried to save it.
it happens often and my time is wasted in that.
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frst learn A B C of trading
A is here identify support and resistance
http://www.tradingacademy.com/lesson...s20071005.shtm