Saturday, 2 January 2016

Trading lot quantity

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As you all know, till now I have been trading Nifty intraday with maximum one or two lots for last couple of years. Now after trading with a very small number of lots and having developed tremendous confidence in self by successfully trading for a long time, in this new year I am increasing the quantity of lots by many fold. From this coming week I will trade Nifty options with 10 lots (750). I will trade next few months with this quantity and then decide about increasing it further.

Capital required:  I keep usually double the amount required in my trading account. To buy one lot of in-the-money Nifty option it normally requires around Rs. 10000. So to trade 10 lots, it will require around Rs. 1 lac. I usually keep double the amount, so the required capital will be Rs. 2 lacs. I have my own risk management which I have discussed with you time to time, and I strictly follow it.

Target: I will target 100 Nifty option points.  As you know, in-the-money options move normally half of what the Future price moves.  So if I were trading with Nifty Future, the same target will be around 200 Nifty future points. This is the minimum target that I would like to achieve and if I achieve that it would generate me a monthly income of Rs. 75000.

In next one to one and half years, my personal goal is to reach to the capacity of trading 100 lots of Nifty options with average profit target per month of 150 to 200 Nifty option points per lot, and generate a monthly income in excess of 10 lacs.

I have started working in that direction by increasing the current lot quantity.  I am fully confident and hope for the best.





34 comments:

  1. Great Bro !! May God bless you and i am sure, you will achieve results better than expected !!

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    Replies
    1. Deven

      Nice to hear from you after long time. Went through your blog. Good to see you back in action. Thanks for your wishes.

      URD

      Delete
  2. WOW!! This is very encouraging!!
    My Best Wishes with your, URD.

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  3. Dear URD,
    Its the dream of every trader to develop a positive edge and scale the size of trade to a descent level. You have successfully attained the first part and surely you will attain the second part. All the best for your new venture.

    Regards,
    Dinil

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    Replies
    1. Dinil

      Let's hope for the best. Thanks for your wishes.

      URD

      Delete
  4. Hi Sir,
    Very Best of luck. I know you will reach there. Do you know any trader who successfully trades in such a big lot and are you in contact with ST sir? , he has not started blogging yet.

    Thanks.

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    Replies
    1. Arvind

      Thanks. The comments you see here are from all good traders. Lot to learn from them. The quantity you trade is related to your risk taking capacity and more to do with the psychology. If you are well equipped and comfortable, nothing should stop you.
      Unfortunately, I have no clue about ST sir. Missing him a lot.

      URD

      Delete
  5. Super Uday.. All the very best

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    Replies
    1. Shashank

      Thanks. Tell me, What would be your quantity?

      URD

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    2. Hi Uday,
      Consistent with 4 Contracts (Nifty Futures). Will increase to 6 contracts next month.

      Delete
    3. Very happy to learn that.
      URD

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    4. Very happy to learn that.
      URD

      Delete
  6. Great to hear..i personally blown my account couple of times buying options...was comfortable with futures then after... Anyways i am sure you evaluated all aspects before deciding upon, as usual!

    All the very best.

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    Replies
    1. Rose

      Thanks for your wishes. We all pay tuition fees to market. I don't see any issues with option trading as I discussed, provided you try to trade and not gamble.

      URD

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    2. Dave ji,

      Uf i am not wrong, you are selling options so far.. Why sudden shift to buying options now..

      Delete
    3. Rose
      No sudden shift. I started with selling first and after few months of preferring selling them I noticed one would generate same results while buying them first also. Also capital requirements are much less.

      URD

      Delete
    4. Rose
      No sudden shift. I started with selling first and after few months of preferring selling them I noticed one would generate same results while buying them first also. Also capital requirements are much less.

      URD

      Delete
  7. It's nice to hear about your success. It inspires the rest of us to carry on. Continued success to you my friend!

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  8. Hi URD,

    I am very pleased with your growth as a trader, my wish is also to trade 100 lots...

    Please don't stop blogging once your meet your goal of 100 lots.

    How will you manage your day job with the increased (10 lots) quantity as trading 1 or 2 lots is physiologically quite different as compared to 10 lots...

    ReplyDelete
  9. Shub
    It's all your readers' love and support that keeps me going with blogging. I have learned lot from it and would wish to continue as long as I can.
    If you are following right path you will definitely reach where you wish to be. My best wishes are with you.
    I Will only be trading now during market hours. I will do my work in evening hours as part time.

    URD

    ReplyDelete
  10. Shub
    It's all your readers' love and support that keeps me going with blogging. I have learned lot from it and would wish to continue as long as I can.
    If you are following right path you will definitely reach where you wish to be. My best wishes are with you.
    I Will only be trading now during market hours. I will do my work in evening hours as part time.

    URD

    ReplyDelete
  11. This is showing the confidence in your trading. Also a big motivation for the people following you. All the best in your trading. keep on sharing your thoughts and trades.

    ReplyDelete
  12. Dear URD - It is great you are scaling up. You are a great inspiration. WIshing you all success in this New Year
    rb

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  13. Thanks for sharing your plans. Hope all DP system practioners will be able to emulate your success some day.

    All the best,
    KSG

    ReplyDelete
  14. Hi URD

    Great idea.
    Ideas combined with belief will create it.
    U have both of them!!
    All the very best in reaching your goals!
    And so share how u do it...

    TBP

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  15. Thank you all for your wishes. Hoping for the best.

    URD

    ReplyDelete
  16. Hello URD,

    I am a recent visitor to your blog and like your PA readings and it is really helping me in day trading. Quick question on recent changes on trading with 10 lots. I do not want to if you are making profit or taking little heat.

    All I want to understand is how is your psychology playing when you enter the trade with change in increasing lots ?

    ReplyDelete
  17. Naresh

    I traded with very small quantity for a very long period of time. The reason for trading with small quantity first was to make myself fully equipped with the market moves and build the confidence level. Once my goal was achieved, I then thought about increasing the size. Initially it made me uncomfortable but I handled it. Now I have mentally prepared myself such a way that the big quantity doesn't matter to me at all. One thing is very clear, my system has an edge, so i don't need to worry about what happened with this trade and what will happen to next few trades. If my system has an edge and I properly follow my plan, profits will be there sooner or later. I just need to manage the risk well.

    The story of Chinese bamboo tree may inspire you.
    http://bambootree.homestead.com/

    URD

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  18. You have written what I exactly wanted to hear. Thanks URD for the inspiration link.

    I know you already did your strong base i.e. discipline, following your plan and training your mind.

    ReplyDelete