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.