Friday, 2 December 2016

How many Nifty points do I need to make monthly for living?

This is the most frequent and common question that I have been asked whenever I interacted with other aspiring traders.  In fact, frankly speaking, I was also looking for the answer to the same question when I started trading.  There were different answers to it, some said 200 points a month from trading Nifty is considered good for making a living out of it, some said 300 points, and some even said 100 points.  I thought no one exactly knew how much.

Later after some time, I realized it is not necessary to make 100 points or 200 points per month per Nifty lot for living.  I can make a living out of it even with lets say 10 points per lot per month.  Yes, you heard it right.  Let me explain.

Many traders pay so much attention to their long-term objective of becoming a professional, successful trader or expanding their trading account in the fastest possible way.  In that process, they make very little or no effort to figure out how exactly to achieve this in a more realistic way.  I was aware of this, so did not do that mistake.  Now, to achieve the goal of making a living out of trading Nifty, I thought if I set the goal of earning as little as 10 points per month per lot, since it sounds very little, it will be very easy to achieve it successfully and once I achieve it, I will be able to do a lot better and finally will be able to achieve the long term objective of becoming a professional trader.  I started doing some calculations like this,

Net 10 Nifty points per lot per month = Rs. 750 per month on a capital of Rs. 10000.

Then I calculated my yearly earning like this,

Rs. 750 per month x 12 months = Rs. 9000 a year.

This way if I calculate the earning on a capital of 12 lacs, it will be like

Rs. 9000 per year x 120 lots = Rs. 10,80,000 a year or Rs. 90,000 a month or roughly Rs. 1 lac a month.

My eyes popped up when I realized even though I make this tiny profit of Rs. 750 per month per lot, I will be able to double my trading capital almost every one year.  Then I calculated further and got amazed by the results.  It turned out that trading capital of around Rs. 12 lacs will be able to generate a monthly income of Rs. 1 lac if I am able to make as little as 10 points per lot per month. Furthermore, I really don't require this huge capital (not really a huge nowadays) at all for trading.  I will always have an option of using shares, gold, liquid funds etc as a margin for my trading and real requirement for the cash will be very less.

I felt I needed to understand the markets first, get proper knowledge of trading and acquire some experience by simulating trading.  Once I do that and get equipped with all the knowledge, I can start with a very little trading capital of Rs. 10K.  My objective is to only make 10 points per month, month after month consistently.  I know if I am able to do that, within next few years of time I will be able to earn Rs. 1 lacs per month on my own. After that nobody will be able to stop me and only the sky will be the limit for me as a trader.

I decided to act on this.  I made an effort to understand the trading and markets.  The learning phase took lot of time.  It was very difficult to find a trading mentor those days. I had to do lot of trial and error method.  But I did not lose patience.  I kept on working on it until I found this wonderful DP method of trading.  After spending few years on it and finally achieving this goal of earning 10 points per month, I was confident enough to take up the trading as a source of living and I could quit the handsomely paid 9 to 6 kind of a day job.  

Now tell me, isn't it possible to make 10 points per month   You would probably laugh at me and say this is what I can make in one trade alone, actually more than that.  Am I right or wrong?  It is not necessary to trade only Nifty future or options.  You can set your goal the same way and can choose to trade your favorite stock, commodity or currency.  You can even pick the trading system of your liking, be it mechanical, indicator based or any other discretionary system.  You can also choose your number of trading hours. No need to be a full time trader.

Start small and then build up.

Go ahead and start working on achieving this goal. If you are able to earn 10 points per lot per month consistently for 9 consecutive months, you can contact me.  I will feel proud to associate myself with you and if required, help you get more funding for your trading. 


  1. In SHILPA SHETTY Style --- Ye post to superrrr se uperrrr hai :)
    Nicely explained will boost the confidence of many new traders.
    Thanks URD

  2. Great post, URD.
    I feel I am still in same boat wondering how many Nifty Points can be made in a month.
    I need to change this attitude.
    If I want to move on to the next level of my trading career, I will have to come out of that amateurish mode.

    Sunil Manohar

    1. Sunil,

      Profits are profits. They are never little or more. Key is to start with the small. Mentally, small targets are easier to achieve. More importantly, if you start seeing your trading account in green every month, month after another, you will be a different person all together. This 10 points of profit or even less than that will become much bigger once you achieve that confidence by seeing your account in green consistently.


  3. Dear URD,
    Thank You for a super article. I will refer this, whenever I feel down to inspire myself.


  4. Very nice Uday, My confidence boosted.. Thanks

  5. Nice.
    Sir but why did u consider only Rs 10K as capital for Nifty.
    Its not same as keeping 50k or 100k in actual.

    1. Anon

      Check out the broker's margin requirement for cover and bracket orders for Nifty future in this link. We first think about SL and if it permits then only we go for the trade. With this much discipline, trading CO/BO is possible.

      You can also go for buying options and slight out-of-money or in-the-money strikes you will be able to trade with that capital.


    2. Thanks sir. I forgot to mention it earlier if you were considering leverage.
      Now its clear.

  6. Interesting Numbers. Good one

  7. Very well articulated URD .. though provoking indeed ..
    its all a mind game, very important to have milestones.

  8. Nice article uday..

    goal is to start small,make small in the early phase.

    once consistency,proper trading habits,proper reading of market happens..then it becomes very easy to scale up little by little..

    thanks for pointing that even 10+ pts enough in the early stage..i will work along these lines..

    hope i will become your first funded trader :)

  9. Thought provoking message, reading again and again.. Every time getting new message.. As u ended, establishing Consistency is the big thing.

  10. Thanks dave for a nice article...Your post says about how important consistency is

  11. Trading with 10k amount in one lot Nifty futures is like blowing account in 12 to 13 consecutive losing trades with a SL of 10points in Nifty futures ...And consecutive 12 to 13 losing trades is possible ...

  12. even though I agree with your trading methodology...I have to disagree with u rational of setting such a low amount per lot for trading...I think u assume no loss at all in our trading...otherwise it's not at all possible....unless u allot at least 1.5 times the minimum margin as the amount per lot

    1. Unknown

      I am comfortable with that much of trading capital. For my losses I keep separate fund which generates interest income.

      I buy ITM Nifty options and for that Rs. 10K per lot is enough. I keep Rs. 10K to cover for losses in the liquid funds to generate income instead of keeping all 20K with the broker.