Trading is often seen as a complex venture, with our own minds adding to the complexity. We tend to believe that simple and easy strategies won’t yield profits, leading us to explore complex methods promising quick riches. After years in this field, I’ve learned that such strategies don’t exist. True wealth is built step by step through disciplined and consistent trading systems, whether simple or complex.
In this article, we’ll explore how you can grow your capital by earning just 10 points a day. While we use NSE Nifty for our calculations, you can apply this to any stock or index of your choice. You can achieve these 10 points in one trade or multiple trades, whether by monitoring news or charts; the method doesn’t matter. We won’t discuss specific strategies for achieving this; instead, we’ll focus on the incredible profit potential of making 10 points a day. For profitable strategies, check our ‘AFL of the Day‘ or ‘Excel Trading‘ sections:
Let’s imagine you have an intraday trading system that consistently earns you 10 points a day in Nifty futures. The lot size for Nifty is 75, and the margin required to buy/sell 1 lot is 45,000 Rupees. So, if you consistently make 10 points a day and reinvest all your returns, your capital can grow 16 times in just 200 days. This means that 50,000 rupees invested could turn into 8 lakhs in a year (considering 200 trading days). Observe your capital’s growth over time in the graph below:
This is incredible, isn’t it? But if you’re solely into intraday trading, you can use MIS orders and save on margin costs. For my broker, the intraday margin for Nifty futures is just 15,000 Rupees. If we recalculate the graph with this margin, it looks like this:
That’s nearly 70 crore rupees in 200 days! Could you ever have imagined multiplying your money to such an extent by earning just 10 points a day? I’ve shown that it’s possible on paper. You can find a detailed Excel sheet with calculations at the end of this article.
Now, let’s return to the mysteries of the human mind. 99% of traders don’t stick to any rules for more than a month. Do you notice a common pattern in the two graphs above? Returns are quite low in the beginning and then spike towards the end. When we see these low returns early on, most of us tend to give up. Discovering a system that earns you 10 points a day isn’t difficult, but the real challenge lies in sticking to it and letting your money grow. Compounding your money is crucial to becoming a successful trader.
It’s not hard to find a system that can earn you 10 points a day, but the real challenge is sticking to it and letting your capital grow. Compounding your money is the key to success as a trader.
Download the Excel sheet from the link below. You can customize margin amounts, lot sizes, and the number of points to estimate your capital’s growth over time.