While interacting with beginners via zoom talk presentations in last few weeks, one of the major issue that came up was about initial trading capital. The SEBI has revised the Intraday margin/leverage rules for traders.
I have been instilling confidence in retail traders to not worry on capital, just focus on strategy execution. Even with small capital base of Rs.8000 – 20000 one can start and build up capital over and above it.
I have been mentoring on definitive day trading techniques to generate better returns on low capital. And I again say, No need to keep putting large capital.
When your capital base is 5000 – 15000, then you need to be very clear with your strategy and instruments that you should be focusing on.
For intraday traders best instruments to trade with low capital are :
Cash Equity segment (One can start with Capital as low as Rs.2000-5000).
Nifty, BankNifty Weekly Options (Buying Only) – (One can start with Capital as low as Rs.8000-12000).
Commodities Intraday trades: Goldmini, Silvermini, Natural Gas. (One can start with Capital of Rs.18000-25000).
How to build capital steadily from small initial capital?
A capital building framework that I ask beginners to follow is that you should pull out or withdraw your initial capital at least twice from the profits that you generate.
Let me explain with an example:
If your initial capital was Rs. 10000.
Then as soon as you accumulate 3X of this (i.e. Rs.30000) with your daily profits then withdraw your initial capital of Rs.10000.
Then keep trading with Rs. 20000.
Again when you reach Rs. 60000 with daily profits then withdraw Rs. 20000.
Now continue trading with capital of Rs. 40000.
Regular withdrawal of Profits gives immense confidence.
In initial days it also helps in balancing your mind against over-trading and over-confidence.
To succeed in long run a well-balanced, calm mind is necessary for intraday trading.
Your mind gets conditioned and Mapped to a trading system with proper money management.
As a part of mentoring exercise, I have been explaining the trades with proper strategy implementation via zoom sessions on how right trade selection strategy along with proper Risk-management delivers phenomenal results.
(Take time to check following videos which will definitely instill confidence in beginners to follow right steps in a disciplined manner to generate consistent returns on low capital.)
Note: Beginners who want to Learn and Master one of the best way to Interpret Price Action to Improve Accuracy and get amazing Risk-Rewards on trades, connect with us.
- Become expert in picking within 10 secs the highly accurate momentum trade setups.
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- Get Mastery over techniques of picking Accurate Intraday Option Buying trade setups in Stocks, Nifty and BankNifty.
- Get Mastery over Picking Intraday Momentum Trade setups in Natural Gas, Gold, Silver, Crude Oil, Copper, Zinc etc.
Yes, learning is the only key to succeed in business of day trading.
A good mentor acts as a catalyst in helping you shorten your learning curve. Saves precious time and money, gives you confidence to pursue trading without fear of losing money on trial and error methods.
If you are really serious about succeeding and gaining consistency of profitability in Intraday trading, then connect with tradvantage academy for Training and Mentorship on Powerful Day Trading Techniques.