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  #31 (permalink)  
Old 03-04-2017, 03:39 PM
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I am thinking to increase my trading capital to 15 lakhs out of my own money, should I go for loan of about same amount?
I can get upto 40 lakhs loan.
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Old 03-04-2017, 09:04 PM
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Originally Posted by novicetrader View Post
I am thinking to increase my trading capital to 15 lakhs out of my own money, should I go for loan of about same amount?
I can get upto 40 lakhs loan.

Hopr you have not only profitable strategy , but with minimal drawdowns

In case drawdowns are large, your positions get squared off and that is invitation to disaster on borrowed money.
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Old 03-04-2017, 11:06 PM
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Originally Posted by Ajax i4u View Post
Hopr you have not only profitable strategy , but with minimal drawdowns

In case drawdowns are large, your positions get squared off and that is invitation to disaster on borrowed money.

drawdown is capped at 6% max
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Old 04-04-2017, 12:03 AM
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Time is also of the essence here Trade duration (with drawdown time). That's if you are considering loans with a monthly EMI commitment. Also how much you would be comfortable to deploy at a time &/or no. of trades you can handle at a time (Remember your interest cover has to come from the amt deployed). What's the interest btw?
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Old 04-04-2017, 12:07 AM
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Originally Posted by devdas View Post
I borrowed money to increase my trade size, because all borrowed money is usually blocked against options written. Contrary to belief that option writer's enjoy "easy" ( loosing ) money, i decided to borrow after i sustained on 1.75% p.m. on (borrowed money) blocked margin.

Ya This is what i realized that the return on blocked margin is paltry. Many think it's a no-cost way of making money. Is this borrowed money from broker you're talking about?
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  #36 (permalink)  
Old 04-04-2017, 08:38 AM
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Originally Posted by kkseal View Post
Time is also of the essence here Trade duration (with drawdown time). That's if you are considering loans with a monthly EMI commitment. Also how much you would be comfortable to deploy at a time &/or no. of trades you can handle at a time (Remember your interest cover has to come from the amt deployed). What's the interest btw?

Nice point caught,kks. Time is vital for draw-downs too and the sequence too.My trades are mostly intra, positionals if any are few and far between, so time would have minuscule effect on that front. As far as no of trades handled, they can be few hundreds .
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Old 04-04-2017, 12:43 PM
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Originally Posted by kkseal View Post
Ya This is what i realized that the return on blocked margin is paltry. Many think it's a no-cost way of making money. Is this borrowed money from broker you're talking about?

Banks were easily offering PL in excess of 40+ L given my secured job. Even interest ( 1% ) levied was offered on reducing balance. But main glitch in this is reducing capital due to emi deduction. This could easily impose reducing trade size also if i am considering trading with only borrowed money ( and off curse i will not fool myself by infusing my own money on later stage ). So equivalent "usable" capital is just half which indirectly calls for generating more than 2% on half of borrowed money through out the loan tenure. Which perhaps not viable with 1.75% of expected return.

So i took the loan from fiends-n-family which were too happy to offer me at 1% without any emi and on same guarantee of my secured job.
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  #38 (permalink)  
Old 05-04-2017, 09:07 PM
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Ram Ram JI Friends came here after a long time nowadays lil bit busy and not able to do trading need help of you all I want to know a stock in which I can put 5-10 k per month as mkt is at all time high so dont want to put all money at one go Thank you In advance for all the help sorry for posting at two places
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