In Positional Trading few fundamentally good stocks are shortlised and positions are made in them on the basis of Technical Analysis
In My model I do Positional Trading in Top 10 NIFTY company with fixed target & I am ready to adjustment like (averaging or call writing etc ) as per the condition,Holding period can be one day,one week or few months.
I never keep more then 6 open position at a time & never invest more then 1/6 th in a single Trade while averaging I cross this limit but never do averaging more then 2 times in any stock. This Model given 40 to 100 (%) return in last 19 months depending upon the usage of Margin Trading Facility and Trading activity
For previous year Performance sheet click this Link
Let’s understand this Model with an example, suppose MR A is having 1 Lakh rupee and he wants to starts his Stock Market journey, I will suggest him to follow the under given Steps: –
- Open a Bank FD account or any Debt instrument where he can get secured return (7 to 9 %) per annum,
- Raise an OD limit against the same Fixed Deposit or Debt Instrument (usually one can get 90 % of the security),
- Now divide this 90 thousand into 6 Parts (15000 X 6),
- Shortlist some fundamentally strong company as I have shortlisted NIFTY Top 10 Company for Positional Trading
- If you find Trading opportunity in these stocks deploy only 1/6 part of your capital (15000) and raise remaining 45,000 from Broker under the Provision of MTF
- This Model has given us 40 to 100 (%) return in last 19 months depending upon the usage of MTF & Trading Activity,
- Please Check the Below given Performance Sheet & Comparison Sheet
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Right now I am having open Position in Poly cab, HDFC Bank and L&T
Booked Profit between Jan-1(2023) to 31 Dec-(2023) #76379
Booked Profit between Jan-1(2024) to till date # 27818
Unrealised Profit in Open Position # 544
Last 7 Month Performance Sheet
What is MTF or Margin Trading Facility?
When you use certain amount of yours and raise remaining part from Broker this facility of Fund arrangement is known as MTF and Broker charge interest on the sanctioned amount (interest rate is usually between 9 to 15 %) it all depends upon your Broker and the Plan you are having.
Last but not least never forget leverage is a double edge sword if you don’t how to use it then its very dangerous and you can’t expect same amount of MTF on different stocks, it keeps on changing as you change the category of Stock
