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Talking about capital management it is the easiest part which you can do.

Assume you have family business are you making 100% profit in that business the answer is NO.
Assume you have Fixed Deposit in Bank are you Earning 100% Return on capital the answer is NO.

Then why you want to follow GET RICH QUICK SCHEMES these are not for you stop it.

HOW PRO TRADERS MANAGES THEIR CAPITAL

I as a trader set my target of 2% on capital employed

Example i have 10,000 as a capital how will i use this

Assuming Stock Market Opens 4 Days a Week
It will open 4*4= 16 Days in a Months
And in a year 16 days * 12 Months= 192 Days

My target for daily is 2% i.e 200 rs Daily

In a whole year how much profit i have made 200 profit daily *192 days in a year market opens = 38,400

you made 38,400 profit in a year When you have started int ital capital is 10,000 Now it is 10,000 capital + 38,400 Profit in a year = 48,400 total capital after a year.

Next year you have total cap 48,400 target remains the same 2% daily nothing

i.e is if you have 2% target on 48,400 i.e 968 rs daily

Consistently you have made 968 daily * 192 days market will open = 185856

After 2 years your total capital is profit + 2nd year starting capital i.e profit of second year 185856 + 48400 = 234256

Now look back 2 years before you have capital of 10 k now you have total cap of 234256 after 2 years calculate increase in capital in a year.

When you are doing an FD in a bank are they giving you this much return The answer again will come no

because they take money from you and invest in stock market only money which can grown in whole world is stock market

Be mature invest wisely and use your money wisely don’t be GREEDY.

Ajay Kumar

http://innovatorsandyou.in

Ajay Kumar is an entrepreneur who started his career early at age of 16. He started his own company at age of 21, made it a success. He has the ability as excellent stock market analyst with technical knowledge of the subject; Ajay can help you save a lot of money which you give the market after making your losses. He is the only one who has made INNOVATORS AND YOU as the best and the fastest growing institute for stock market in ASIA. Ajay Kumar is an MBA Professional with vocational experience in financial analysis. He is Expert in proceeding placements and imparting workshops. Active orator in share markets, micro/macro economics and stock analysis. A wordsmith in writing articles. Certificate holder in various modules of top financial institutes. Proficient in providing knowledge of financial modeling, financial derivatives, financial markets, ratio analysis, corporate valuation, mutual fund and much more.

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