I was wondering how do I manage my life style post retirement as I will reach the winter of my professional life. Initially, it was just a thought but increasing cost of living and unplanned expenses in Mumbai made me think seriously for last one year or so.
Biggest flaw in my personal financial management
I depend on endowment plan f life insurance, PPF and fixed deposit with a very small exposure to equity market through mutual fund.
Fallacy of investment world
The biggest fallacy is return from all investment including rental income from property is negative with respect to actual inflation. This means I need to add fund to my account s that fund stays till the lifetime of my self and wife.
The only solution is to have some positive cash-flow to adjust against the dent created by inflation.
I found trading and investment is the only method which has highest probability to achieve my goal which is totally flexible on time and effort. Here, I can earn based on my capability, experience and psychology.
Why day trading?
I can trade in the active market on equity and commodity. But,trading is a risky venture and 90% people do not make consistent profit from trading.
Plan to manage day trading as business
All business needs investment and loss is one of the possible outcome. My plan is to consider trading as a business where my losses will be considered as investment to self learning to become a better trader.
I will trade on selected 3 instruments (Nifty, Banknifty and crude oil) based on my research and back test result. I prepared a simple trade plan for these instruments . I will also set up a SIP based investment plan in direct equity market for long term wealth building.
I will take 100 trades on each instrument starting from 1st July 2019. I will build and share my trade plan in my blog daily. Will update trade result post market hour.
If I do not make loss in these 100 trades, i will just double my deployed capital.
Target - 6% to 8% per month post all expenses.
Will it be possible that I will loose all money by wrong trading?
This is the first question my wife asked me. She believes I might lose money in order to protect some loss due to inflation. Her concern is genuine .
We discussed and decided to make some effort to see feasibility of my idea. We agreed to set up a training budget and opened two accounts for trading.
I studied for several months, spends money in learning from some so called experts and did some trading. I will share with you the details of my training and those are just of money.
Tools to be used
Indicators
Click the link below to know trade plan for 1 st July'19 and how I mange my trade in a total hands free mode.
Day 1 of 100 day challenge
Biggest flaw in my personal financial management
I depend on endowment plan f life insurance, PPF and fixed deposit with a very small exposure to equity market through mutual fund.
Fallacy of investment world
The biggest fallacy is return from all investment including rental income from property is negative with respect to actual inflation. This means I need to add fund to my account s that fund stays till the lifetime of my self and wife.
The only solution is to have some positive cash-flow to adjust against the dent created by inflation.
I found trading and investment is the only method which has highest probability to achieve my goal which is totally flexible on time and effort. Here, I can earn based on my capability, experience and psychology.
Why day trading?
I can trade in the active market on equity and commodity. But,trading is a risky venture and 90% people do not make consistent profit from trading.
Plan to manage day trading as business
All business needs investment and loss is one of the possible outcome. My plan is to consider trading as a business where my losses will be considered as investment to self learning to become a better trader.
- I will make a plan before market opening and trade the same plan.
- I will trade with predefined risk per trade. Risk is the only entity which I decide risk in this business.
- I will work with a minimum risk to reward ratio
- My winning probability should be within 65% to 72%.
I will trade on selected 3 instruments (Nifty, Banknifty and crude oil) based on my research and back test result. I prepared a simple trade plan for these instruments . I will also set up a SIP based investment plan in direct equity market for long term wealth building.
I will take 100 trades on each instrument starting from 1st July 2019. I will build and share my trade plan in my blog daily. Will update trade result post market hour.
If I do not make loss in these 100 trades, i will just double my deployed capital.
Target - 6% to 8% per month post all expenses.
Will it be possible that I will loose all money by wrong trading?
This is the first question my wife asked me. She believes I might lose money in order to protect some loss due to inflation. Her concern is genuine .
We discussed and decided to make some effort to see feasibility of my idea. We agreed to set up a training budget and opened two accounts for trading.
I studied for several months, spends money in learning from some so called experts and did some trading. I will share with you the details of my training and those are just of money.
Tools to be used
- Gann sq9 calculator
- Daily Panchang for NSE
Indicators
- 20 period moving average for three time frame
- RSI 14
Click the link below to know trade plan for 1 st July'19 and how I mange my trade in a total hands free mode.
Day 1 of 100 day challenge
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