The capital required for trading depends on what type of market you are planning to trade, what your trading strategies are and how much risk you can take. In this blog I will tell you how much capital is required and what kind of market is your investment.
- Day Trading: In the day trading in which you have to buy your position today and sell it today and it is necessary to sell it on the same day. To earn good profits in day trading you need big capital. Most day traders start from ₹25000- ₹30000. And some traders enter the market with this large amount as there is a loss in trading, hence they keep their backup.
- Swing trading: In this trading, traders hold their positions for a few days to a few weeks and they wait for a nearby breakout or breakdown of a swing. Swing trading will be better to do in selling because you get the advantage of premium shrink. Your position will be held for so many days, it will be decay this s the only disadvantage of buying. For selling you will need capital up to Rs 10 lakh. For normal buying, it can be done from Rs 25000 to ₹ 40000.
- Position Trading: If you have to take your position for a longer period of time like for a few months or a year then such trading is called position trading. If you invest more money in this trading, you will get more profit. You can easily make good profits from Rs 1 lakh to Rs 10 lakh. There is not as much risk as day trading or swing trading.
- Options Trading: It is a bit risky, this is my personal experience. For option trading, you can start option buying from ₹ 15000 to ₹ 30000. To earn profit, you will need more capital for option selling because you will sell a single lot for at least 1 lakh to 1.5 lakh Rupee will be required. Capital depends on your lot size. And it depends on your strategy and how much capital you require. Option trading should be done only after gaining knowledge as I have said earlier that it is very risky.
There are many other types of trading like forex trading, cryptocurrency trading, and many other types of trading. If you want to know about other types of trading then tell me the details in the comments. I will prepare the article soon. Whatever trading you do, the common thing among all is your risk management. You should take as much risk as the loss will not affect you. If you also want to do trading and you are completely new then first of all you should gain knowledge of the share market. Then there are more websites for virtual trading on the internet, do virtual trading there, if you are successful there, you will also get success in trading with real money. If you like this article ‘Capital Required for Trading’ of mine then please comment and tell me the details.
Nice article