15 % gain in options per week -possible?

Some times when you play with numbers, it gives you enough leeway to dream. I started to calculate how much the investment will grow if we can make 15% gain per week trading options.

15 % per week in options is possible if you start with small amount of money but hard to replicate if your trading capital is huge.  There are lot of opportunities every week and 15% is  attainable if you work hard and follow discipline.

Starting with $1500, if you can make 15% every week for a year (52 weeks), the compounded annual return will be ...its a staggering number ... hold your breadth...$2 million dollars.. yes it is $2 million !!.

So i'm starting out with the low capital base of $1500 and venture out to the journey and see how far can we go from here.

I'll post my trading from Monday (5th Jan ,2015)....

Welcome to the adventurous journey toward million dollars...

Trading Rules

Rules of trading (mostly options trading)


Here are the rules to be followed....

First two are from famous Warren Buffet quotes

Rule No 1: Never Lose money 

Rule No 2: Follow Rule No 1

Rule No 3: Don't invest more than $200-$300 per trade (should not be more than 2-5%of your trading capital)

Rule No 4: Always remember to take  profits often (and don't let it to run thinking that you'll get more gain. sometimes the trade you sold may  go multiple times higher, remember that there is always another day)

Rule No 5: On options expiration day, limit your trading to 1% of your trading capital ( if you are trading the weekly options which expires the same week)

Rule No 6: Never buy a stock when it opens with a huge gap.

Rule No 7: Buy on a break out (look for stock which crosses previous day high or goes below previous day low. It may be a false breakout, look for volume and have a tight stop loss)

Rule No 8: Choose highly volatile stock for trading options (which moves more than 10%in a week) and trade along its side . 

Rule No 9: look for a trend before buying . (If the stock is in a uptrend, always initiate call buying when it gaps down or down 5-10%. have a tight stop loss)

Rule No 10: Stop trading for a week if you lost all your trades for consecutive days. Sit back relax, learn ,analyze and understand why you lost it. Don't fight with the market. Don't put blame on market makers or economy or anything. Its only you , the main reason for the loss of money in trading.

Rule No 11: Take time in a day for couple of hours (preferably before market opens and at the end of  day) and look at the charts and analyze. Work hard. Nothing comes easy.

Rule No 12: Remember that we can't always have a winning trade. The main goal is to keep your loss to as minimum as possible. There is a saying , keep money for living another day.

Rule No 13: If you have a huge gain in a trade (Say more than 200-300%). Take some percent of money from the profit and keep in a safety net.

Rule No 14: Access at the end of every week , how you've performed. Take actions and try to learn. The stocks market teaches you humility, never fight the market.

Rule No 15: Strictly follow Rule 1 & Rule 2.


Happy Investing!! Happy Trading!!