How can a Trader Invest

Hello friends, you have read my previous post, how can a trade create wealth. In this post, we shall discuss about investing using trading.

Capital required = 50 thousand (If you have less or more capital then it will work according your capital)

Time Frame = 25 years

We shall use Intraday trading smartly to Investment with minimum risk and practically possible in real life.

 You have to open trading with discounted broker. We shall not reinvest in it so we no need any stable brokerage. We need a discounted brokerage for intraday trade who give more margins. We will make out our profit at the end and will invest it in other investing plans.

Trading:

You can easily earn 2 thousand per day by using intraday trading with 50 thousand investment using limit. There is 20 trading session in a month so you can easily earn 40 thousand per month by intraday trading. If we reduce 20 thousand profit from it then also you can earn 20 thousands profit per month. At the end of month, we shall cash out this 20 thousands profit from our trading account and invest in the following investing plan through SIP.

Total Profit = 20,000

1. Life Term Plan:

You should have a term life insurance plan for protect your family. You can buy 1 crore plan with 600-700 rupees per month.

Investment: 700 per month

2. Health Insurance:

If got any serious problem then maybe you’re all saving and earning spent on treatment. You can buy health insurance with 400-500 rupees per month.

Investment: 400 per month

3. Investment in PF:

We should investment in it for safe and secure return.

Investment: 8900 per month

Expecting Annual Interest Rate: 9% annually

Expected Value after 25 years: 1 crore+

 

4. Investment in Mutual Fund:

 For beat rate of inflation we should investment in mutual fund. We can divide our invested amount in 2-3 mutual funds according debt, midcap and large cap funds.

Investment: 10000 per month

Expecting Annual Interest Rate: 16% annually

Expected Value after 25 years: 4 crore+

 So total return from PF and Mutual fund is = 1 Crore + 4 Crore= 5 Crore

So, after 25 years.... You will have Rs.5 Crore cash and 1crore life insurance and health insurance throughout the 25 years.