I was looking at some excel sheet calculation . if you start with a capital of rs 1 lakh and trade only tata steel futures and keep on compounding 30% each month you will make over rs 5 crore in 24 months/2years. Now i know this is in any way not realistic because making 30% month after month is highly unlikely and 99% chances are bankrupting the account but just lets assume if you are only trading tata steel futures which requires you to have rs68,000 (approx) for trading 1 lot. 1 lot will give us 1000rs /profit loss on each point so you will require to gain 68 point each month to make 100% percent return and to gain 30% you would require 20 points each point to make 30%. but i don't think compounding will work here because of the leverage provided by nse. Suppose the first month you gain 30% on rs 68,000 so your total gross profit will be rs 88,000(lets exclude commision and tax). but the problem is in order to compound you need to trade more than 1 lot on this rs88,000 to compound but you can't trade more than 1 lot until you reach rs 1,36,000(2 lot) because to trade 1 lot u need = 68k and 2 lot 68 x 2 = 1.36 lakh. So how is compounding possible ? when you have to make 100% return on 68k to trade 2 lots
compounding 30% each month on 1 lakh
130,000 24,706,453
169,000 32,118,389
219,700 41,753,905
285,610 54,280,077
371,293
482,681
627,485
815,731
1,060,450
1,378,585
1,792,160
2,329,809
3,028,751
3,937,376
5,118,589
6,654,166
8,650,416
11,245,541
14,619,203
19,004,964
compounding 30% each month on 1 lakh
130,000 24,706,453
169,000 32,118,389
219,700 41,753,905
285,610 54,280,077
371,293
482,681
627,485
815,731
1,060,450
1,378,585
1,792,160
2,329,809
3,028,751
3,937,376
5,118,589
6,654,166
8,650,416
11,245,541
14,619,203
19,004,964