1 Lakh से 1 Crore Stock Market से कैसे बनेगा? - YouTube

Channel: Vivek Bajaj

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How much time do you need to convert 1 lakh to 1 crore? If I ask you how much time do you need?
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We can convert 1 lakh into 1 crore in 1 day. You need 1 lakh to buy the equipments to plan a heist
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you can go to a bank for a heist. You can even earn more than one crore. The more you are ready to take a risk
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There's a higher possibility of you getting a higher return. But let's talk realistically, we cannot heist a Bank
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that is someone else's job. Let's not do it, our job is to think straight. If we talked about realistically
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How much time do you need to convert 1 lakh to 1 crore? Anything between 2 to 10 years
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It depends on how much CAGR are we are generating on the 100000. C A G R
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compounded annual growth rate. It is very important to understand the concept
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we do not consider this on individual level but the bigger Institutions definitely consider the CAGR
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it means how much returns are you generating on an average annually
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Suppose you started with 1 lakh and you generated a return of 50% the first year. Amazing
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your capital was one and half lacs at the end of the year. You started the second year with the starting capital of one and half lakh
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and if you generate another 50% the new starting capital for the third year will be 225000
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and if you generate 100% return of the third year then it's a lottery for you then the starting capital for the fourth year will be 450000
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it's good to hear 50% 50% hundred percent. But is it possible realistically? Yes
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can you do it? I don't know. Did I do it? To some extent. Should you aspire for it? Yes
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you should always inspire and try to achieve your goal. The more we focus on annualised return.
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that will decide how much time will it take for a capital of 1 lakh to be converted to 1 crore
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if we say that we are generating a 25% annualized return. There is another problem
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annualized return does not mean that way generating 25% every year. We might generate 0% in a year and hundred percent in another so that we have an average of 50 %
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so you should never evaluate yourself each year. It's like hitting a hammer on your head each year if you're evaluating your performance each year
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You should evaluate CAGR over a period of time. You started at a point and have reached a point after 4 to 5 years
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what is your annualized return. It's an average of Return of the past 5 years to calculate CAGR
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what should I do to convert 1 lakh to 1 crore and in how much time? If you are generating 25% annualized return
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then it will take you 21 years. It will take 21 years to convert 100000 to 10000000 if you are generating 25% annualized Returns
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generating 35% annualised return then you will achieve it in 16 years and if you're generating 50% annualised returns then you will achieve it in 11 years
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and if you are generating hundred percent annualised return then it will take you 7 years to achieve your goal
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1 lakh 2 lakh 4 lakh 8 lakh 16 lakh 32 lakh and finally hundred lakh that's one crore
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it is possible and you can achieve it. I have roughly managed to achieve it. Should you target for 100%?
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Generally, you can keep 100% aspiration when you start with a small capital of 1 lakh
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but capital increases from 1 lakh to 10 lakh, your risk appetite starts becoming weak
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so the kind of risk you need to keep for hundred percent returns might not be justified and the risk reward ratio might be favourable
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should you attempt it? Yes. There's no harm in keeping an aspiration for hundred percent Returns
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it's a small capital so your loss will also be small if you can not attempt 100% in the small capital then how much will you try it in
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the agenda is how to get hundred percent returns on a small capital and as my capital size increases the return will also decrease
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so our attempt will be to generate a 50% annualized return. Start with 1 lakh and get 1 crore in the next 15 to 16 years
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you might not like what I am saying that it might take 16 years to convert it to 1 crore
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you need it in the next 5 to 6 years then what is this scheme to convert 1 lakh to 1 crore in the next five to six years
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I have already told you that you need to generate hundred percent returns for the next seven years
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you cannot achieve it through straightforward methods, you need to take the crooked way
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The crooked way in the share market is how much are you leveraging? Leveraging is the most powerful weapon
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It's like a sword with pointy edges on both sides. But if you use it properly then it can define your objective properly
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when you start with 100000 then you need a maximum leverage. It means that you trade in that instrument where the maximum leverage is available
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let's list down the instruments that we have. First, currency market, USDINR.
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the currency market is listed in India in NSE, MSEX, and BSE. USDINR where the margin percentage iss roughly 3 to 3.5%
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if you have 100000 then you can take an exposure for more than 30 times, an exposure of up to 30 lacs
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if you work properly and you are able to generate 1% monthly of that 3000000, then you can earn upto 30000 monthly
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it means 360000 annually. You can earn upto 3 lakh 60 thousand from 1 lakh. But is it easy to generate 1% return in currency market
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nothing is easy, even recording this video is not easy. But you need to put an effort and work properly
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the first is currency which gives you the maximum leverage and if you want to learn then you need to understand its workings
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the second is commodities, gold silver copper oil that is traded in MCX. Each commodity has a different margin
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there is a roughly 10 to 15 percent margin, the less volatile commodities have less margin and the higher volatile higher margin
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but roughly there is a 10 to 15% margin requirement. If you have a capital of 100000 then you can take a position of up to 10 lakh
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if you have taken the position of 10 lakh and your generating 1% return monthly of that 10 lakh
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then you are generating 10,000 monthly which is 120000 annually. Can you generate 120000 from 100000? Yes
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but we need to understand through trading in commodities and how to do it. Thirdly, equity markets
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let's break it into two parts: derivative Markets and cash market. When you trade in cash market and take delivery
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you need to pay the entire amount to take the delivery, so you need to deploy the entire money
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Although a lot of brokers provide 5 times margin in the cash market. That means that if you take delivery today then you have 4 to 5 days to pay in that amount
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you can take the leverage as brokers to provide it. 5 times means that you can take delivery of 5 lakh from capital of 1 lakh
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this is for cash market and if you do intraday then it is the same 5%. You take a position of 500000 with a capital of 100000
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if your generating 1% return on that then you are generating 5000 monthly 60000 monthly
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you can generate 60000 from that 1 lakh. But you need to learn how to consistently generate one person through trading in the cash market
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let's come to derivatives this is the most complicated. Let's break equity derivatives into two parts futures and options
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the value of futures is very high. There can be any value between 5 to 10 lakh. If I consider a margin of 20 times in futures
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then you need at least 1 lakh to work in futures and there can be daily fluctuations of profit and loss
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so we will not be working in futures. We can not work with 1 lakh in equity futures and we shouldn't do it
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but we can work in options. We can either become buyers of options, there is a small premium investment
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if your fluke is right then you can earn a lot of money through the premium. Option buying is like a fluke
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the seller on an average of 70 to 80% of the time, and the buyer only on 20 to 25% of the time
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it is not easy to make money through option buying. People say that the seller is taking the most risk when option selling
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but I feel that the option buyer is taking more risk as his premium will get over. The time at least is in favour of the seller
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Can 100000 through option buying worth 1 lakh in one year? Maybe. There's a possibility of 20 to 25% but you need to learn
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but if you are into option selling and only naked selling, then your margin requirement is high
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but if you are in two leg or three leg strategy, where you buy one and sell the other
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buy one cell the other cell the third and by the fourth, the different combinations of options
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if you are following that then the margin requirement is less but the return is also less
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I feel that if you work properly in option strategy, then you can earn upto 2% to 4% in options
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which is 35 to 40% annually. You can earn upto 150000 to 175000 if you work properly and options
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let's just quickly revise it. The first is currency. Now you know how powerful is currency
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it gives you a very high leverage and if you have a good grasp then you have a very high chance of converting 1 lakh to 100000 the next year
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Second is commodities where that is a good leverage high volatility and more time to trade so there is a good chance that you can make more money
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there is obviously an associated risk. You have to take the risk to reach to 2 lacs from 1 lakh
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cash trading in equity market is relatively less risky but the capital deployment will be high
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so it will take time for 1 lakh to convert to 2 lakh and it might take you one and half to two years
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but you do not have time as you want to convert 1 lakh to 1 crore in the next 7 years
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you need to double the money in the next 7 years. It is possible if you have the right product understanding and Framework understanding
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let's quickly recap it. Currency is the most leveraged with high return. By currency I mean trading in USD INR
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2nd is commodities which is high leverage with a good high return in equity. You can pick up one commodity and start trading to understand how it works
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third is equity where there is lesser chances of taking a high leverage. There Alice chances through option buying to make money in the net
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as buyers always hedge and there is higher risk of facing losses. You can take a higher leverage by option selling
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but it is better to do spread trading as there are less chances of massive losses through spread trading
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this was my Framework where I told you how to convert 1 lakh to 1 crore. You can pick up whatever you want
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do you want to 100% zone in the seven years, 12 years, 16 years, 21 years, or 30 years
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I have told you the risk profile leveraging and now you have to decide which path do you want to take
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I hope you like the video I really enjoy recording this with you I say everything from my heart do you like the video if you like it
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and comment if you did not like it so that I understand and make better content next time
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this is all hidden and I wanted you to know hope you are liking it
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keep sharing my work and motivating me. Bye