Is it Possible to Turn Your 1 lakh into 10 Lakh Via Trading in NEPSE?

Mathematically YES, practically Extremely Difficult, and logically depends on your Luck and Stock you Pick.

There are traders in the market and they say I had converted my 1 lakh into 10 lakhs, 10 lakhs into 20 or even 30 lakhs in the market. Some even say I have started with only 1000 IPO and today I make more than 1 lakhs per trade.

To be listen this type of information and gossip looks amazing but NEPSE trader has different reality, I am not saying no one had made any money in the market, someone does but not everyone and “we are not everyone”.

Turning 1 lakhs into 10 lakhs means you have to get 10x return on your initial amount. For example, you bought xyz stocks at Rs. 200 with your 1 lakhs amount, with your amount you get 500 share of the xyz company. To be 10 lakhs from the 1 lakhs the price of XYZ company has to be Rs. 2000. And now imagine how hard in NEPSE for any company to reach 2000 from only just 200 price. But it’s not impossible!

Lets Look at the mathematical parts of it and we will understand how is it possible to make 1 lakhs into 10 lakhs. (Investment in only 1 stock)

To make your portfolio 10 lakhs by 1 lakhs initial amount you need 900% return, Looks amazing right 900% return, oh wow!

Above case was investment in only one stock, now Lets see how you can make it with multiple trade:

Technically, compounding across multiple stock requires achieving a cumulative +900% net portfolio gain (total payout). Assuming full reinvestment of capital and profits on every trade, this is mathematically achieved by chaining together a series of successful trades such as 13 consecutive +20% gains, 9 consecutive +30% gains, or 4 consecutive 2x (+100%) cycle wins.  (100,000 *(1+Gain)^Trades

That means you are just 13 trade away to have 1 million portfolio, or even 4 trade away to have it. But you have to trade in multiple stock with 20% gain in each trade and reinvestment of each profit with initial amount.

Let’s see in what condition you can win in each trade in NEPSE:

• Extreme bull market momentum,
• Daily turnover more than 10 billion
• Investment in sector like hydropower, Finance and Microfinance Companies in Bull Market
• Institution favourite stock in bull market.

Finally, your are Millionaire now! 

Disclaimer: Investment is subject to risk and loss, this article does not provide any investment decision.

^{Story by: Raju Sharma}