When can I make money by investing only 10 million won out of 100 million, 10% o
Q. When can I make money by investing only 10 million won out of 100 million, 10% of capital?
A. Let's say we do 100 trades a year.
Let's assume that we're going to lose 7% and we're going to get 20% of the profit, and we're going to set the success rate at 50%. Let's say 50 times we're going to lose 7% with 10 million won of capital, and the other 50 times we're going to get 20% of the profit:
Loss: 50 times × 7% × 10 million won = 35 million won
Earnings: Number 50 × 20% × 10 million won = 100 million won
Net income: 100 million won - 35 million won = 65 million won
So you can earn 65 million won with a 65% annual return, or a capital of 100 million won.
Q. Is it possible to do 100 trades a year? Doesn't it take a long time to make a 20% return?
A. You can invest only 10 million won at first, but when you make a profit, you will be able to return the loss. Then you can invest 10 million won again. You can also invest in multiple stocks at the same time.
For example, if the loss price of all investment items is set above the original price, you can invest all of your 100 million investment. In that case, you can do 10 trading at a time. In this way, more than 100 trading per year is possible in a bull market.
In the end, you can achieve your goals by thoroughly managing handouts, increasing revenue gradually, and increasing the number of trading sessions.