Opportunity Cost of Capital for Traders!

Today I was talking with a Trader who uses Profits out of it for buying Groceries!

Overall he is making around 10% Returns on 10 Lakh Capital per year!

I advised him to STOP Trading as the Opportunity Cost of Capital is 5 Lakh per year!

That means he is loosing Rs. 5 Lakh by choosing Trading!

What is Opportunity Cost of Capital?

Stock Market Investing which is Passive Method is up to 50% Returns every year through Long Term Investing. Proof

If you chose Trading instead, you are loosing 40% Returns per year.

CALCULATION

Trading Profits per year = 10%

Investing Profits per year = 50%

OPPORTUNITY COST OF CAPITAL = 40% = 4 LAKHS

Plus, if the Trader uses the Free Time into some other business activities – another 10% Gain is easily possible

So TOTAL GAIN = 4 LAKHS + 1 LAKHS = 5 LAKHS!

So a Trader is making 5 LAKH LOSS per year by choosing Trading. Instead he can chose Investing & Work on a Part-Time business for the Trading Time, he will get More Returns & Compounded too.

image

References

NO TRADING futurecaps.com/notrading

FREE Multibagger & Education

Gain Free Multibagger & Right Investment Education – without which you will be misdirected by all other Fake educations of trading, futures & options etc.

Subscribe

* indicates required

PHARMA Multibagger with Expansion Plans | Low PE Ratio | Low Book Value Ratio | Intrinsic Value Discount 70 %

pharma2 multibagger stock india

Past FREE Multibaggers Titan Biotech gained 100% in 3 months SRG Housing 500% in 1 Year

Categories:

Discussion on India Stock Market