Trading as a Profession.

What is the amount that you need for trading ?
As of date, the value of 100 Nifty is about Rs 2,80,000. Let me round this to Rs 3 lakhs.
You have a method for trading the Nifty that gives about 1500 points of profits in a year and risks about 500 points. (the risk is the maximum loss incurred during the year)
This is the capital requirement I get:
A. 30% Margin 90,000/-
B. Risk provision ( 3 times historical risk) 1,50,000/-
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Total capital required Rs 2,40,000 / –
Expected Gain (1500 points) Rs 1,50,000/-
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You will also earn some interest on the margin and the money you keep aside for funding losses and on the accumulated profits, but I have ignored this. The return is about 62.5% on capital invested. This is possible to achieve.
Why traders go wrong ? They over trade. While my suggestion is to trade 100 Nifty with an investment of Rs 2.4 lakhs, it is possible to trade 1000 Nifty with the same amount (without any provision for losses and a willing broker). What happens to such traders ? The end of their trading careers is guaranteed.