Was answering a Traders query and just sharing my answer here.
In my opinion, making money consistently every month is possible only at relatively lower returns .....
if you want to beat FD returns and make 1% a month (12% a year - close to twice that of FD) , you can be more consistent in options selling with cover ....
as u try to increase the % returns, u will find that the consistency will begin to drop and beyond 3% - the more aggressive returns u try to make, the loss possibility rises and the % loss also goes up and you may even lose your entire capital ....
its ideal if a beginner starts to focus on, not losing and try to make FD returns or more .... and slowly work your way up to try and make more returns and at one point, u will feel it becomes tough .... and learn to come back a bit at that point ..... it may be 2% or 3% or 4% .... depends on the person and the experience and ability of the mind .... some can be naturally gifted at trading ....
the problem is, as beginners, we work on trades where making 50% or more returns a month is also possible .... this is like trying to fight Mike Tyson on your first day of learning in boxing .... You will be ambushed eventually .... Fight and practice with a beginner like you ... learn from the coach and maybe in a few years - you will be ready to fight Mike Tyson ....
And stay at very minimal capital - till you make profits consistently for a few years ....
5% a month is a path to becoming the richest man in the world with just one Lakh capital over 40 years .... Above 1% a month, anything more is a bonus ....
Above 2% Returns - you are among the top 5% traders .... Above 3% Returns - you are among the top 1% ....
Above 4% returns a month - you are the next Jhunjhunwala / Warren Buffet .... if u can do it over 40 years
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