To begin with Rs 50000 is a good investment to earn some money in commodities. I remember that when I started trading in commodities I started with 10000. Back then the margin requirement were also less .I suggest you to read my article specifically on MCX tradingand do add your comment, queries there. A direct number is difficult to give as this would depend on the amount of risk you are ready to take and also what is your strategy / trading methods. Lets see below cases
- You take safe bets : Meaning you do not use complete margin and use about 40% of your margin only so that in case your position shows a loss of about 5–6K , you can still hold comfortably or maybe average your position and make some profit. This would earn you between 300–700 daily.I would suggest you to trade in Alumini which is the mini lot of Aluminium. Out of all base metals this is least volatile which means low risk – low returns.
- You take moderate risk : With moderate risk, you can earn Rs 1000–1500 daily. Remember that moderate risk would also involve some loss making trades and you would need to be careful.I would suggest you to trade in copperM or ZincM. This is more volatile than Amuminium and moves in range of about 2–3 Rs on most days.
- You are an aggressive trader : In case you are a aggressive trader, I suggest you trade in Natural gas which I think is the most volatile commodity. With 50000, you would be able to buy only 1 lot, but since its very volatile and lets say you can trade it twice or thrice daily for 750–1000 Rs per trade you may earn 2000 -3000 per daily.
Based on my personal experiences, I tried to give you as realistic numbers as I could but the actual numbers will depend on many factors. With experience you would learn new methods to initiate positions, when to book profits, taking pair trades and many new stuff. Some day, You may tell me some new strategy as well and we both can benefit from it. As I always stress, experience can only be experienced. So just get started and I hope you make good profits. Also note that virtually there is no limit as such as to how much you can earn. For example lets say you buy 1 lot NG at 180 and it rises 4% which it does on some days when there is positive news about inventory. Then you would earn around 7 Rs which is Rs 8750 in a single trade. slowly your trading capital will increase and you would be able to take bigger positions. This will result in more profits than before and the cycle continues. I would be posting a lot more articles there and you may let me know on what topics you would like to read more about