Yes of course the coins must be in the wallet. Then follow my instructions.
Is it important how many coins in the wallet?
No, you should still be able to stake at 40% even if you own a small # of coins so long as you have solid internet connection and ideally you stake 24 hours a day. If you can only stake for a partial day or have bad internet connection or a PC that is constantly crashing or rebooting these factors would begin to degrade your returns.