Delivery Calls

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There's another trading strategy that can help newbies avoid losing big amounts in a very short period. I call it "Compounding your risks"

Here's how it works. You 1st decide the risk you are willing to take per trade. Let's assume that you say that 5% of the capital is all you want to risk for a particular trade. Lets assume your capital is 100,000. So now you would risk only 5,000 in a trade. Say if you want to buy a share priced @ 1000 with a stop loss of 50 rs. So you would buy 5,000 / 50rs. = 100 shares.

If you stop is hit, then your next trade risk would be 5% of 95,000 = 4,750 rs.

This is known as money management, which is a very important aspect of trading. Using this method, you will need to have 13 losing trades in a row to get your equity to 51,334. Assuming if you do have 13 losing trades in a row, that's a clear message that trading is not meant for you. You can also lower your risk, by risking only 2% instead of 5%. Using a 2% risk model strategy, your equity will be cut to half if you have 34 losing trades in a row.

Jai Shewaramani

Hi,
I been in trading for the last 7 months. As you mentioned I created a trading strategy in my first month itself. But the problem is I couldn't able to attain 10% monthly returns, sometimes even < 2%.:( I'm finding difficulty in selecting stocks to trade:( . I usally go for swing trading. Is there any guidelines for selecting stocks. Please guide me regarding this.

Thanks & Regards
Murali
 

Raju

Well-Known Member
Hi,

Thanks Jai . I have sold Indbulls today @565/....(Had purchased for 485)
Have plans to reenter at 561 ..Any further suggestions.Waiting for u online at yahoo.
U'r old id does not work or what ?
Please send new id ..

Thanks for the work.Mine is [email protected]


Raju
 
Hi,

Thanks Jai . I have sold Indbulls today @565/....(Had purchased for 485)
Have plans to reenter at 561 ..Any further suggestions.Waiting for u online at yahoo.
U'r old id does not work or what ?
Please send new id ..

Thanks for the work.Mine is [email protected]


Raju
Ibulls is over heated...It should consolidate or either dip from current levels. It might be a better idea to wait for tht. On the other hand, a break above 580 might suggest a further rally.

I'm no more available on my old yahoo id. My new yahoo id is jai.shewaramani

Plz mention NSE/BSe in the request line
 
Re: Delivery Calls: Mahindra Gesco

Mahindra Gesco has closed at 949 on NSE today... what does the future look like ?:)
Well, what can I say. This rally was expected. Now it is most likely to be a smooth ride towards 1100, but you can expect some resistance between 970-1000. But I don't think this should obstruct this stock from reaching its target
 
Hi....

i am begginer in markets and i have few queries...

can someone please give some advice regarding ....
-Dabur
-national alum (bought @ 213...long back)...any suggestion on it.
-GNFC (bought @ 143 (((( before big crash in market)
 
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