Lets double the money in 40 trades

[SavantGarde]

Thakwani,

Forgot to add....
Borrowing 1 crore would very easy.....most traders if they suddenly had that much.... I promise you.... they would be spend a whole day just looking at the screen and not even be able to put one trade.....on that day.

SG

 

[SavantGarde]

Hi ST,

Couple of reasons... why the risk percentage on trade can increase...

a) Increase lots if earlier profits on the initial capital allows it.

or

b) Increase risk % with same lot size....because of earlier profits already under the belt.

SG

Your 3rd trade in bank Nifty fut on Friday.....your entry in a long trade was at 10610 ....I don't know where your stoploss was but probably it must have been at 10580 or 10585 .Thus trading 4 contracts expose yourself to the risk of 2.5 to 3 % of your capital of Rs 1.00 Lakh and your money management and position sizing gets a little stretched.

Kindly elaborate on this max risk taken in any trade point...

If Fridays trades are on larger capital base of your own account then no issues.....

Smart_trade

 

[Subhadip]

Your 3rd trade in bank Nifty fut on Friday.....your entry in a long trade was at 10610 ....I don't know where your stoploss was but probably it must have been at 10580 or 10585 .Thus trading 4 contracts expose yourself to the risk of 2.5 to 3 % of your capital of Rs 1.00 Lakh and your money management and position sizing gets a little stretched.

Kindly elaborate on this max risk taken in any trade point...

If Fridays trades are on larger capital base of your own account then no issues.....

Smart_trade

Rightly said mr. Smart trade..

Friday trade was on my full capital.

Liked ur great attention on minute details

Also in nifty trade i ve not posted any lot size..i think it has not missed by u

Thank you

Now i see constructiveness of the thread

 

[bthakwani]

Hi Thakwani,

It is easy if you have a system to trade...

You mentioned somewhere in your earlier post.... 1-2% risk used by r1989...
Let me tell you if r1989 is up by 1 lac which would amount to 50% of the initial capital... balance 50% can be achieved more quickly.....

Another thing... don't confuse Futures & Options Trading to Equity trading with broker margin....

SG

yes SG got that... my point was that if we r trading at 10 times our capital... both the profits and losses would be 10 times of the actual... im sure no one would have a problem with 10 times profit... but its the loss that one must think of at first...

i have very recently learnt the importance of money management from u... and honestly im trying to forget what the word LEVERAGE means...

 

[Subhadip]

Hi ST,

Couple of reasons... why the risk percentage on trade can increase...

a) Increase lots if earlier profits on the initial capital allows it.

or

b) Increase risk % with same lot size....because of earlier profits already under the belt.

SG

Oh...great.
Now i love it
Jai ho traderji


You r right mr. Garde....profits of all my trade with full volume made me to do it...

 

[EagerLearner]

yes SG got that... my point was that if we r trading at 10 times our capital... both the profits and losses would be 10 times of the actual... im sure no one would have a problem with 10 times profit... but its the loss that one must think of at first...

i have very recently learnt the importance of money management from u... and honestly im trying to forget what the word LEVERAGE means...

Thats where his Risk reward comes into play. He is adding onto to his winning positions which significantly increase his rewards.

 

[Subhadip]

Thats where his Risk reward comes into play. He is adding onto to his winning positions which significantly increase his rewards.

Excellent
U got the essence of the trades

 

[bthakwani]

adding on to the winning positions of the same day... or also taking in account the good run of the previous days...?

 

[SavantGarde]

Have you noticed.....from the futures thread... the kind of capital I am talking about for taking a position....

Whereas.... most people hurl it back saying... "Why I can't take position, I have 35K which is the total margin requirement"

Only having the required amount or just a WEE bit more is never advisable.....& is extremely foolish to think along those lines for Futures Segment.

SG

yes SG got that... my point was that if we r trading at 10 times our capital... both the profits and losses would be 10 times of the actual... im sure no one would have a problem with 10 times profit... but its the loss that one must think of at first...

i have very recently learnt the importance of money management from u... and honestly im trying to forget what the word LEVERAGE means...

 

[Smart_trade]

yes SG got that... my point was that if we r trading at 10 times our capital... both the profits and losses would be 10 times of the actual... im sure no one would have a problem with 10 times profit... but its the loss that one must think of at first...

i have very recently learnt the importance of money management from u... and honestly im trying to forget what the word LEVERAGE means...

bthakwani,

No he is not trading 10 times his capital.....he is at risk by the difference between his entry and stoploss levels multiplied by the quantity he trades in a trade.....suppose his stoploss is 30 points away....and he wants to take 1.5 % of his capital as risk then he trades 1500/30 =50 BNF or 2 lots....so his loss if the trade goes wrong is 1.5% and not 5% or 10%.....

Risking 5% or 10 % on a trade in intraday is way too large in my view.....

Smart_trade