Please explain the Risk reward of 1:2.
For example
For 1 lakh if the Risk is 2% (Rs 2000) then only 100 quantities can be bought.
So the max risk would be 20 points.
For exiting, should have at least two targets one at 25 points and another at 50 points.
So the max profit would be 25*50 + 50*50 = 3750 - brokerage and other charges = 3500.
For 40 trades the if all are successful then it would be 40*3500 = 1,40,000
If your target is 1,00,000 then your success ratio should be at least 72%.
Or if assume that your 75% trades are successful (which is technically possible) then the profit would be
Loss = 10*2000 = 20,000
Profit = 30*3500 = 1,05,000
Net profit = 85,000
So doubling in 1 lakh should be possible if the success rate is more than 75%
Regards,
Raj