Me too Trying to Become CrorePati

[ag_fx]

Thanks, these points are absolutely correct.

one more thing. can you give one example of money management

Well, lets give it from my live trade yesterday.

Trading capital=2 lakh
2%= Rs 4000

My entry was Short at 4660 and SL was 4680. this gives me 20 points as SL and per lot max loss of Rs 1000.
I entered this trade with 3 lots, thus risking Rs 3000 only. Thus, risking less than 2% of the tading capital.

The trade was for Nifty Future.

 

[Nava]

Well, lets give it from my live trade yesterday.

Trading capital=2 lakh
2%= Rs 4000

My entry was Short at 4660 and SL was 4680. this gives me 20 points as SL and per lot max loss of Rs 1000.
I entered this trade with 3 lots, thus risking Rs 3000 only. Thus, risking less than 2% of the tading capital.

The trade was for Nifty Future.

Hi ankitgarg20,

Can u clarify my below qurrey..?

Trading capital 2 lakh means,
Is it the Total amount alloted/avaible for trading..? or
Is it the minimum required amount to buy 3 lot of Nifty..?

Regards,
Nava,

 

[Sunny1]

Well, lets give it from my live trade yesterday.

Trading capital=2 lakh
2%= Rs 4000

My entry was Short at 4660 and SL was 4680. this gives me 20 points as SL and per lot max loss of Rs 1000.
I entered this trade with 3 lots, thus risking Rs 3000 only. Thus, risking less than 2% of the tading capital.

The trade was for Nifty Future.

In money management part,
is it enough just to limit loss to 2% of capital. I mean stop loss is also a part of money management or this is only topic in money management????

 

[Sacred.Ocean]

In money management part,
is it enough just to limit loss to 2% of capital. I mean stop loss is also a part of money management or this is only topic in money management????

All depends on those 2%(so far as MM is concerned) which also decides ur trade size.:thumb:

however, i wont go with 2%. is too much for me.

 

[ag_fx]

Hi ankitgarg20,

Can u clarify my below qurrey..?

Trading capital 2 lakh means,
Is it the Total amount alloted/avaible for trading..? or
Is it the minimum required amount to buy 3 lot of Nifty..?

Regards,
Nava,

It is the total capital available for trading. One lot of nifty utilises 45,000 of margin, so for 3 lots you would need 1,35,000 of margin. but always remember, the 2% or 1% is calculated over the total available trading capital and not the margin required.

 

[ag_fx]

In money management part,
is it enough just to limit loss to 2% of capital. I mean stop loss is also a part of money management or this is only topic in money management????

2% is for pro traders, it shud be 1.5% or less for newbies.

Now, deciding a SL is the first step after you decide to enter a trade. Once a SL is decided, then you decide your position size to limit the possible loss to minimum. It works in tandem with each other and not seperate.

Trailing SLs, Take Profit levels are also a part of Money Mgmt.


Happy Trading

 

[TFL]

Thanks i was searching that thread .
Don't you think money management consist of good strategy and fine stop loss.
And agree leverage can kill the capital and i know that.

Also i am not a comletely new bee. I am doing trading from 3 months, actually started 1 year but was busy, doing seriously now.

Also what mm strategy you can suggest so i can get a clear picture. And what strategy do you follow ?

Money management strategies are designed according to your trading method. Its not same for all also, money management is not just fixing a stop loss or a % risk.
For some of my strategies I take 1% risk, for some I take 2%, for some I may even take more or less. Everything depends on your method.

At this moment, I think it will not be much help for you getting primary things from Q&A here. Getting things from here may reduce your learning curve but sometimes you will be misguided unknowingly. So, I am advising you to read the book, "Trading For a Living" by Dr. Alexander Elder before you continue trading. It will give you some edge. There are lot of informations in this forum too but they are scattered throughout.

But you are always welcome to ask here, there are a lot of beautiful, smart personalities are here to give your hands.

http://www.trade2win.com/media/knowledge/tim-wilcox/T2W_Trading_Plan_Template_2005.pdf

www.informedtrades.com

Best Wishes Sunny.

 

[Sunny1]

Hi Hari, I have read two books on TA
1. time your trades with technical Analysis (nice book for beginners)
2.TA A To Z (not a good book to learn).
and keen to read more books

Where I can get Trading For a Living" by Dr. Alexander Elder

I am in bangalore. book is not available in sapna book house, ganagaram and crossword .

 

[Sunny1]

My yesterdays Trades

ongc 10shares : Buy at 1113.65
sold at 1121

In this trade I realized that my entry was bit late
I could have enter at 1105

Method: Crossover of SMA's 4&6 and BB

 

[Nava]

Hi Hari, I have read two on TA
1. time your trades with technical Analysis (nice book for beginners)
2.TA A To Z (not a good book to learn).

Where I can get Trading For a Living" by Dr. Alexander Elder

I am in bangalore. book is not available in sapna book house, ganagaram and crossword .

Hi Sunny,

This e-book is avaiblable in 4shared.com. You can download from this site.