Nifty Intra Trades

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VJAY

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Some thoughts of moneymanagement for positional traders>>>>>written by greet
About stocks i just want to say u all few things regarding the way u buy and the way u sell and little bit i will talk about Money management and then the sectors which are attractive, with some disciplinery thoughts and how u should use a correct positional trading strategy towards your benefit in further months to come. I saw most of you traders sometimes buying stocks by using lot of capital i mean way above 100 percent also in few of your positions which is not good at all, it will increase your risk, Exceptions can be made but not always u can do like that, and some of u are doing a bit of mistake in closing stocks, lets say we bought 2 stocks and before buying we kept our exit of both of them as around 60 to 70 percent returns, then in both of them our risk must be around in a range from 15 to 25 percent as well according to the risk and reward rule, then lets say if u close 1 stock with a loss of 15 percent becz it dnt work like u wanted it but the other one started to go up and suddenly u see its up 20 percent but in your nervousness u can’t stick to your pre plan which u created and u book a profit in this second stock at 20 percent, so whats the point here, Clearly we can see that you are not doing a good money management then as in the beginning of creating a position as u decided to kept exit of 60 to 70 percent in both of them then how can u change in the middle of a running position, so don’t get nervous, and ruin your money management, once we create a plan for some positions we follow it till end. Till the tme there is no serious valid reason or a proof u see on candles. Now a little bit i want to speak about correct money management as well, Recently i made a position and continue to make it in CUPID around 40 to 50 range. now i made a plan for this as an exit around 70 to 75 area and Stop of 33 to 38. I am using 8 percent capital in it, as usually i always say u to use from 10 to 15 max cap in 1 stock so that your money management doesn’t go wrong. Now as i kept exit of 70 that means around 40 to 45 percent return and 15 to 20 percent of a loss, So if as a positional trader i use to make a position for 20 to 25 percent return with a loss of 10 to 15 percent, here the story is different, where my risk is around 15 to 20 percent, so in this case i have to use less capital also, i can’t use complete 10 to 15 percent of my cap, so that my money management doesn’t get bad with this position and effect my rest of the regular positional trades, so here i can use max 8 percent of my cap, to make my money management equal as compare to my other regular positional trades. its little complicated thing but if u read it and understand it, then u will get it better, i mean maybe u will think these things are too complicated and we have less money so who cares, but really if u dnt pay attention to right money management from the beginning of your career then later on you won’t regret, discipline in trading comes with hard work, where u should not think i have small capital or big capital, if u want to become a professional trader some day and work with big amount of capital, then u have to take care of your money management properly from the start itself.
 

VJAY

Well-Known Member
costs are excluding from abv figures.....as for me i trade with 2 brokers...so its variable ...total costs arround 100 points for me this month...so only very small profit this month :) only Rs 800+ :(
 
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