Swing Calls

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winstonn

Well-Known Member
#22
Hi friends,

Ashwini gujral must be best , but to his HNI clients....perhaps 70 - 80 % success ratio. To us the, tips are general,

thanxs
winston
 
#23
dear sir,

As a rule dont risk more than 2% of your capital to any single trade.
eg. if you start with 1,00,000/- and wanna buy shasun chem, your max. risk is 2,000/- and hence 2,000 divided by 8( stoploss ) =250 .
Hence Buy only 250 shares of shasun chem @106 with stoploss at 98.


Can u pls explain in detail the above mentioned concept by u.:confused:


klcmn
 
#24
dear sir,

As a rule dont risk more than 2% of your capital to any single trade.
eg. if you start with 1,00,000/- and wanna buy shasun chem, your max. risk is 2,000/- and hence 2,000 divided by 8( stoploss ) =250 .
Hence Buy only 250 shares of shasun chem @106 with stoploss at 98.


Can u pls explain in detail the above mentioned concept by u.:confused:


klcmn
What he is saying is : dont put all yr eggs in one basket . Prudent.

if u are prepared to lose max 1 L on any given day (but of course hope to make money overall) , spead the risk across 50 different scrips, to minimise yr losses.

Obviously u dont have to follow that literally .... and there are days when u may find the market so 'range bound' ( e.g when all are glued to the TV over an exciting ODI) that u may not find it worhwhile to trade at all !

AGILENT
 

winstonn

Well-Known Member
#25
if u are prepared to lose max 1 L on any given day (but of course hope to make money overall) , spead the risk across 50 different scrips, to minimise yr losses.


hi, aligent

it does not mean that 2% stop rule is spreading risk to 50 scrips!!!!!

eg. you have 1,00,000/- and buy 250 Shansun chem at 106 with stop at 98 as per 2% rule, your trading capital on this trade is 250 * 106= 26,500/-.........case (i)

then you have 1,00,000 - 26,500 = 73500. 2% of this is 1470.

then if you wanna buy Media Video at 51 with stop 45, you should buy 1470 divided by 6 = 245 shares . Here ur trading capital = 12495..........case (ii)


now you have 61005 and 2% of it is 1220, and wanna buy 3MIndia at 1510 with stop at 1460,
you should by 1220 divided by 50(stoploss) = 24 shares.
So your trading capital used is 24 * 1510 = 36240..............case (iii)
From case i , ii , iii,
your total trading capital used = 26500 + 12495 + 36240 =75,235/-

now only in three trades your 75% capital is used up, dear Aligent can u explain how can i make 50 trades by 2% rule.

This rule is to limit losses , and take good profit.

thanxs
winston
 

winstonn

Well-Known Member
#30
Hi Srikanth,
thanxs for your good words.
I like to say here is that rest of the calls are also good , have patience.......

thanxs
winston
 
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