What is money management

[CreditViolet]

dear creditviolet good to see u here again! i m great fan of urs articles.
pl. explain us what risk/reward ratio should we keep for day trading and which one is most practicle since its only for one day.my target for a day is @1000.
regards
hmpatil

hmp
I am afraid its difficult to answer your questions in isolation.
For my trading i typically keep anywhere from 1:1 to 1:3 RR depending on kind of trade ( scalp/trend day hold etc)
And about daily targets, it solely depends on your total capitalization, again cant be looked in isolation
Gud luck

CV

 

[ford7k]

Sir Creditviolet

Thanks for a great post.very useful novice investors like me.
ford

 

[Lux007]

Hi,

I am new to Trading...
Acquiring knowledge before i burn my fingers in the market...
Can some one correct me if i am wrong...

1) Risk per trade should not be more than 2%.
2) Risk on total captital should not be more than 20%.

I am bit confused.... what if my 1 trade = Total capital.

 

[CreditViolet]

Hi,

I am new to Trading...
Acquiring knowledge before i burn my fingers in the market...
Can some one correct me if i am wrong...

1) Risk per trade should not be more than 2%.
2) Risk on total captital should not be more than 20%.

I am bit confused.... what if my 1 trade = Total capital.

You have to read and think a bit more about MM, its not an easy subject to get a handle on.Any arbitary 2% risk or this and that has nothing to do with proper MM and everything to do with your trading strategy.If you dont have a strategy, then MM is fairly useless, maybe it can slow the bleeding but thats it.

The article is quite old and I do not subscribe to most of the theories mentioned there, theories evolve as one gains in experience

Rgds
CV

 

[sharantaka]

Help Senior Members please,
If a stock is purchased for delivery, and it goes down on the next day quite a bit, before it has come into your demat account, Is there any way a stop loss is entered and exercised?
If yes how?
thanks in advance
sharantaka

 

[Lux007]

I guess BTST can help u ...but not on T+2 when actaully stocks are
transfered to ur demat account...

 

[rajwowraj]

hi ppl,
i m new in trading market.
please tell me hot to calculate gains in mutual funds? for example if i invest rs. 10,000 in a fund.... what is its future... how do i calculate gain from return percentage. please guide me.

 

[jayanti1108]

Dear Cv, Gr8 Post Once Again. Can I Hv Some Basic And Simple Book On The Subject, Please.

 

[rajesh.sadhanala]

Hi CV,

Excellent piece of information.

Thanx
Raj

 

[swagat86]

Dear Cv, Gr8 Post Once Again. Can I Hv Some Basic And Simple Book On The Subject, Please.

http://www.4shared.com/network/sear...Description=&searchExtention=&start=0&x=0&y=0