Risk Management

Trading capital = 10,000 (example)

Define Risk/Profit limit per day = 5% of trading capital i.e. 500 (5% of 10K)
Define Risk per trade = 2-3% of trading capital i.e. 200-300 (2-3% of 10K)
Define Maximum no of trades = 2/3/4 (we don’t want to pay more charges as brokerages &
taxes than our profit)
Adjust the calculations as per your capital.

STOP trading once Risk/Profit limit per day is reached as markets are forever.

Position Sizing
How many stocks to trade per call?
Risk per trade divide by Stop loss for example if Risk per trade is 300 & stop loss is 5 then buy
or sell only 60 quantities (300/5).
As your experience increases you can set more risk per trade or trade with futures.

Risk:Reward
Always take a trade which has Risk:Reward ratio > 1:1 which means if your stop loss for a
trade is 5 rs then profit should be minimum of 5.
If you have 7.5 rs profit then R:R is 5:7.5 = 1:1.5

General Rules
● Follow all the calls and don’t be selective as you might end up not taking winning trade
and picking losing trade. My success ratio is 60-65% collectively.
● Profit and Loss are part of trading, no one can guarantee profit.
● If you have proper risk management, you will succeed in the long term.
● Actively participate in doubt group, practice charts, find opportunities yourself. You
should aim to become independent after 4-5 months.
● Always focus on learning from trades and don’t run after money.
● You should increase your capital or quantity only if you are profitable in the current setup
for a month because you need to grow emotionally to handle big trades.
● If you have any doubt, reach out on whatsapp. If a question is related to current trade,
will answer immediately otherwise expect delayed response in market hours.