Risk & money management by RSP
1.Take Risk max 2% per trade. Or
5% for positional trade long-term trades.
5% for positional trade long-term trades.
2. Always Play a Constant Risk -Reward 1:3 Or 1:5. (If u r not getting don't Entered Into Trade)
3. Understand Ur script & according to that make Position Sizing.
For Example.
If ur stock is trading below 200 & U seen small Breakout in a stock. so in this case if you want to trade then Trade 50% risk here. Because stock is weak.
Like Everytime u buying 100 quantity.(assuming ur Normal Quantity is 100) go for 50 quantity Here.
For Example.
If ur stock is trading below 200 & U seen small Breakout in a stock. so in this case if you want to trade then Trade 50% risk here. Because stock is weak.
Like Everytime u buying 100 quantity.(assuming ur Normal Quantity is 100) go for 50 quantity Here.
4. Dont Average ur losing Position.(Specially if ur stock trading below 200). If u r wrong accept it & get out.
5.The more active trader you are , the less you Should risk per trade.
6. Be willing to Stop trading & Re-evaluate the markets & ur methodology when u encounter string of losses. When u make a 3-4 trades in a loss. Something is wrong with you not the market.
7. Last There is no "Holy Grail" in this Stock Market. So don't waste time for searching it.