Important thread on
POSITION SIZING
As a trader please focus on position sizing understand it. Trade that position that does not makes your feel anxious.
Now how to determine your position size:
For example
Capital
100000
Risk
2%(means you are well aware that in any case
POSITION SIZING
As a trader please focus on position sizing understand it. Trade that position that does not makes your feel anxious.
Now how to determine your position size:
For example
Capital
100000Risk
2%(means you are well aware that in any case
I will not give more than 2%)
Entry point
100
Stop loss
95
Now max risk is 2% of 100000=2000Rs
To calculate position size you need to divide your Risk by Entry minus Stoploss
Size= Risk
————————-
Entry-Stoploss
Entry point
100Stop loss
95Now max risk is 2% of 100000=2000Rs
To calculate position size you need to divide your Risk by Entry minus Stoploss
Size= Risk————————-
Entry-Stoploss
. 2000————————-
100-95
= 400
So this will never let you loose more than 2% of capital. #trading Do follow proper position sizing its of paramount importance in trading.
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