The picture is self explanatory.
Having said that how much one can risk is very personal and depends on account size.
Ppl see only lot size ignoring contract size.
In NSE Every FNO is 5L contract.
Contact size is lot*price
Yes every time you hold 1 lot of reliance you hold 500 (lot size) and INR 500×1250 (625000) is one side contract
When you buy and sell 1 lot you generate about 10L revenue
So 2% SL is on 625000 not on the margin your broker gave
And 2% movement is nothing big for RELIANCE now a days
So movement of 24 points in RELIANCE will not affect if someone is having 12L account.
If your account size is 1L and RELIANCE intraday move of 24 points will trigger a margin call from your broker plus your chances of becoming a heart patient
So basically 10L can comfortably trade 1FNO position.
Below that you are playing with fire and sleepless nights
With 38K you will be forced to close your intraday trade. And you are risking 12k on 50k account which is a big no no
22% risk per trade has to generate minimum 44% reward intraday.
If you can do that you are god level trader.
Start with 1L and don’t risk 2% in a trade and don’t lose 6% in a month
Market doesn’t know where is your SL and how much is your 2%
My approach having defined my risk i have only 50% probability of winning a trade.
Picking doesn’t work. You never know which will give you 1:1 1:2 1:3…. it may hit SL too.
Best place to start with is define your rules and analyze your past trades in an excel against those rules. Just do this you will be amazed.
Especially analyze the loss trades… eye opener.
In trading you need to make money. Others making or not making is not going to help you as a trader. Be open minded read and read… keep practicing.
In my personal experience trading is a personal journey and is not as rosy as marketed. If practiced with discipline as a craft it can reward you in unimaginable way. Think long term and amateur to semi pro takes minimum 3 years and few blow ups in the way.
My reason for trading is financial freedom. That i can spend my time without thinking much about finances. I have zero debt and no intention to get in future. I want to beat inflation and keep my income steady even if i retire today. This is my vision.
What is your reason for trading?
Inflation is “zerodha brokerage = 20 INR 2019” and it will be 2000 INR by 2040
I calculated i need 2L per month by 2040 to just run my family. Currently i need 50k.
The numbers may not be accurate as it was a scribble on my wall. But it conveys the message and importance of financial planning.
inflation in india is always high see the petrol prices and agri products like vegetables we are not able to calculate accurate inflation for use.
Exactly it makes more sense then to assume that inflation is always going to go up
Petrol was 18 INR when TVS50 was a luxury bike on roads and i was on trousers.
Now petrol 84 for same upgraded TVSXL and not a luxury bike on road and i am upgraded to pants ..
Lol why sad face isn’t that a reality? That’s from employees perspective not from business owners perspective.
One should read the book “fooled by randomness ” . This guy questions everything under the sun and all those successful traders are products of survivorship bias
We see only survivors don’t see the ones who are darined out of system everyday
That’s why in trading they say first survival then profitable
freedomfromfinance 