#RiskManagement #PositionSizing #RiskToReward

#BuyRule

I DO NOT RISK MORE THAN 1% OF MY CAPITAL IN ANY TRADE.

STOPLOSS = Buy Price - Sell Price

POSITION SIZE = (Total Capital * 1%)/Stoploss

[ #Example :

CMP: 500

STOPLOSS: 450
^ Stoploss = 500 - 450 = 50

Lets say Capital = 1,00,000

So Maximum Loss in each trade : 1,00,000 * 1% = Rs. 1000

So Position Size : 1000/50 = 20 shares #Buy ]

Amount traded = 500*20 = 10,000

#SellRule #Updated

80% of position on achieving the target - Keep trailing your stoploss

[ #Example :

Target achieved : 20*80% = 16 shares #Sell

Trail your stoploss for remaining 4 shares. If share closes below 50 DMA (Daily Moving Average) #Sell ]

Strictly follow position sizing and stop losses in a disciplined manner.

Nifty Bank Futures support is at 31700. A close below that and we could see a slide towards 31500 and then 31000. The key is to hold the 31700 today

Market support of 31700 broken, it either regains this level today or we see ~ 31000 levels today

We have next support of Nifty at 14250

Nifty might be headed for 14250 and Bank Nifty 31000 - 30750

If market panic sells and we break Nifty 14250 then that can be trouble. We can see 14000 - 13750

Seems like it was a trap to rather catch stoplosses of traders/investors

To reiterate:

STOPLOSS = Buy Price - Sell Price

POSITION SIZE = (Total Capital * 1%)/Stoploss

Strictly follow position sizing and stop losses in a disciplined manner.

The beauty of charts,
Nifty futures bounced exactly from 14250 and Nifty Bank from 31000