#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

Bank Nifty facing rejection from 31700

Important to see if Nifty Bank support of 30700 is held or broken.
If broken we can see 30200 in #BankNifty and 14000 in #Nifty

#NIFTY sliding to 14000, if it breaks that, we can see 13800. #NiftyBank sliding past 30500 as predicted once it breaks 30700

Both targets done.

#Nifty already below 13800 in pre-market. Crucial to close above it today. Otherwise we will see a slide towards 13627-13641

#NiftyBank below 30000 now. Minor supports at 29750 and 29300. Major support at 29000

#Nifty being indecisive and holding onto 13800

And #NiftyBank holding onto 30000 dearly.

Direction can only be confirmed post either break of these levels or bounce back from here

Look how both #Nifty and #BankNifty both defended the 13800 and 30000 levels I mentioned above?