Capital for Stock Futures

Discussion in 'Derivatives' started by TraderRavi, Jan 5, 2017.

  1. TraderRavi

    TraderRavi Well-Known Member

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    what should be capital for stock futures
    a) intraday trading
    b) positional trading

    for example in Tatamotors lot size is 1500 , and I use SL 2-4 points , so 3000 - 6000 per lot risk in daytrading .
    by 2% max risk rule capital should be 300,000 per lot. but it seems high to me for one lot.
    In positional trading SL could be around 10-15 points , so risk of 15000 - 30000 but most of the trader use 3 lakh capital for positional so its 10% risk.
    please share your views , what you feel. and if you do trading in stock futures how do you manage risk , money management.
     
  2. TracerBullet

    TracerBullet Well-Known Member

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    Using too much risk per trade is risky in the long run due to streaks. Read this

    If you are not yet profitable, using aggressive position sizing or even using your entrire trading capital is perhaps silly. Preserve ammo for when you are ready

    As an aside, I also tried using tight stops but it didnt really work for me as tight stops are more likely to be hit within the TF noise and that leads to emotionally charged trading
     
  3. TraderRavi

    TraderRavi Well-Known Member

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    Thanks for the link TracerBullet
     
  4. TraderRavi

    TraderRavi Well-Known Member

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    most viable trading systems risk between 0.5% and 1.5% per trade, only the very best systems are capable of being traded at 2% or above.
     
    TracerBullet and travi like this.
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