what is proper money management .. any links / videos to explain the same with live example ? .. heard it a lot but not sure what it is ..
raj232 ur a pretty experienced guy so u know what it means
. think i have said enough about it in a lot of my posts and thers a lot written on it here as well(Can check STs post on it hes written it beautifully) .here is one gem of it.
Trade 1% of your trading capital on each trade. Increase the % only after you reach 50 % profit on your trading capital....This should take about 3 months. Then at the end of 3 months devide the profits equally between trading capital and risk capital.....continue trading 1 % of your trading capital.....and trade 4-5 % of your risk capital......let this continue for 100 % profit....then repeat the same step.....
Let us take an example...say your Initial trading capital is Rs 5 Lacs......you make 2.5 L profits devide that 50:50 ...so trading capital now becomes 5+1.25 =6.25 L and your risk capital is 1.25 L now on each trade you take 1 % of 6.25 L plus 5% of 1.25 L = 6250 +6250 = 12,500 on each trade......continue this till your trading capital + Risk capital becomes 15 L ....then same steps.....
If you find 5 % too large, then go for 3-4 % of risk capital but this compounding will increase your trading capital exponentially without taking undue risk with your trading capital which goes on increasing continuously.