MM Query

You are already doing very good MM by having 0.5 sl on your trades.
This is more than enough MM.


Money management is not just risk:reward ratio.
MM is combination of RR ratio AND Probability of your Trade.

Having good strategy/ Trade setup is primary and most important. Then applying MM on that Trade setup is secondary thing.

:clap::clap::clap: well said..MM is not JUST ABOUT risking more than 1 or 2% of capital per trade, BUT ALSO having R:R based on success rate of your trading system.

Just following 1% of risk of capital per trade wont make us success, may be we loose slowly instead of fast..

R:R is very realvent factor with respect to trading system success rate.

If your HIT rate is more than 90%, R:R of 1:.75 also work out.

but if your HIT rate is just above 50%, then R:R must be 1:2 or above..

If your HIT rate is more than 90%, R:R of 1:.75 also work out.

:clap::clap::clap: well said..MM is not JUST ABOUT risking more than 1 or 2% of capital per trade, BUT ALSO having R:R based on success rate of your trading system.

Just following 1% of risk of capital per trade wont make us success, may be we loose slowly instead of fast..

R:R is very realvent factor with respect to trading system success rate.

If your HIT rate is more than 90%, R:R of 1:.75 also work out.

but if your HIT rate is just above 50%, then R:R must be 1:2 or above..

You are already doing very good MM by having 0.5 sl on your trades.
This is more than enough MM.

Even having 1:1 risk reward is not a bad thing. Either 1:1 or anything above that is a good in scalping.

I don't think your are missing the money management part.
You must be missing identifying good trades.

Money management is not just risk:reward ratio.
MM is combination of RR ratio AND Probability of your Trade.

Example : A far out the money Nifty call which is trading at 1 rupee may reach 100 Rs. So this has a risk:reward ration of 1:100
Is this a good Trade to enter ? probably No. Because, the probability Of Nifty moving so high is very less.

Having good strategy/ Trade setup is primary and most important. Then applying MM on that Trade setup is secondary thing.

In trading as i have said many times most important thing is ur wins should be bigger in ur winning trades compared to what u lose in ur losing trades and ur trade plan should facilitate this .people should work on inrcreasing their reward in comparison to their risk.ur trade plan in 20k to 2lkh was excellent in this regard wish it had continued as it would have shown people how to build ur trading account in best way.