Couple of Newbie queries

Hi all on the forum,

I am sorry to bug you guys/gals but I have a couple of small queries, hope that wont waste much of your time.

1. What should be the percent of capital I could/should risk per trade, i know there is definate answer but all types of views are invited. Presently I am using 2%, ie 50 consecutive loss trades enough to me bankrupt :rofl:

2. What ROE per month is OK for an average Joe who is not full time trader.

3. For example I trade with 1 lot Nifty (Intraday) . So the capital I will put in according to 2% rule is and according to my SL management would be 50K
A 10% return on it is 5K, ie 100 Nifty points, which something one can make in say 1 week itself. So I am confused as in is my ROE target is small or my capital is small.

Looking for some help :thumb:

Cheers bye....

No one is replying hmmm....

someone please reply

2. What ROE per month is OK for an average Joe who is not full time trader

Dear friend,

pls pardon my ignorance...what is ROE?

regards

Return on Equity

ha ha great quote

ROE per month is totally individual to each person and their lifestyle and desire.

Risk per investment also, for example each person has different tolerances to risk as also loss.

I have done many, many trades over the years where on paper my risk was 90% yet in reality my risk is only as much as it takes me to exit a failing trade but in general I am happy with 25% as I know in general my win/loss % would cover it easily but most importantly although a trade like that (90% Risk) typically has a very high Probability of success (85-97%).

I trade Probability% over $Risk any day of the week.