capital size

Most traders select the trading strategies without considering the size of their Trading Account i.e. their capital. e.g even if they have small account size (less than Rs. 1,00,000/-) they want to trade in derivative segment. In this case they will have bigger draw down and they will be mentally disturbed if they face 4 -5 consecutive losses.

Yes.....ur right

if ones strategy involves Riskmanagement then ur correct.

Retail traders in india don't understand this,they even don't know what is the minimum sufficient amount to trade individual markets(futures,options,commodities...etc).

For me....Indian markets are not at all suitable.These markets are designed such way that we can't position size our trades properly,and need more than 5 lacs to be effectively position size the trades.Most traders don't know this.

problems i have noticed in Indian Markets.

1) In Stocks we didn't have equal opportunity(only Long no shorting) due to uptick rule.(one has to have equal opportunities to be succesful/to last long in trading)

2).In Futures market,in india we didn't have Continuous contracts and one has to close thier position on closing date of contract,and need to open fresh positions(extra costs for brokerage and taxes,other than that it will effect the Psychology of trader whether to open new position or not after closing date of contract,sometimes he takes small profit or small loss only to see high profits if stayed in that trade).

3).In options... i personally didn't like Options anywhere(abroad markets also).the only reason is Time decay,there r times when ur correct about decisions in options trading and u still loose money because of this time decay.

........and in india we didn't have weekly options.

let say ....if retail traders in india noticed these points and decided to trade abroad Markets then comes,......... Indian Government Policies and Rules(Rbi).they banned Investing in abroad markets including Forex.


small retail traders are not aware of these things and starts trading with insufficient capital and finally go broke.