How much capital should be allocated ?

#14
Well you need to decide that for yourself depending on your financial goals, expectations and risk taking ability. So figure that out first, then you can decide how much you can allocate to different stocks.
 
#16
Do understand that it's different for short term and long term trading.

The above statement mainly applies to long term investments.

5% of 50,000 is Rs. 2500/- which is max you can invest in a stock for long term. So, you can have 20 stocks in your portfolio.
2% of Rs. 50,000 is Rs. 1000/- is the stop loss for each stock for long term.

Now, if you want to do short term trading, then it changes. It's very tough to find 20 stocks at a time that meets the technicals. So, buying a basket of 20 stocks together for short term becomes tough. And, as you reduce the number of stocks, or increase the investment per stock, you will also have to reduce your risk by having a stricter stop loss. You can not afford to lose Rs. 1000 on an Rs. 2500 investment for the short term.

Long term trading is not my cup of tea. Ask yourself, what;'s your risk appetite?
 
#17
Before allocating capital, just be sure of your risk constraints. Also I would suggest all to begin with a small capital in the beginning, test that for your strategies and trading style and then gradually increase the amount. That really helps.
 
#18
How much apitla you chose to allocate to your trades depends entirely on you. You need to put in a significant amount that will bring you significan profit or you are just going to be wasting your time. It also depends on how much you want to be risking on each trade and the number of times you plan on trading every week. Do the calculations and find the amount of capital you need.
 
#19
How much apitla you chose to allocate to your trades depends entirely on you. You need to put in a significant amount that will bring you significan profit or you are just going to be wasting your time. It also depends on how much you want to be risking on each trade and the number of times you plan on trading every week. Do the calculations and find the amount of capital you need.
Indeed, But also depends on how much knowledge you possess. For example if you are a beginner, better to start off with a small amount rather than starting off big.