Another point: If your share capital is 1.2 lacs and you are trading Bank Nifty that is 25 shares which are around 24000 each, effectively you are trading a lot that valued at Rs. 6 lacs. Now if the trade goes just 1% against you, which it can, in the case of Bank Nifty, and that is a movement of Rs. 240 per share and multiplied by 25, it is Rs. 6000. So an adverse movement of Rs. 6000 is 5% of your capital. 1% error is 5% of your capital. What if the move is 2%?

If we start thinking on these lines it could show things in a different perspective.