Risk % ???

DanPickUp

Well-Known Member
#21
NAC sir , Sir u all are speaking about 2, 5 max 16-20% risks , i have 30-40 % risks in unrealised loss in shares i bought . !!!!.

DPU sir , what about if the broker n bank the same like (HDFC - im using now) , im going to start future trade one lot of nifty thats why im asking say margin requires 30k shall we put 5k excess? thank u sir.
1. If you have 30-40% risk in unrealized loss, so you live on the hope side. Even with shares you need to have a clear idea about when you want to sell or buy. If you buy shares with the hope that once in the future they will bring profit, not even Warren Buffet is doing it that way. MM and risk management is a must even with shares.

2. Yes, place that 5 K or even 10 K excess by your broker. Margin requirements, at least in my market, change from time to time according to how high the volatility in the traded future gets. If there is not enough money with the broker, you get a margin call or you will be executed, what ever loss you have. Nac surely knows how your brokers handle such situations.

Take care / DanPickUp
 

nac

Well-Known Member
#22
NAC sir , Sir u all are speaking about 2, 5 max 16-20% risks , i have 30-40 % risks in unrealised loss in shares i bought . !!!!.

DPU sir , what about if the broker n bank the same like (HDFC - im using now) , im going to start future trade one lot of nifty thats why im asking say margin requires 30k shall we put 5k excess? thank u sir.
Now you know the reason why one need low risk strategy...

Margin requirement will change daily based on xyz calculation. You can access this information in your broker's website.

The "excess" dan talking about was in response to my query. Suggesting not to put all your savings in your trading account.
 

Mr.G

Well-Known Member
#23
Now you know the reason why one need low risk strategy...

Margin requirement will change daily based on xyz calculation. You can access this information in your broker's website.

The "excess" dan talking about was in response to my query. Suggesting not to put all your savings in your trading account.
I always have a few lemons in 30-40% loss. :p
 

Mr.G

Well-Known Member
#25
^ Careful Mr. FM. It's gonna spoil the whole basket...

And its funny me telling this to you. uh....
Those were kinda "speculative" bets. :p In the small cap portion of my portfolios. They don't carry much weightage. Small caps go rally and crash with every market swing. I have become accustomed to seeing them deep in the red and sometimes deep in green. I really have to test my nerves and not sell them as I don't believe in market timing.
 

Mr.G

Well-Known Member
#27
In futures trading, if we use hourly chart for positional trading, we need to take 15 to 20 percent risk.. but at the same time, your reward should also be the 15 to 20 percent of your capital...

so strategy and risk-reward ratio are the main factors here............ nothing else....
Explain, how do you take positional trades on hourly charts? Positional trades are taken for months and years at a time.
 

nac

Well-Known Member
#30
Yeah, 30-40% are too high, even for big account (a 6 digit figure). If I lose 2-3 trades back to back, that's all I am gone.

Enakku sara vediya vida, seeni vediye better...
 

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