It's recommended that to risk 2% in one trade is ideal for beginners, I read.
But I couldn't find such low risk trade opportunity (may be I am not calculating it right... don't know) in bigger time frame or don't know how/where to look.
I understand it that the 2% risk is of trade value, not 2% of my whole capital.
So assuming I have Rs. 100/- as capital. I buy 1 unit of ABC stock worth Rs. 50/- and my stop loss is Rs. 49/- (not Rs. 48/- as my stop loss)
Now my question is whether...
- I am wrong calculating the risk based on trade value (or)
- I am not good at finding the low risk trade opportunity
Those who are good at money management and practicing in real time, please leave your comments.
But I couldn't find such low risk trade opportunity (may be I am not calculating it right... don't know) in bigger time frame or don't know how/where to look.
I understand it that the 2% risk is of trade value, not 2% of my whole capital.
So assuming I have Rs. 100/- as capital. I buy 1 unit of ABC stock worth Rs. 50/- and my stop loss is Rs. 49/- (not Rs. 48/- as my stop loss)
Now my question is whether...
- I am wrong calculating the risk based on trade value (or)
- I am not good at finding the low risk trade opportunity
Those who are good at money management and practicing in real time, please leave your comments.