Veluri,
Just few question..
1) Have u backtested / paper traded this method with ZERO money.. or not.
Or are u testing the strategy with 5000 Rs. marked as donation to market.
2) Today, u have lost 350 rs on 5k account whcih is 7% of capital.. This is bit too much of risk from money mgmt perspective. If you want to ignore it, fine.. Nobody can stop u from that.. cause it is your money. Hope this does not train your mind with wrong trading practice..
My suggestion will be to treat each Rs with same seriousness (that shows our belief/attitude about money..and if that is not right, it is very unlikely that u will be able to make those Crores in this mkt)..
If I were to trade 5k acct, I will go ahead with 1% risk on each trade ..yes that turns out to be 50Rs. Not loose more then 150 rs in a day.. i.e 3% of my acct..
With stock, if I might buy 1 qty.. or 2 qty.. if thats what i can afford in 50Rs of risk.
My intention is not to make 1 lac with 5k..but to learn trading.. So better to learn RIGHT trading, rather then gambling with my money.
I believe stock trading gives u that flexiblity to buy 1/2 stock and still follow all the rules of trading that a professional trader will follow.. No need to run behind that home run in 1months time.. If you continue to take this much of risk, in 4 to 5 loosing days (and it is quite common in the market. We have to be prepared to take upto 20 loosing days in a seq to comeback and fight the next day in the market), you account will be down to half . Moreover it will leave very different mark on your trading psychology which you will have to correct/overwrite later.
One thing that I have learnt after paying huge price to the market - if you cann't reinforce right trading behaviour to your brain, then atleast avoid feeding it with wrong behaviour. This just makes our task lot more tough, when we get awareness of what trading is..
Might seem like gyan at this stage.. but just my experience is telling it.
That doesn't mean that u can't have different experience.. so feel free to do what u DECIDE to do.
hope this helps.. Happy Trading