Hello friends and seniors..!
I have a query regarding capital allocation.
For example if i have 50,000 rs , ideally how much capital should i allocate to one stock ?
I read somewhere that one should only allocate 5% to one stock, need inputs on this from others.
Also, i'm confused with the phrase" one should not risk more than 2% capital on one trade"
Does that mean i should allocate 2% of 50,000 which comes to 1000 , or does that mean after i allocate a sum on a stock ( say 5% of 50,000) my loss should not exceed 2% which comes to 1000rs
Please guide.
I have a query regarding capital allocation.
For example if i have 50,000 rs , ideally how much capital should i allocate to one stock ?
I read somewhere that one should only allocate 5% to one stock, need inputs on this from others.
Also, i'm confused with the phrase" one should not risk more than 2% capital on one trade"
Does that mean i should allocate 2% of 50,000 which comes to 1000 , or does that mean after i allocate a sum on a stock ( say 5% of 50,000) my loss should not exceed 2% which comes to 1000rs
Please guide.