This thread is dedicated to active investing in equity cash segment and creating long term wealth.
Its called active investing as it is not buy and hold portfolio. There will be entries and exits based on market swings.
When the broader markets enter bear markets and buying opportunities dry up, the strategy may involve short selling as well.
Risk Management Rules:
1. Do not invest more than 10% of capital in any stock (minimum 10 stocks in portfolio). For example if capital is 5 lakhs, no stock will be bought for more than 50,000
2. The position size will be according to the risk per trade i.e not more than 2% risk per trade (i.e if capital is 5 lakh, risk per trade maximum can be 10,000)
Cheers
SH
Its called active investing as it is not buy and hold portfolio. There will be entries and exits based on market swings.
When the broader markets enter bear markets and buying opportunities dry up, the strategy may involve short selling as well.
Risk Management Rules:
1. Do not invest more than 10% of capital in any stock (minimum 10 stocks in portfolio). For example if capital is 5 lakhs, no stock will be bought for more than 50,000
2. The position size will be according to the risk per trade i.e not more than 2% risk per trade (i.e if capital is 5 lakh, risk per trade maximum can be 10,000)
Cheers
SH