I burnt my hands literally i feel like dying..i lost 14Lakh rupees in trading..i dont knw what to do. I accept my mistakes i was greedy. I dont knw fully about trading even though i experimented. Now i have 6L left in my trading account. These 20L are my saving i saved so far. These are my Hard earnings since 8 years.i am from middle class family to buy home in bangalore i choose this trading. Please help me with your suggestions sir
I can only share few points regarding my own risk and money management which I follow personally while trading daily. May be they will help you to some extent:-
-- I use only 10% of my entire capital at a time and in a single trade.
-- Usually, I focus on, track and trade in Banknifty only. It's always easier when a trader focuses on one single index or instrument. It reduces unwanted burden of calculations, tracking multiple instruments and reduces noise.
-- As a trader, we should know that Banknifty is by far the most explosive, destructive, wild and most volatile index in the world. On some days, it can reach target within seconds and on some days, it can blow away stoploss within seconds. That's how wild it can be.
-- It's not just about using only 10% of capital but it's also about taking less trades. As a trader, I have learned that over-trading is more dangerous than holding on to single loss making trade. So never over-trade. Since I hardly use 10% of my capital, I do not even care if in case it goes wrong. I simply tend to wait longer and longer for another suitable opportunity.
-- Weekly options are complex in nature. One should know how to deal with daily premium erosion, premium fluctuations, adjustments, timing of buying a trade, etc etc.
-- Setting ideal stoploss and the art of booking profits at right time is something which cannot be taught. It is something which a trader learns while trading daily. It has taken me quite a few years of observation and study (I started at the age of 24 after my MBA days) to reach till here. My daily life involves continuous tracking, waiting for long hours for an appropriate opportunity and on many days (like today), I don't even get an ideal chance to take a trade. Trading is my sole occupation. I take it religiously. It's like my religion. It's my bread and butter.
Hope you recover all your lost capital soon. Follow strict rules. Make your own sound risk and money management. Deploy only small part of your capital at one time and don't take multiple trades all at once.
May god laxmi help you. Thanks
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