Learn To Calculate Risk Before Entering into a Trade

Stop panicking and Start Making Money #riskmanagement #positionsizing

In This Particular post, I am going to cover one of the important topic which people avoid talking about everyone is running behind strategy but forget that risk management is something which plays an important role in traders journey

So let's take an example

Suppose You want to Buy this stock (pic 1.1) for 340 stop-loss will be 336

Buy at – 340

Stop-loss – 336

You only want to risk 500₹ on this trade so how we will calculate this

So buying price – stop-loss price / 500₹

340₹ - 336₹ = 4₹

So 500₹ divided by 4₹ = 500/4= 125 Qnt

Thank you for reading