This is how scalping works!
Now let’s talk about risk management.
Let’s suppose you have ₹1 lakh capital. You should only use ₹10,000, which is around 10% of your total capital. With ₹10,000, you can buy approximately 1 lot in Nifty.
Let’s take today’s trade as an example:
You buy Nifty 24600 PE at ₹126.05 and sell it at ₹137.70. That gives you a total profit of around ₹873 — which is 0.9% profit on your ₹1 lakh capital.
That’s a significant gain when using proper risk management. Even if your stop-loss hits, it won’t affect your overall trading account much. Plus, you’ll be able to take the next trade with a free and clear mind.
Hope this helps you understand how important risk management is!
Now let’s talk about risk management.
Let’s suppose you have ₹1 lakh capital. You should only use ₹10,000, which is around 10% of your total capital. With ₹10,000, you can buy approximately 1 lot in Nifty.
Let’s take today’s trade as an example:
You buy Nifty 24600 PE at ₹126.05 and sell it at ₹137.70. That gives you a total profit of around ₹873 — which is 0.9% profit on your ₹1 lakh capital.
That’s a significant gain when using proper risk management. Even if your stop-loss hits, it won’t affect your overall trading account much. Plus, you’ll be able to take the next trade with a free and clear mind.
Hope this helps you understand how important risk management is!