You should not Risk more than 2% of your Capital in a Single trade and Maximum 6% of your all Capital
Lets say you took a trade Risking 2% of your Capital
Now Your 2% of Portfolio is in Risk
Lets say Next day you found another good trade and Risked 2% in that trade too
Now your 4% of capital is in risk
You will lose 4% of your capital If Market goes against you
Now On third day you find another trade and Risk 2% of your capital in that trade too
Now you are risking total 6% of your capital in three trades
Its better not to open your 4th trade as then your risk will be more than 6% of your portfolio and if market goes against you and all your sl got hit then you would lose more than 6% of your capital
First wait for your running trades to give results and then Trade accordingly
If you are newbie then it is better tht you should risk Maximum 1% of your Capital in a Single trade for atleast 7 months and not open more than 3trades
I have seen many Newbies Opening 6-7 Trades at a time
Always Remember that Market doesn't move always in our direction
Only Risk management can save us in longrun and Overrisking of your capital would result in drawdown of your Capital😊😊
