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Risk Management

Protecting your capital is the job.

Last updated 10 Aug 2026

Position sizing

A common rule is to risk no more than 1–2% of account equity on any single trade. Work out your position size from your stop distance, not the other way round.

Always use a stop

Decide where you are wrong before you enter. A position without a stop has an undefined worst case.

Understand correlation

Several positions in correlated instruments are effectively one larger position. Nifty and Bank Nifty tend to move together.

Keep leverage modest

Available leverage is a ceiling, not a target. Most durable traders use a fraction of what is offered.


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