Oct 6, 2012

Risk Management Checklist




1.Always use stops 
2.Use a proven and tested methodology for calculating stops rather than an arbitrary figure.(http://perfectniftytrader.blogspot.in/2012/01/nifty-future-risk-management-plan.html)
3.Protective Stops, Time Stops and Trailing stops  should be followed religiosly
5.Never exceed a 2% risk (of your trading account size) on any given trade. 
6.Always trade with risk capital (money you can afford to lose). 
7.If you are not comfortable with risk ,completely ignore the trade.
8.Always be adequately funded to take next 30 trades.( Sample Size Trading)
9.Maximum  losing trade in a week allowed to take in Day /Week
10.Maximum  losing trade allowed to take in Day /Week
11.Maximum  losing amount  allowed to take in Day /Week
12.Always trade with maximum 2 lots only.
13.Maximum Trade to take in Day/Week/Month
14.Use scaling out of positions to boost your percentages.
15.Make Sure you make risk of ruin work for  you than against it.




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