Pankajlcs_Risk_Management_Document:

I am an IT professional and have been trading part time for over 6 years in different segments.
I AM NOT A SEBI REGISTERED ANALYST.

I don’t follow any chart or any indicator. I just follow my conviction that came from my 6+ years of
trading and investment experience. Follow proper money management and don’t trust anybody blindly
in market.

We will talk about money management. This is the most important thing in market. This has 80% role
in making money and analysis part is just only 20%.

Let's say you have 10 lakh total capital with you, how do you allocate money for each category..?
Always you should keep separate capital for Intraday, Positional and long term. Never mix-up the
funds from one segment to other.

Long term investment allocation:

Keep 50% of your capital for long term investment, in our case it is 5 lakh and only 3% of capital for
each stock. Buy good value stocks with this fund and make your investment portfolio.

Always keep 30% of your capital i.e. 3 lakh Rs as liquid fund in your account. Whenever it comes
sudden fall in market, use this money to buy your portfolio stocks again which went less than 10% of
your buy value.

In worst case, any stock fell more than 55% from its high value, exit that stock from your portfolio. No
need to average it again.

Intraday and positional trade allocation:

In this you have many instruments to play with, you no need to do work in all the instruments. But
whichever the segment work, do it regularly. Don’t trade occasionally. If you are unlucky on a given
day, your order will hit Stop loss and your capital will be lost.

For intraday keep 20% of your capital (2 lakh) and for options trading keep 75k separate allocation.
Each option call costs around 6k, and at a time you can have maximum of 10 calls not more than that.

Example:

I will give NIFTY and BANKNIFTY calls every day with minimum 40 and 150 points respectively with
SL of 55 and 210 points. And positional NIFTY for 230 points target with 130 points SL.

In a month average 14 days my calls will trigger, in that 3 days SL, 4-5 days no profit no gain and
remaining days targets will hit.

Per day I will give 3 nifty stocks based on your total capital, equally distribute it for all three calls.
Say if you have 15k take each share with 5k for the profit of 3k. There will be possibility that 3 out of
my 10 calls can hit SL, taking 66 % accuracy of calls.

You need to buy calls in staggered manner as 1-1-1, shouldn’t take all positions at a time. For options
positional calls keep 23k for 3lot.
It’s not necessary to trade in all. You select your comfortable segment and do it regularly. People who
have very less capital can also trade intraday without fear of losing money. But you have to take in all
3 calls with equal amount invested.

As I mentioned before, all no need to do intraday. Always buy good quality stocks at your comfortable
valuations. In stock market no one can always be profitable. So be ready to book loss
Also. If you are trading on nifty please keep aside everyday profit and create one or two backup capital
because nobody knows when SL will come.

I mostly trade on nifty future, so options trading is not advisable, as it’s always more risky.
If unable to understand my suggested buy levels then please do not trade. After getting profit based
on my recommendations please do not thank me, because you took risk...it is your capital your risk
your loss and your profit.

All my intraday calls will come with 3 targets T1 T2 and T3...book profits in 35% 55% and 10% ratios
respectively. Since i take very limited risk, i expect you to do the trade in cash only though some shares
might be available in margin. And of course no intraday calls should go next day.

Disclaimer:

All above points are based on my personal experience. I will not be responsible for any profit and loss.
Before taking any investment decision please consult your certified financial advisor.

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