Important question for Every trader-> Initial capital Requirment
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Important question for Every trader-> Initial capital Requirment
Gone through many books / videos / course / connected traders and investors who presents excellent strategies but one important aspect about initial capital is not much talked about
Veteran trader and author Ashwani Gujaral sir in his book says you can not control the price movement but you can always control the volume you trade,most traders go bust because of volume ,not price !
For me I have identified few rules which might help you
naked Fu or Hedged Fu keep 3 times margin what the exchange ask For 1 lot
For spread in nifty keep 3 times of margin required by exchange For 1 lot
For naked long options keep 1 lot of margin equvivant to what the margin required to short that option for 1 lot
You can do anti martingale process where you reduce position sizing during drawdown and rising position sizing during favorable period
After seeing this much of margin requirment you will say return will decrease yes it affect but you can use extra margin in other investment like equity portfolio or Instrument like Gold silver ETF if price is favorable and raise Return on investments
Hope you like my words your suggestion / feedback kindly mail me [email protected]
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