Capital ManagementStock market trading is one of the most easy way to ensure an alternate income.
If you calculate proper risk management and use your hard
earn capital with discipline, you can definitely earn good frin trading.
Why capital managment is needed some of the points are below
Technical Reason : Internet problem, your broker's technical problem, it happens.
Emotional Trading : Decisions driven by human's emotions.
Big Price Changes : When market is volatile, big price movment can happens. the chances of losing
your capital becomes higherWrong Entry & Exit : This happens most of the time, when stock is moving up one thinks to sell it, but stock reaches to sky, Time is also main factor in this, same with the exit.
Not using any Stratagy : doing
trading just as time pass, not studying anything, just buying and selling for self satisfaction there are many other things also above are some common points.
Here that's why we need to use Capital Managment.
Capital management is used to mange your hard earn capital and calculate risk reward ratio.
Enter figure of the capital how much you are invested, and enter risk percentage.
At "Enter Trade Details, enter entry price,
stop loss and target, program will calculate, risk reward ratio,
and also calculate how many quantity you should by taking the risk you just entered above.
It will also calculate some other useful things.
If you want to automate whole process, just click
button marked with "C" = calculate.
it
will fill entry price, show calculated stop loss and other things.