Risk factor in bank nifty option

Posted by Nifty option tips on February 11th, 2021

The most important strategy for trader in stock market is How to minimize the risk and how to
maximize the profit. Here we will discuss , How to minimize the risk and how to maximize the profit
.A successful trader must be aware of how to read charts. Every trader wants to get maximum profit
from the stock market. The question does he get it. The answer is some time he gets excellent
profits, sometimes some good profit some time small profit some time no profit no loss some time
small loss some time big loss. The question is why and how it happens with trader who does trading
in Indian stock market. The answer is trader is not doing his trading with the strategy how to
minimize the risk and maximize the profit.

Risk Management is key where a trader calculates how much maximum loss can occur in a trade.
You must have listened or read No pain No gain or No Risk No Gain or More Risk more gain. When the
trader takes a large risk in hope of a large profit this term is called Risk Premium. We suggest a trader
must calculate his risk-bearing capacity first before expecting a profit. Nobody can give a 100% guaranty
in trading in the stock market. The trader must have funds even after triggering stop loss. The stop loss
or risk involved in the trade must be bearable within the capacity of the trader. Get bank nifty option tips with one of the best bank nifty option tips provider in India.

If the daily Risk bearing limit has crossed the trader must stop trading for the rest of the day. But this
is very strange when the stop-loss triggers or the daily stop-loss limit of a trader crosses the most of
trader enter in new trader with more risk in expectation of recovering loss. If a trader trades after
his daily stop loss limit sooner or later he will be at a huge loss and he will say the market is very bad . But
Trading in stock market is not bad. Trader who trade without proper knowledge and without any
strategy without calculating their risk say this market bad. If a smart trader trades with knowledge ,
strategy and within in his risk capacity sooner or later will be in excellent profit.
Traders must choose the stock before entering in the trade. There must me volume and large
number of buyers and sellers of that particular script. The stock which comes in list of Nifty 50
mostly have volume and large number of buyers and sellers. So a intraday or day trader must choose
script for intraday trading from the list of Nifty 50.

After deciding script trader must calculate his entry of the level. This is the most important thing. A
expert trader easily analyses that on which level the stock in question has resistance and where the
stock is taking support. After proper analysis and reading of charts a trader should enter in the
trade at correct level. The trader must put stop loss immediately after the trade execution. Proper
target must be set also as per the maximum profit expectation from the trade. The most important
thing is if unfortunately stop loss triggers and limit of daily risk capacity crosses a trader must
immediate stop trading for the day in expectation of recovering loss.