In this video, Mr Sovit Manjani takes us into the world of profitable stock trading and unveils the secrets of success with the 4 Pillars of Profitable Stock Trading. He will discuss the four fundamental pillars that form the foundation of profitable stock trading. Mr. Sovit Manjani, CEO of YUBHA.com, and TradingHeads.com, is a passionate mentor and trainer for traders/investors. With expertise in profitable algorithmic trading systems, he combines theory and practical experience.
In this video, Mr Sovit Manjani discusses the Four pillars of Consistently Profitable Trading- knowledge, methodology, risk and money management techniques and trading mindset. He discusses to Acquire Knowledge, Types of Methodologies and How to identify the best methodology for you, Impulse Strategy, Risk Management Techniques, Capital Allocation Framework, and When and how to work on your Trading Mindset.
He further discusses that in a Trend Following System with a definite Stop Loss, the Win Percent is less than 50%, but the average size of winners is substantially bigger than that of Losers. Hence the size of Losers is not a concern. The series of Losses can increase the Risk of Ruin, which can be as high as 45 to 50 in a row and beyond our control. To keep our Maximum Drawdown under check, we should keep our size per Trade as small as possible. Hence we keep Size per Trade to 2% of our Capital. This will definitely be boring as even when we make 100% Profit in a trade, it will be just 2% of our capital, but this will ensure that we stay on the wicket to play the next ball.
Watch the complete video to understand how to do profitable stock trading!