That’s fascinating! Let me explain how you can potentially make big profits with a small amount of capital. 🌟

First, it’s essential to manage risk effectively. Instead of risking a large portion of your account on each trade, consider risking only 1% of your account balance. This approach helps protect your capital over the long run.

Here’s a step-by-step breakdown:

  1. Risk Management:
    • Determine how much you can risk (e.g., 1% of your account).
    • Combine this with a stop-loss and profit target for each trade.
  2. Example Scenario:
    • Suppose you have a $10,000 account.
    • You decide to short sell a stock (let’s call it stock ZXYZ) at $17.11.
    • Your stop-loss is set at $17.22 (risking $0.11 per share).
    • You can afford to lose $100 (1% of your account).
    • Calculate the position size: $100 / $0.11 ≈ 900 shares (round down to 900).
    • Your profit target is $16.70 (a potential $0.41 profit).
  3. Risk/Reward Ratio:
    • The risk/reward ratio is $0.11 divided by $0.41, which equals 0.27.
    • Your risk is only about 1/4 of your potential profit.
    • By capping both account risk and trade risk, you’re unlikely to lose more than 1% of your account. If the trade is successful, you’ll make close to 4% profit on your account balance.

Remember, it’s not about risking more to make more; it’s about managing risk wisely and setting achievable profit targets. Happy trading! 📈

Trade live with us WhatsApp us on 7830057771 for more info.

Ajay Kumar


Ajay Kumar is an entrepreneur who started his career early at age of 16. He started his own company at age of 21, made it a success. He has the ability as excellent stock market analyst with technical knowledge of the subject; Ajay can help you save a lot of money which you give the market after making your losses. He is the only one who has made INNOVATORS AND YOU as the best and the fastest growing institute for stock market in ASIA. Ajay Kumar is an MBA Professional with vocational experience in financial analysis. He is Expert in proceeding placements and imparting workshops. Active orator in share markets, micro/macro economics and stock analysis. A wordsmith in writing articles. Certificate holder in various modules of top financial institutes. Proficient in providing knowledge of financial modeling, financial derivatives, financial markets, ratio analysis, corporate valuation, mutual fund and much more.

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