# © WaveCrest Technologies Pvt. Ltd. Money Management & ProfitGyan for ProfitGyan advisors with emphasis on Risk Management.

## Presentation on theme: "© WaveCrest Technologies Pvt. Ltd. Money Management & ProfitGyan for ProfitGyan advisors with emphasis on Risk Management."— Presentation transcript:

© WaveCrest Technologies Pvt. Ltd. Money Management & ProfitGyan for ProfitGyan advisors with emphasis on Risk Management

© WaveCrest Technologies Pvt. Ltd. Mathematics behind Risk ? Risk helps you calculate the number of lots/shares your clients can trade in using the formula. Lots/Shares = (Total Portfolio Size * Risk%)/( Diff bw Trade Price & Stop Loss) Lets now calculate it for Different Clients using 2 different examples. A client who has a total portfolio of Rs. 1,00,000, a client who has Rs. 2,50,000 and a client who has Rs. 5,00,000 Ex 1: You take a Risk of 2% (you are very sure of this call) and recommend a Buy on Reliance with a Trade Price of 1300 and place your stop loss at 1295. Ex 2: You take a Risk of 1% (you are skeptical and are giving this call under pressure) and recommend a Sell on BHEL with a Trade Price of 1400 and place your stop loss at 1408. Details100,000250,000500,000 Capital at Risk (Risk% x Capital) 2,0005,000 10,000 Stop Loss Difference Rs. 5 Quantity 400 qty1000 qty 2000 qty Details100,000250,000500,000 Capital at Risk (Risk% x Capital) 1,0002,500 5,000 Stop Loss Difference Rs. 8 Quantity 125 qty 312 qty625 qty