If you cannot state the loss and the target in rupees before entering, you do not have a trade — you have a hope.
Key takeaways
- State stop, target and rupee outcomes before the order is placed.
- Reject trades whose realistic target is smaller than the required risk.
- Measured targets should reference structure, not round numbers.
Before every entry, three numbers should exist: the stop price, the target price, and what each means in rupees given your size. Writing them down takes fifteen seconds and eliminates most bad trades by making them visibly unattractive.
Targets must reference structure — the next swing level, the range extension, a measured move — not a round figure or a wish. If the nearest logical target is closer than your stop, the trade requires a very high win rate to be worthwhile, and few setups deliver that.
This discipline also solves position sizing automatically. Fixed rupee risk plus a structural stop determines quantity, so the only remaining decision is whether the reward justifies it.
Traders who adopt this single habit usually see their trade count fall by a third and their expectancy rise, without changing their analysis at all.
Related guides
Risk
Static versus trailing drawdown: what the difference costs you
Two loss-limit models produce very different real risk budgets. Understanding which one applies is essential before you size a single trade.
Risk
Risk management from first principles: the only rule that compounds
Position size, loss limits and recovery maths — why surviving drawdowns matters more than finding better setups.
Risk
Position sizing: the four-line calculation every trader should run
Risk unit, stop distance, lot value and correlation — the complete sizing workflow in rupees.
Risk
Risk of ruin: the number that tells you if your size is sane
Win rate, payoff ratio and risk per trade combine into a probability of blowing up. Here is how to think about it.
Your edge deserves
real capital
Start today from ₹1,499, trade Equity, F&O, Currency or MCX your way, and get paid in rupees on exactly the terms you were shown on day one.
Trade · Prove · Get Funded — evaluation fee refunded with your first INR payout.