Risk management excel sheet

When we say he was unlucky we free the person from the mistake he had done in the past which lead to unhappy outcomes. When we say he was lucky we deny the person's efforts which led to the happy outcome.

If we do not find the difference between the event that happen randomly and the event which is the result of some cause and effect then we will never know what we will get and how we will get. 

when we take risks we are forecasting the result based on our decisions but we are not 100 confident about the outcome. 

When we are not 100 confident about the outcome the importance of risk management plays a role. Risk management can maximize and minimize undesirable outcomes.

 we can minimize the risk when we cannot control the outcome because we are not aware of the different causes. Causes are the important factors in decision-making. To find the cause we need information. 

We can get information but we are not able to weather all the pieces of information which make us difficult to make a decision and lakes our decision risky

In this blog we will share the excel sheet which will help the retail investors to plan the risk and then trade. If we don't plan the risk we will blow our account in 90 days because there is famous quotes 90-90-90 which means 90% of the retail investors will lose 90 % of their money in 90 days.

How to use risk management excel sheet

Download the excel sheet from the link for  rs 1000

It will save your lakhs of rupees 

1. Input the total fund you have  in the account funds column e.g. 5,00,000
2. Input the total trading fee e.g. 20
3. Long strategy means taking a long position
4. Input the reward to risk ratio e.g. 3.0 means if you win you will  gain 3 and if you lose you will lose 1
5. Entry price is the price of the stock when you purchase the stock input the entry price
6. The risk level is the stop loss level of stock
7. max dollar loss is the maximum loss you can afford.
8. After all the input data click for exit ranges.
9. After all the input data it will suggest to you the position size when to sell the share, total profit, and gain percentage In the trade.
10. How much you can invest in total according to your risk capacity.

Important questions for retail investors you will find all the answers in the blog

1. Do you plan your trade before the market opens?
2. How important for you to calculate your risk?
3. What is overtrading?
4. What was the motivation you become the trader?
5. Do you have the explanation for your trade decision why you buy or sell?
6. Do you have any trading strategies?
7. What is the success rate of your trading strategies?
8. How you avoid the emotional trap?
9. Do you identify the driving force for the market?
10. Do you try to hide your losing positions and show your winning position?
11. How you react when your trade goes against you?
12. Do you try average losses?
13. Do you decrease your trading volume when you are loosing?
14. Do you increase your trading volume when you are winning?
15. When did you decide to cover your positions?
16. Do you have a trading system for trading?
17. What percentage of your trade is based up the trading system?
18. Do you have any trading rules?
19. Smart money vs Dumb money in the Stock market
20. The truth of the brokerage industry, Trading expert & retail traders

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