Dear Fellow Traders and Learners, Intraday trading is a high-stakes arena that rewards preparation, discipline, and quick decision-making. However, without proper risk management, even the most skilled traders can find themselves facing significant losses. Whether you're trading in stocks or Futures & Options (F&O), a well-defined risk management plan can make all the difference. Here's a comprehensive example of checklist to help you navigate the complexities of intraday trading with a capital of ₹50,000. 1. Define Risk Per Trade Risking 1-2% of your capital per trade is a golden rule. For ₹50,000, this translates to a maximum loss of ₹500 per trade. Set your stop-loss levels accordingly to cap potential losses. Example Formula : Stop Loss = Entry Price × % Risk. If a stock is priced at ₹200, and your risk is 1%, your stop-loss should be at ₹198. 2. Position Sizing for Safety Position sizing ensures you don't overexpose yourself to risk. Calculate the number of sha...