12.9Risk management with ₹10,000, ₹50,000 and ₹1,00,000
1What is it?
The same rules applied to three portfolio sizes.
2Why does it exist?
Rules work at any size. The habit matters more than the amount.
3Diagram
| Rule | ₹10,000 | ₹50,000 | ₹1,00,000 |
|---|---|---|---|
| Emergency fund kept separately | Yes | Yes | Yes |
| Max risk per trade (1%) | ₹100 | ₹500 | ₹1,000 |
| Max in one stock (≈10–20%) | ₹1,000–2,000 | ₹5,000–10,000 | ₹10,000–20,000 |
| Example: entry ₹250, stop ₹240 (₹10 risk/share) | 10 shares (₹2,500)* | 50 shares (₹12,500) | 100 shares (₹25,000)* |
| Suggested approach | Index fund SIP + 1–2 stocks to learn | Index fund core + 5–8 stocks | Funds core + 10–15 stocks across sectors |
| Max daily loss before stopping (traders, ~3%) | ₹300 | ₹1,500 | ₹3,000 |
4Quick revision
- Same % rules at every size.
- Risk per trade 1%; single-stock cap 10–20%.
- Take the smaller of the two limits.
5Knowledge check
Q1. ₹50,000 portfolio, 1% risk. Max loss per trade?Show answer
₹500.
Q2. ₹10,000 portfolio, 20% cap, stock ₹500. Max shares?Show answer
4 shares (₹2,000).
Q3. Why stop trading after a 3% daily loss?Show answer
To prevent emotional revenge trading.
See it live on MojoStox