I am doing a lot of BTST trades in FnO. I was wondering, what is opinion of you guys, on how much leverage I take?
I usually buy 5 stocks every day in FnO with some rules like:
1.) Buy 5 stocks (Maximum 20% capital per stock).
2.) Each of those 5 stock is from different Industry. I fetch Industry from this list given by NSE website ( https://www1.nseindia.com/content/indices/ind_nifty500list.csv ).
I want to stay profitable in long term, I don’t mind losing considerable part of my capital during black swan events, but I don’t wanna die neither during black swan events.
I am currently using 1.5x leverage.
I am afraid, one day, there will be some news like nuclear war and I will lose all my capital, If I use 2x leverage or more. It is not impossible for market to go down 50%, If nuclear war is declared, specially when markets are overvalued already.
Thoughts?