MASTERING THE INTRADAY.pdf

2
INDEX
1. Introduction to Intraday trading
 Definition and basic explanation of intraday trading.
 Advantages and Risk of Intraday trading.
2. Understanding market fundamentals
 Auction process and types of buyers and sellers in the market.
 Types of market days and its explanation.
3. Technical analysis and technical strategies
 Explanation of trend and its types.
 Explanation of Indicator and its uses.
 Explanation of setups and how we use it for intraday trading.
 Relationship between opening and opportunities, important location and setups
formations for trading.
4. Risk management.
 Risk management and Importance of risk management in intraday trading.
 Setting of stop loss and trailing stop loss and booking of profits.
 Position sizing and money management techniques.
5. Building a Trading Plan.
 Pre Market analysis and script making.
 Post market analysis
 Making trade Journal.
6. Psychology
 Common psychological challenges faced by traders
 Emotion management and decision-making
 Maintaining discipline and sticking to your plan.
 Making a trader routine.
7. PROTIPS

3
Definition and basic explanation of intraday trading
Intraday trading, also known as day trading, is a form of trading where individuals buy and sell
financial instruments, such as stocks, currencies, commodities, or derivatives, within the same
trading day. Intraday traders aim to profit from short-term price movements in the financial
markets.
Unlike traditional investing, where investors hold positions for an extended period, intraday traders
open and close their positions within the same trading session, taking advantage of price
fluctuations that occur throughout the day.
Intraday trading requires quick decision-making, active monitoring of the markets, and the ability to
execute trades swiftly. Traders use various tools, technical analysis, and trading strategies to identify
potential entry and exit points, manage risk, and maximize their profits
Advantages and Risk of Intraday trading
Advantages of Intraday Trading:-
1. Quick Profits: Intraday trading offers the potential to make quick profits within a single
trading day. Traders can capitalize on short-term price movements and take advantage of
small price fluctuations.
2. High Liquidity: Intraday traders focus on highly liquid assets, such as actively traded stocks
or major currency pairs, which allows for easy entry and exit from positions.
3. No Overnight Exposure: Unlike long-term investing, intraday traders do not hold positions
overnight, reducing exposure to overnight market risks, such as gap openings due to
unexpected news or events.
4. More Trading Opportunities: Intraday traders have multiple trading opportunities in a single
day, providing the chance to capitalize on various market conditions and different financial
instruments.
5. Reduced Market Exposure: Intraday traders are typically less exposed to broader market
trends and long-term economic conditions, as they close their positions by the end of the
trading day.
Risks of Intraday Trading:-
1. High Volatility: Intraday trading involves trading on short-term price movements, which can
be highly volatile and unpredictable. Sudden price swings can lead to significant gains or
losses.
2. Commissions and Costs: Frequent trading in intraday strategies can lead to higher brokerage
commissions and transaction costs, which can eat into profits, especially for small trades.
3. Emotional Pressures: The fast-paced nature of intraday trading can be emotionally
demanding. Traders may face stress, anxiety, and impulsive decision-making, leading to
suboptimal choices.
4. Overtrading: The allure of quick profits can lead to overtrading, where traders take on too
many positions without proper analysis, increasing the risk of losses.

4
5. Lack of Fundamental Analysis: Intraday traders often rely on technical analysis and short-
term market trends, neglecting long-term fundamentals, which may lead to incorrect market
assessments.
6. Margin Calls: Trading on margin can magnify gains but also increases the risk of substantial
losses. Margin calls can occur if positions move against the trader, leading to additional
capital requirements.
7. Market Liquidity Risk: In certain market conditions, liquidity can dry up, making it
challenging to execute trades at desired prices, particularly for less liquid stocks or
instruments.
In conclusion, intraday trading offers potential rewards through quick profits and multiple
trading opportunities, but it comes with considerable risks due to the high volatility and
emotional pressures involved. To be successful in intraday trading, individuals need a well-
defined strategy, risk management skills, and the ability to handle the psychological
challenges that come with the fast-paced trading environment.

5
Auction process
The "auction process" refers to the mechanism by which the opening and closing prices of financial
instruments (such as stocks) are determined at the beginning and end of a trading session. These
auctions play a crucial role in establishing the starting and ending values for intraday trading.
The role of the marketplace is to facilitate trade between buyers and sellers. Price will auction higher
and lower as it attempts to find an area where trade can be easily facilitated. If price opens too low,
it will auction higher to find sellers, and if price is too high, it will auction lower to find buyers.
Price continually moves higher and lower in search of the best value to both buyers and sellers.
Buyers will enter the market when they feel price is below value, while sellers will enter the market
when they believe price is overvalued. This is one of the main theme of the market which helps to
move the market.
Types of buyers and sellers in the market
the role of the marketplace is to facilitate trade between buyers and sellers. However, every buyer is
not the same, nor is every seller. There are two types of buyers and two types of sellers. The ability
to distinguish between these categories will allow you to anticipate upcoming price movement and
behaviour. That is, understanding whether price is moving due to a responsive reaction on the part
of a buyer or seller, versus price movement caused by initiative participation, goes a long way
toward understanding how price will react.
A buyer that enters the market when price is below value is considered a responsive buyer. For
example if Tomatoes price suddenly rises to 100/kg then, Rami waited for the price to drop to its
average price at 40/kg.
Likewise, a responsive seller waits until price is above value before entering the market with sell
orders. Responsive buying and selling sends price toward an area that is considered fair value by the
market. Therefore, price movement is short-term oriented and lacks true conviction.
An initiative buyer enters the market when price is at or above value. This type of buyer is taking the
initiative to push price to a higher area of value. If there was shortage of tomatoes in Rami’s area
and additional tomatoes would not enter the market for another three days, you may see Rami will
become an initiative buyer, in this case you will see Rami buying tomatoes aggressively and stock it
for three more days, which would push price to higher level value. This type of buying would cause
other buyers to enter the market in mass, causing price to explode to new heights. Along the same
lines, an initiative seller is enters the market when price is at or below value. This seller is taking the
initiative to push price to a lower area of value. Initiative participants have greater conviction behind
their behaviours, which has a greater influence on price
Types of market days and its explanation:
1. Trend Day - The Trend Day is the most aggressive type of market day. On a bullish Trend Day,
the open usually marks the days low, while the close usually marks the day’s high, with a few
ticks of tolerance in either direction. On a bearish Trend Day, the open will usually mark the

6
day’s high, while the market will usually close near the session’s low. The market will typically
start fast on this type of day and the farther price moves away from value, the more
participants will enter the market, creating sustained price movement on increased volume.
Initiative buying or selling is the culprit on this type of market day, as these participants are
confident they can move price to a new area of established value. Price conviction is strongest
during a Trend Day.
Imagine a sprinter lined up at the starting blocks of a one hundred-meter dash. As soon as the
gun is fired to begin the race, the sprinter accelerates out of the blocks and eventually hits his
full stride. The sprinter will maintain a high level of speed throughout the race until he
ultimately reaches the finish line. Likewise, the market will start strong right out of the gate
and will usually maintain a unidirectional stance throughout the day, never calling into
question the day’s direction or conviction. This type of day has the highest price range (high
price minus low price), meaning it can be quite costly if you are positioned against the market
or if you fail to recognize the pattern early enough to enter alongside the market. These types
of days only occur a few times a month, but catching these moves can certainly make your
month, in terms of profits. The Trend Day is usually preceded by a quiet day of market activity,
which is usually a day with a small range of movement. Coincidentally, this type of market
behaviour will usually follow a Trend Day as well.
2. The Double Distribution trend day – this the second type of day, while this day is a trending
day, it in no way has the confidence or conviction of a Trend Day. Instead, this type of day is
characterized by its indecisive nature at the outset of the session. During this type of day, the
market will usually open the session in a quiet manner, trading within a fairly tight range for
the first hour or two of the session, thereby creating an initial balance that is narrow. If the
initial balance is too narrow, price will break free from the range and auction toward new
value, creating range extension, which is any movement outside the initial balance. After the
initial balance of the Double-Distribution Trend Day has been defined, price will break out from
the range and auction toward new value, where it will form a second distribution of price. This
is the market’s attempt at confirming whether new value has indeed been established.
If the Trend Day is akin to a sprinter, then the Double-Distribution Trend Day is more like a
jogger. The jogger will take his time to properly stretch and warm up before actually beginning
his run. Once the “warm up” phase is complete, the jogger runs at a moderate pace toward his
destination. Once he has finished his run, he will begin the “cooling down” phase of his
exercise. Along the same lines, the Double-Distribution Trend Day opens the session quietly,
trading within a tight range that can be viewed as the day’s “warm up” period. Eventually,
price breaks free of the range and begins trending toward new value, igniting initiative buying
or selling. Once the market finds new value, it then builds out another range before ending the
day. The ranges formed at both the beginning and end of the day is where the term “double-
distribution” comes from, as the bulk of the day’s volume resides at one of these extremes,
essentially forming a double distribution of trading activity.

7
The initial balance is traditionally defined as the price range of the first hour
of the day, which is extremely important to professionals on the floors of the
exchanges. They use the initial balance high (IBH) and the initial balance low
(IBL) as important points of reference in order to facilitate trade between
buyers and sellers.
3. Typical Day - The third type of market day is called the Typical Day. The Typical Day is
characterized by a wide initial balance that is established at the outset of the day. On this type
of day, price rallies or drops sharply to begin the session and moves far enough away from
value to entice responsive participants to enter the market. The responsive players push price
back in the opposite direction, essentially establishing the day’s trading extremes. The market
then trades quietly within the day’s extremes the remainder of the session. The opening rally
or sell-off is usually sparked by reactions to economic news that hits the market early in the
day. This opening push creates a wide initial balance, which means the day’s “base” is wide and
will likely go unbroken. Remember, if the base of the coffee table is wide, it will likely remain
upright regardless of any added pressure or weight. Likewise, a wide base during the first hour
of the market will likely mean that the day’s extremes will also remain intact, or unbroken.
4. Expanded Typical Day - The fourth type of market day is the Expanded Typical Day. This type of
day is similar to the Typical Day in that it usually begins the session with early directional
conviction. However, price movement at the open is not as strong as that seen during a Typical
Day. Therefore, the initial balance, while wider than that of a Double-Distribution Trend Day, is
not as wide as that of the Typical Day, which leaves it susceptible to a violation later in the
session. Eventually, one of the day’s extremes is violated and price movement is seen in the
direction of the break, which is usually caused by initiative buying or selling behaviour. When
the base of the day is neither wide nor narrow, it can be a coin flip whether a breakout will
occur. The fact that the initial balance is not wide introduces the potential for failure at some
point during the day at one of the extremes. Keep in mind that during an Expanded Typical
Day, both the upper and lower boundaries of the initial balance are susceptible to violations.
On any given day, you will see one, or both, of the boundaries violated, as buyers and sellers
attempt to push price toward their own perceived levels of value.
5. Trading Range Day - The Trading Range Day occurs when both buyers and sellers are actively
auctioning price back and forth within the day’s range, which is usually established by the day’s
initial balance. On this day, the initial balance is about as wide as that of a Typical Day, but
instead of quietly trading within these two extremes throughout the day, buyers and sellers
are actively pushing price back and forth. This type of day is basically like a game of tennis. The
players stand on opposite sides of the court and take turns volleying the ball to one another
throughout the match. As the ball is in flight, a player will wait for the best opportunity to
strike the ball, essentially returning the ball to the other side of the court. Likewise, buyers and
sellers will stand at the extremes of the day and will enter the market in a responsive manner
when price reaches the outer limits of the day’s range. Responsive sellers will enter shorts at
the top of the range, which essentially pushes price back toward the day’s lows, while

8
responsive buyers will enter longs at the bottom of the range, which pushes price back toward
the day’s highs. This pattern will continue until the closing bell sounds.
6. Sideways Days - On this type of day, price is stagnant, as both buyers and sellers refrain from
trading. There is no trade facilitation and no directional conviction on this type of day. It’s like a
sleeping day no any setups are formed. This type of session usually occurs ahead of the release
of a major economic report or news event, or in advance of a trading holiday.
Not every trading day is a trading day. Many traders believe that since they are traders, they must
be in a trade at all times. These traders feel like it’s a badge of honour to tell their trader buddies that
they traded forty-two round trips today…before lunch. As such, they force themselves to trade in the
most unfriendly markets, usually to their own detriment. I am on the opposite extreme. You should
only trade when the circumstances are the most favourable for a profitable outcome. Traders should
always reserve the right to stand on the side-lines. Those traders that can learn to sit on their hands
will profit by not losing. This is something that cannot be overstated. The difference between
profitable traders and losing traders can usually be summed up by the number of unprofitable days
and the severity of unprofitability on these days. Learn to eliminate those unprofitable days by only
trading in the most favourable market conditions, and you will prosper in this game.
“The only thing to do when a man is wrong is to be right by ceasing to be wrong.”
- Jesse Livermore

9
What is Trend?
Trend refers to the general direction in which the price is moving over a specific period of time. Trend
helps us to figure out the current move of the market and make our positions according to that.
Types
Trend is of three types uptrend, downtrend, sideways.
We had added few more types and done few more briefing in trend for the better working on daily
basis (intraday trading).
Stretch back (uptrend stretch back and downtrend stretch back).
UPTREND - An uptrend refers to the overall upward movement or direction of a particular financial
instrument's price during a given trading session. It signifies a series of higher highs and higher lows
on the price chart, indicating that the market is experiencing a bullish sentiment and buyers are in
control.
Key characteristics of an uptrend.
 Higher Highs: In an uptrend, each successive peak (high) in the price is higher than the
previous high. This indicates that buyers are consistently willing to pay higher prices for the
asset.
 Higher Lows: Another characteristic of an uptrend is that each pullback or trough (low) in the
price is higher than the previous low. This suggests that buyers are stepping in at higher
levels, showing their willingness to support the price.
 Bullish Momentum: An uptrend reflects an overall bullish sentiment in the market, with
demand for the asset outpacing supply. Traders are optimistic about the asset's future
prospects, leading to a positive market sentiment.
 Buying Opportunities: Traders and investors often seek opportunities to buy during an
uptrend. They may look for retracements or temporary declines in the price as potential
entry points, anticipating that the upward movement will resume.

10
DOWNTREND – A downtrend refers to the overall downward movement or direction of a particular
financial instrument's price during a given trading session. It signifies a series of lower lows and
lower highs on the price chart, indicating that the market is experiencing a bearish sentiment and
sellers are in control.
Key characteristics of a downtrend.
 Lower Lows: In a downtrend, each successive low in the price is lower than the previous low.
This indicates that sellers are consistently willing to accept lower prices for the asset.
 Lower Highs: Another characteristic of a downtrend is that each price rally or peak (high) is
lower than the previous high. This suggests that sellers are stepping in at lower levels,
exerting downward pressure on the price.
 Bearish Momentum: A downtrend reflects an overall bearish sentiment in the market, with
supply of the asset exceeding demand. Traders are pessimistic about the asset's future
prospects, leading to a negative market sentiment.
 Selling Opportunities: Traders and investors often look for opportunities to sell or short-sell
during a downtrend. They may seek to capitalize on price declines by selling high and
potentially buying back at lower levels later.
SIDEWAYS - the term "sideways" or "range-bound" refers to a market condition where the price of a
financial instrument, moves predominantly horizontally with no clear upward or downward trend. In
this situation, the price fluctuates within a relatively narrow range, with the highs and lows forming
horizontal lines on the price chart.
Key characteristics of a sideways market.
 Horizontal Price Movement: In a sideways market, the price moves within a confined range,
repeatedly testing and respecting a specific upper resistance level and a lower support level.

11
The price typically bounces between these two levels without making significant progress in
either direction.
 Lack of Trend: Unlike uptrends or downtrends, where there are clear patterns of higher
highs and higher lows or lower highs and lower lows, respectively, a sideways market lacks
any distinct trend direction.
 Limited Volatility: Sideways markets are often associated with lower volatility, as the price
remains relatively stable within the defined range. Traders may find it challenging to identify
strong trading opportunities during such periods.
 Trading Range: Traders often refer to the upper resistance and lower support levels that
define the sideways movement as the "trading range." These levels provide boundaries for
potential entry and exit points.
 Mean Reversion: In a sideways market, there is a tendency for the price to revert to the
midpoint of the range. Traders may consider taking advantage of this mean reversion by
buying near the support level and selling near the resistance level.
 Choppiness: Sideways markets can be choppy and unpredictable, with frequent price
fluctuations near the support and resistance levels. This volatility can make it challenging to
determine the direction of the next significant price move.
We had added “Stretch back” in the sideways trend for the convenience to trade in intraday market.
Stretch back can be defined as the pullbacks in the market while moving in uptrend or downtrend, it
helps to trade pullbacks in intraday. Pullback in uptrend is called uptrend stretch back and pullback
in down trend is called downtrend stretch back. As the setups and strategies are same in the stretch
back also but it helps us more efficiently in keeping our stop loss and target.

12
INDICATOR –
An "indicator" refers to a specific tool or mathematical calculation applied to price, volume, or open
interest data of a financial instrument to help traders analyse market conditions and make informed
trading decisions. Indicators assist traders in identifying trends, momentum, volatility, and potential
entry or exit points during the course of a single trading day.
Few examples of indicators are – RSI, Volume, Moving averages, Pivot Points, Central pivot range,
Bollinger bands and many more.
Each and every indicators are calculated by the price action of the financial instrument.
As all the indicators are price driven and calculated by the price action of the instruments, there are
two types of indicators – leading and lagging
Leading indicators – leading indicators are tools that provide early hints or signals about potential
price movements before they actually occur. Example – Pivot points.
Lagging indicators - lagging indicators are tools that provide hints or signals after the price
movements had happened. Example Bollinger bands, moving average.
The indicators we use for our trading comes from both leading and lagging background. We use
three indicators set for our intraday trading. Pivot Points, Central Pivot range, Moving average.
All these indicators are based purely on the price action, we use candlesticks and these indicators
respectively for our day trading.
Explanation of Indicators
Pivot points - Pivot points are technical indicators utilized in financial markets to determine
potential turning points in price movements. These points serve as support and resistance levels,
indicating the overall market sentiment for a specific trading day. The calculation of pivot points
involves analysing the previous day's high, low, and closing prices. With this data, traders can derive
essential levels that may influence the price action during the current trading session.
Pivot points are static and remain at the same prices throughout the day, the levels can be used to
plan the trade in advance.

13
The formulas for Pivot Points:

14
Central Pivot Range –
The Central Pivot Range (CPR) is a concept used in intraday trading that extends the traditional pivot
point analysis by adding additional support and resistance levels. The CPR provides traders with a
broader perspective of potential price movements within a trading day.
The Central Pivot Range consists of three main levels:
Central Pivot Point (CPR or CP): This is the same as the traditional pivot point and is calculated
using the same formula: (Previous High + Previous Low + Previous Close) / 3. It serves as the
central reference level and represents the average price of the previous trading day.
TC and BC: These levels are calculated based on the CPR and considered as the outer boundaries
of the CPR. They can be calculated as follows:
TC = (Pivot - BC) + Pivot
BC = (High + Low)/2
The combine formula of Pivot Point and CPR is as follow
R4 = R3 + (R2 - R1)
R3 = R1 + (High - Low)
R2 = Pivot + (High - Low)
R1 = 2 × Pivot - Low

15
TC = (Pivot - BC) + Pivot
Pivot/ CP = (High + Low + Close)/3
BC = (High + Low)/2
S1 = 2 × Pivot - High
S2 = Pivot - (High + Low)
S3 = S1 - (High - Low)
S4 = S3 - (S1 - S2)
Two days CPR relationship helps to us analyse about the direction and
movement of the market, this helps us to analyse the market pre session
by comparing the width and analysing the two day relationship as given
below.
Two day pivot relationship –
Higher Value - Bullish
Overlapping Higher Value - Moderately Bullish
Lower Value - Bearish

16
Overlapping Lower Value - Moderately Bearish
Unchanged Value - Sideways/Breakout
Outside Value - Sideways
Inside Value – Breakout
These are the outcomes of the relationship of two day CPR.
Two day width comparison – two day outcomes of the CPR are narrow CPR, average
CPR, wider CPR. The width of the CPR is developed by the previous day movement of the price,
if the yesterday session price range was big then CPR will be wider because these support and
resistance are created by the calculations of the price, if the market will be choppy then the CPR
range will be narrow.
The width gives a view about the market momentum, if the width is wider then market pretends
mostly to be sideways and if the width is narrow the, market mostly pretend to be the trending.
Later in our pre market analysis we will know more how we use that for our analysis for making
trade plans.
Explanation of trading setups
Reversal setups – in this we will discuss about the reversal setups, in this setup market reverses
from important location making a specific type of candlesticks pattern that shows that market is
reversed and start to move according in the current perspective of the market by the help of those
candlestick pattern signals we use to make our positions and trade in the market, let’s discuss the
candlesticks setups.
1. Wick reversal setup - The wick reversal setup is one of the most visually compelling
candlestick patterns due to its long price tail, which helps to highlight major reversal
opportunities in the market. When properly qualified, there is no doubt that this pattern can
be a powerful tool.
Pattern structure – to recognise this setup, we need to identify and explain the key
components that make for a successful wick reversal opportunity. There are three factors to
consider when reviewing a reversal wick candlestick - the body, the size of the wick in
relation to the body, and the close percentage, which is where price closes in relation to the
range of the candle.

17
The body of the candlestick is the portion of the bar that spans from the open price to closing
price. The body of the candle is used to calculate the size of the wick. Traditionally, you would like to
see a wick that is at least two times the size of the body. Therefore, if the range of the body of a
candlestick is 10 ticks, then the wick has to be at least 20 ticks to arrive at the traditional 2:1 ratio.
While technically you only need a 2:1 ratio for a candle to be considered a reversal wick, I usually like
to see a higher ratio from 2.5:1 to 3.5:1. This allows you to eliminate some of the weaker reversal
candles, but doesn’t limit you by being too rigid, thereby reducing the number of trading
opportunities. The last component of a reversal wick candlestick is the close percentage. While the
length of the wick is the first part to determining the strength of a reversal candlestick, the second
part of the equation is determined upon where the bar closes in relation to the overall high and low
of the candle. Therefore, if the bar closes in the top 5 percent of the candle, the chances are greater
for a bullish reversal than if the bar closes in the top 35 percent of the candle. If a candlestick closes
in the top 5 percent of the bar with the wick on the south side of the candle, this means the bulls
were able to rally the market from the low of the candle and close price near the top of the bar,
taking complete control from the bears in this one timeframe. However, if the market closes in the
top 35 percent of the candle, this means the bulls were still able to take control from the bears, but
only marginally since the close of the bar barely made it above the midpoint of the range. This is still
a bullish scenario, but not as bullish as the 5 percent scenario.

18
PATTERN SUMMARY
 The body is used to determine the size of the reversal wick. A wick that is between 2.5 to
3.5 times larger than the size of the body is ideal.
 For a bullish reversal wick to exist, the close of the bar should fall within the top 35 percent
of the overall range of the candle.
 For a bearish reversal wick to exist, the close of the bar should fall within the bottom 35
percent of the overall range of the candle.

19
In the above figure shown several types bullish and bearish reversal wick candlesticks that can all
signal profitable reversal opportunities in the market, especially if these patterns are paired with key
pivot levels.
PATTERN PSYCHOLOGY
When a reversal wick forms at the extreme of a trend, the market is telling you that the trend either
has stalled or is on the verge of a reversal. Remember, the market auctions higher in search of
sellers, and lower in search of buyers. When the market over-extends itself in search of market
participants, it will find itself out of value, which means responsive market participants will look to
enter the market to push price back toward an area of perceived value. This will help price find a
value area for two-sided trade to take place. When the market finds itself too far out of value,
responsive market participants will sometimes enter the market with force, which aggressively
pushes price in the opposite direction, essentially forming reversal wick candlesticks. Understanding
the psychology behind these formations and learning to identify them quickly will allow you to enter
positions well ahead of the crowd, especially if you’ve spotted these patterns at potentially
overvalued or undervalued areas.
2. Extreme reversal setup - The extreme reversal setup is a classic “rubber band” trade. When
a rubber band is stretched to its limits and then released, it snaps back in the direction from
whence it came. We are looking to trade the snapback reversal with this setup. The basic
setup occurs when an extremely large candle forms that is about twice the size of the
average candlestick. While this candle may indicate that a continuation will be seen, but the
second bar of the pattern does not confirm a continuation and, instead, is an opposing.

20
Candle that signals an upcoming reversal. When this occurs, you have a fantastic opportunity
to buy below value, or sell at a premium.
The extreme reversal setup looks to capitalize on over-extended situations in the market, as
responsive buyers and sellers will enter the market to push price back in the opposite
direction.
PATTERN STRUCTURE
Let’s take a closer look at the structure of the extreme reversal setup. In the above picture
both bullish and bearish extreme reversal examples are shown. The first bar of the two-bar
setup is the extreme bar, which is the basis for the setup. This bar can be anywhere from 50
to 100 percent larger than the average size of the candles in the look back period.
This figure will vary, however, depending on the volatility of the given market that you are
trading. If you are trading a market with extremely low volatility, then you will likely need to
see a larger extreme candlestick to properly qualify this candle. Conversely, in markets with
high volatility, you may need to downward adjust the size of the extreme bar.
The second characteristic to consider when judging the extreme bar of the pattern is the
percentage of the total bar that is the body of the candlestick. The body percentage from 50
to 85 percent will be sufficient and if the body exceeds from the 90 percent it may continue
in the same direction. If the extreme bar has 60 percent coverage by the body, this is a
better indication that a reversal may indeed occur, as a reversal may have already begun
intrabar, especially if the wick portion of the candlestick has formed at the end of the candle
where the reversal is to occur.
The second bar of the extreme reversal setup should be the opposite colour of the first
candle of the pattern. That is, if the first bar of the pattern is bullish (green), then the second
bar of the pattern should be bearish (red). The second candle of the setup is just as
important as the first, as this candle will either lead to a continuation or signal a reversal.
Many times, this candle will be rather small compared to prior price activity, however, this is

21
not always the case. As a matter of fact, if the bar strongly opposes the first, the odds of a
reversal increase. That is, if the second bar of the pattern is a big, full-bodied candle that
opposes the first, the market may be well on its way to a clear reversal opportunity.
PATTERN SUMMARY
1. The first bar of the pattern is about two times larger than the average size of the candles
in the look back period.
2. The body of the first bar of the pattern should encompass more than 50 percent of the
bar’s total range, but usually not more than 85 percent.
3. The second bar of the pattern opposes the first. If the first bar of the pattern is bullish (C >
O), then the second bar must be bearish (C < O). If the first bar is bearish (C < O), then the
second bar must be bullish (C > O).
PATTERN PSYCHOLOGY
This setup is visually pointing out oversold and overbought scenarios that forces responsive
buyers and sellers to come out of the dark and put their money to work—price has been
over-extended and must be pushed back toward a fair area of value so two-sided trade can
take place.
This setup works because many normal investors, or casual traders, head for the exits once
their trade begins to move sharply against them. When this happens, price becomes
extremely overbought or oversold, creating value for responsive buyers and sellers.
Therefore, savvy professionals will see that price is above or below value and will seize the
opportunity. When the scared money is selling, the smart money begins to buy, and vice
versa.
Look at it this way, when the market sells off sharply in one giant candlestick, traders that
were short during the drop begin to cover their profitable positions by buying. Likewise, the
traders that were on the side-lines during the sell-off now see value in lower prices and
begin to buy, thus doubling up on the buying pressure. This helps to spark a sharp v-bottom
reversal that pushes price in the opposite direction back toward fair value.
The extreme reversal setup shines when it has developed in the direction of an existing
trend. When a market is trending, this pattern can form during the “pull-back phase” of a
trend, thereby allowing you to enter the market at a better value alongside the smart
money.

22
3. THE OUTSIDE REVERSAL SETUP –
The outside reversal setup takes advantage of a basic market tendency that calls for a test
of price levels beyond current value before a reversal can occur.
This setup envision a child on a trampoline, for a child to spring high into the air, he must
first force the trampoline’s bounce mat to go down. The farther the child forces the mat to
go down, the higher he will spring into the air. This analogy perfectly embodies the outside
reversal setup. Essentially, the market will push price lower before shooting higher, and will
push price higher before selling off.
PATTERN STRUCTURE
for a bullish outside reversal condition to exist, the current bar’s low must be lower than the
prior bar’s low and the current bar’s close must be higher than the prior bar’s high (L < L[1]
and C > H[1]). Along the same lines, for a bearish outside reversal setup to exist, the current
bar’s high must be greater than the prior bar’s high and the current bar’s close must be
lower than the prior bar’s low (H > H[1] and C < L[1]).
An additional requirement included is a bar size qualifier, which requires the engulfing bar
be a certain percentage larger than the average size of the bars in the look back period and
that percentage is usually 5 to 25 percent depending upon the volatility.

23
PATTERN SUMMARY
1. The engulfing bar of a bullish outside reversal setup has a low that is below the prior
bar’s low (L < L [1]) and a close that is above the prior bar’s high (C > H [1]).
2. The engulfing bar of a bearish outside reversal setup has a high that is above the prior
bar’s high (H > H [1]) and a close that is below the prior bar’s low (C < L [1]).
3. The engulfing bar is usually 5 to 25 percent larger than the size of the average bar in the
look back period.
PATTERN PSYCHOLOGY
The power behind this pattern lies in the psychology behind the traders involved in this
setup. If you have ever participated in a breakout at support or resistance only to have
the market reverse sharply against you, then you are familiar with the market dynamics
of this setup. What exactly is going on at these levels? To understand this concept is to
understand the outside reversal pattern. Basically, market participants are testing the
waters above resistance or below support to make sure there is no new business to be
done at these levels. When no initiative buyers or sellers participate in range extension,
responsive participants have all the information they need to reverse price back toward
a new area of perceived value. As you look at a bullish outside reversal pattern, you will

24
notice that the current bar’s low is lower than the prior bar’s low. Essentially, the market
is testing the waters below recently established lows to see if a downside follow-through
will occur. When no additional selling pressure enters the market, the result is a flood of
buying pressure that causes a springboard effect, thereby shooting price above the prior
bar’s highs and creating the beginning of a bullish advance.
4. THE DOJI REVERSAL SETUP
The doji reversal setup pinpoints indecision in the market, which can highlight profitable
reversal opportunities. The doji candlestick is one of the most easily recognizable
candlestick patterns in the market. This candlestick embodies indecision, which can help
to predict an upcoming reversal in price, especially when the pattern forms above or
below value. This pattern has been widely documented by many prominent traders and
authors and remains a powerful method for spotting important reversal opportunities.
PATTERN STRUCTURE
The doji is traditionally defined as any candlestick that has an opening price that is equal to
the closing price. Traditionally speaking, the range of the doji, from low to high, should be
smaller than the average range of the bars in the look back period and the close price (or
open price) of the bar must be at or near the centre of the bar’s range, indicating complete
neutrality or indecision. There are two important factors to consider when judging the
makings of a doji reversal setup. The first factor to consider is the current trend. For a
bearish doji reversal to occur, the market must have been moving higher prior to the
formation of the doji. On the flip side, price should have been moving lower prior to the
formation of a bullish doji. There are many ways to judge this criterion. For me, as long as
the doji forms above a ten-period moving average for a bearish candidate or below the ten
period average for a bullish candidate, I’m a satisfied customer. The second criterion that I
use to confirm the setup is the closing price of the bars that follow the doji candlestick
formation. For a bullish signal, I like the closing price of the bar that follows the doji to be

25
above the high of the doji candlestick. For a bearish reversal, I want the closing price of the
next bar to be below the low of the doji candlestick. If the market has formed a doji
candlestick and the additional criteria are fulfilled, you have the makings for a solid reversal
setup.
PATTERN SUMMARY
1. The open and close price of the doji should fall within 10 percent of each other, as
measured by the total range of the candlestick.
2. For a bullish doji, the high of the doji candlestick should be below the ten-period simple
moving average (H < SMA (10)).
3. For a bearish doji, the low of the doji candlestick should be above the ten-period simple
moving average (L > SMA (10)).
4. For a bearish doji, one of the two bars following the doji must close beneath the low of
the doji (C < L [1] or C < L [2]).
5. For a bullish doji setup, one of the two bars following the doji must close above the high
of the doji (C > H [1]) or C > H [2]).
PATTERN PSYCHOLOGY
The doji candlestick is the epitome of indecision. The pattern illustrates a virtual stalemate
between buyers and sellers, which means the existing trend may be on the verge of a
reversal. If buyers have been controlling a bullish advance over a period of time, you will
typically see full-bodied candlesticks that personify the bullish nature of the move. However,
if a doji candlestick suddenly appears, the indication is that buyers are suddenly not as
confident in upside price potential as they once were. This is clearly a point of indecision, as
buyers are no longer pushing price to higher valuation, and have allowed sellers to battle
them to a draw—at least for this one candlestick. This leads to profit taking, as buyers begin
to sell their profitable long positions, which is heightened by responsive sellers entering the
market due to perceived overvaluation. This “double whammy” of selling pressure

26
essentially pushes price lower, as responsive sellers take control of the market and push
price back toward fair value.
5. Virgin CPR reversal setup
(Virgin CPR – CPR which is not touched by price in the whole session is called virgin CPR)
V.CPR acts as a strong support and resistance zone, it’s not easily breakable, whenever price
reaches this level its get reversed most of the times, as its getting older its power gets
diminishing.
Market opened and price reached near the V.CPR level or price opened near V.CPR level and
made a reversal candle, inside of the V.CPR range and start reversing take entry after the
closing of the reversal candle and book the profit price reaching the today’s CPR level.
If the opening of the price is nearby this level and forms any reversal setup in early session
(first 60 min) then the probability is high, enter in trade according to your setup and book
profit at today CPR level.
If price reaches to virgin CPR zone in late trading session use this levels to book profits
Too narrow and too wide V.CPR not act as a strong zone in comparison of the average range
V.CPR.
This reversal setup is valid in the start of the session, in the later session use this range as a
profit booking range if you are in a trade from earlier. Don’t take trade seeing the reversal
candlestick in the later session of the market, this setup works effectively during the opening
time of the market.

27
Simple understanding is if price is opened near virgin CPR zone and formed reversal setup
that’s a trading opportunity, and if price is reaching to any virgin CPR zone in the late session
take it as a booking profit level if you are already in a trade, don’t trade reversal in the late
session.
Breakout setups – breakout is a very common term in trading. A breakout setup refers to a
specific trading scenario where the price breaks through a significant level of support or
resistance, indicating a potential shift in the prevailing trend. Trading breakouts can be
rewarding, but it also involves risks. False breakouts, where the price briefly moves beyond a
level but quickly reverses, are common in intraday trading. Therefore, we often use stop-loss
orders to manage risk and exit the trade if the breakout setup fails. Not every breakout
setup will result in a profitable trade, so we should have a clear plan and follow their trading
strategy diligently.
We divided breakout setups into two types according to its uses in the market.
1. Small candle breakout setup –
It’s a breakout setup in which breakout is done by the small candles, mostly you can see
this setup happening in the opening of the market. When market is in a trend and
opened gap up or gap down and does a breakout of the support or resistance which is
just at the overhead or below, by a small candle we enter directly into the trade after
closing of the candle, because of the benefit to keep small stop loss there.
PATTERN STRUCTURE
The breakout is done by a small kind of candle either it may be a full body candle or a
pin-bar candle, the range of the candle will be usually small.
PATTERN SUMMARY

28
 Usually takes place while opening, when the market is in a trend and opened gap up or gap
down and given a breakout by making a small candle.
 We get the benefit of entering in the trade risking a very small stop loss.
PATTERN PYSCHOLOGY
When the market is in a trend and opened gap up or gap down in the direction of trend and
made a small candle and given the breakout of support or resistance, traders take the entry
there because firstly market has given the strong move in the direction of the trend by giving
the breakout and secondly the stop loss is very small so the volume is more there.
2. Big candle breakout setup –
This is the breakout setup in which breakout is done by big size candle, normally we see
these types of setup while opening, when market opened in between CPR and
(PDH or PDL) and made a big candle and given breakout. Seeing only the breakout we
can’t jump in the trade because it will the make the stop loss big therefore we will wait
for the price action. In case of big green candle breakout we will see the bullish price
action (higher high , higher low ) and make entry at the pullback where the its forming
higher low it will help us to make entry us with bigger players on the retracement and
keep our stop loss small, while in case of red candle breakout we will follow the bearish
price action (lower low, lower high) and make our entry on the retracement where
lower high is forming it will help us to take entry with the bigger players and also help to
keep small stop loss.
PATTERN STRUCTURE
The breakout is done by the big size candle, for taking entry we firstly see the price
action and take entry on the retracement.
PATTERN SUMMARY
 Market opens in between CPR and (PDH/PDL) and make a big candle and do the breakout.
 We wait for the retracement according to bullish and bearish breakout and enter on the
retracement.
 It helps in entering in the trade with small stop loss.
PATTERN PSYCHOLOGY
When market opened in between the CPR and (PDH / PDL) and made a big candle and done
breakout we wait for the retracement to take entry with bigger players that keeps our stop
loss small.

29
Breakaway setup –
The breakaway play is similar to a great hand in poker. When you have a full house or
straight flush, you go “all in” and bet big. Sure, someone might have a better hand than you,
but the odds of winning far outweigh the alternative. Similarly, the fact that you are able to
anticipate a breakaway day allows you to prepare for a potentially big payoff by betting big.
Remember, on a true breakaway or trending day, initiative market participants are the
driving force behind the market. Initiative buyers and sellers push price to new value by
aggressively buying or selling, which invites additional market participation. This conviction
leads to explosive moves in the market.

30
These days are big range days if missed you will miss a major chunk of the profit and if bet
against it without any stop loss then it’s going to ruin your account.
Whenever market opened (gap up or gap down), outside of the previous range it called the
breakaway opening.
These types’ days are influenced by any important news or policy or insider thing.
Market opened outside of the range and continued to move in the direction take the seeing
the nearby resistance or support and keep on trailing stop loss according to the price action
in which direction market is moving.
The opening can be either in the existing trend or its opposite depending upon the news
scenario.
Breakaway day or trending day is moved by initiative players which leads these days to
turned into big range days,
When the market has formed a low-range day in the prior session, the pivots are likely to be
tight, or narrow therefore, we have advanced notice that a potential trending day may be
seen in the upcoming session if the pivots are abnormally narrow. Furthermore, if the
market opens the session with a gap that is beyond the prior day’s price range and beyond
the first layer of the indicator, the chances of reaching pivots beyond the second layer of the
indicator increase dramatically.
Not every breakaways are trending so always trade with your stop loss and came out once
stop loss got hit, because sitting in hope of trending can ruin your capital.
Magnet setup –
Magnet trade occurs when market opens gap at the open of the session. Whenever gap at
the open of the session occurs you can either see a potential breakaway move or fill in the
gap.
Pivot range (CPR) are the equilibrium in the market and it has amazing gravitational pull on
price and it becomes more apparent on the days market gaps at open session and it attracts

31
the price to fill the gap, the high percentage of time market fills the gap that filling of the gap
is called magnet trade.
The logic behind this trade is, it occurs whenever market open gap in the side of existing
trend, then it likely to take a pullback to CPR to fill the gap and for fresh responsive
participants to take entries .
The scenario in which the probability of this setup is most, whenever price open gap and the
previous day closing price level is same to current day CPR or very near to it then probability
of success is high in this setup.
As 63 percent of time market touches CPR so, possibility of this setup increases. It’s likely
occur in the month of January, April, July, and October.
Whenever the market open gap below R1 and above S1 pivot they act as a barrier to price
and price tends to fill the gap, and whenever price open too much at gap then it’s likely to
be failed because then these R1 and S1 act as a roadblock.
This trade setup is very short and simple, never wait too long for more and more once at the
target level, exit out because it’s unlikely other setups, it’s a pullback move in a trend and
you can see a powerful move when the gap is filled so book profit cautiously once at target.
This setup works more efficiently on gap up open in comparison to gap down.
CPR pullback and reversal setup –
CPR is very important zone on the chart, the zone is very powerful and acts as important
support and resistance point, CPR has also the power of attracting the price it, means CPR
acts as a mean for the intraday chart and when market moves in a specific trend and it
pullbacks to the CPR level there additional and fresh entry of responsive players is seen and
that helps to move market in the existing trend.
The CPR pullback and reversal setup is completely based on the logic explained above.
When market in an existing trend, price opened between CPR and (PDH/PDL) make a
pullback movement till CPR and then facing either support or resistance respectively, market
reverse making a candlestick or reversal candlestick pattern in the existing trend.

32
The reversal can be seen from a single full body or pin bar candlestick or reversal candlestick
pattern.
This reversal of price is done by entry of the new responsive players who finds the CPR as a
suitable location for the new additional entry and again let the market to move in the
existing trend.

33
Relationship between opening, location and setup formation –
Most important thing in the market is to watch is live print especially the opening print
because whatever your analysis is to be or whatever your plans for trading to be they all
only will be validated by the live print data only.
There are three possibilities of opening which happens in the market –
1 opening inside range and value
2 opening inside range and outside value
3 opening outside of value and outside of range
CPR and Pivots are marked as important location on the chart. We look for our trading setup to be
formed at these locations. These locations (pivot points) are the calculation of previous day price
movement as explained above with their formulas. We only take trades if our setups formed on the
important locations.
Important locations are like the halts for the price where it make decisions that where it had to go.
Opening inside range and value – low opportunity and low risk
Opening inside range and outside of value – mid opportunity and mid risk
Opening outside range and outside value – high opportunity and high risk

34
RISK MANAGEMENT
In intraday trading, risk management refers to the set of practices and strategies used to
control and limit the potential losses that can occur during a single trading day. Intraday
trading, also known as day trading, involves buying and selling financial instruments within
the same trading day, with all positions closed before the market closes for the day. Due to
the short time horizon and frequent trading, risk management is especially critical for day
traders. Here are some key aspects of risk management in intraday trading:
1. Setting Stop-loss orders: Day traders typically use stop-loss orders to limit their
potential losses on a trade. A stop-loss order is a predetermined price level at which
the trader's position will automatically be closed to prevent further losses if the
market moves against them.
2. Determining Position Size: Intraday traders need to determine the appropriate
position size for each trade based on their risk tolerance and the specific trade's
potential for profit and loss. By limiting the size of their positions, day traders can
manage the overall risk exposure to their trading capital.
3. Risk-to-Reward Ratio: Assessing the risk-to-reward ratio is a crucial aspect of intraday risk
management. It involves comparing the potential profit of a trade (reward) to the potential
loss (risk). Day traders typically look for trades with a favourable risk-to-reward ratio, where
the potential profit is significantly larger than the potential loss.
4. Setting Daily Loss Limits: Day traders often set a daily loss limit, which is the
maximum amount they are willing to lose in a single trading day. Once this limit is
reached, they stop trading for the day to prevent further losses and to avoid
emotional decision-making.
5. Using Risk Management Tools: Some traders may use risk management tools, such
as trailing stop-loss orders or options strategies, to adjust their risk exposure
dynamically as market conditions change throughout the trading day.
6. Avoiding Overtrading: Overtrading is a common pitfall for day traders, where they
take too many trades in a short period, leading to increased transaction costs and
potentially greater risk. A disciplined approach to trading and adhering to a well-
thought-out trading plan can help prevent overtrading.
7. Monitoring Market Volatility: Intraday traders need to be aware of market volatility
as it can impact the potential risk of their trades. High volatility can lead to wider
price swings and increase the likelihood of stop-loss orders being triggered.
In summary, risk management in intraday trading is all about preserving capital and
managing potential losses. Successful day traders focus on protecting their capital through
well-defined risk management techniques, allowing them to stay in the game and capitalize
on short-term trading opportunities while minimizing the impact of adverse market moves.

35
STOPLOSS –
A stop-loss is an order placed by a trader to close a position when the price of the traded
instrument reaches a specified level. The purpose of a stop-loss order is to limit potential
losses on a trade if the market moves against the trader's position.
When a trader enters a position (either a long position, where they buy an asset expecting
its price to rise, or a short position, where they sell an asset expecting its price to fall), they
also place a stop-loss order at a predetermined price level. If the market price reaches or
breaches that level, the stop-loss order becomes a market order, and the position is closed
at the best available price. This helps protect the trader from significant losses in case the
trade doesn't go as expected.
Stop-loss orders are an essential part of risk management in intraday trading. They help
traders define their maximum acceptable loss for a trade before entering it, allowing them
to plan their risk exposure and preserve capital. By using stop-loss orders, traders can
reduce emotional decision-making and avoid large losses that could have a detrimental
impact on their overall trading performance.
It's important for traders to set stop-loss levels carefully based on their risk tolerance, the
volatility of the instrument being traded, and the market conditions. Using stop-loss orders
effectively can contribute to the long-term success of intraday trading strategies. However,
it's also crucial to be aware that in highly volatile markets or during fast price movements,
stop-loss orders may be subject to slippage, and the execution price may differ from the
stop-loss level.
Criteria’s to consider while setting up stop-loss
Setting up a stop-loss in intraday trading involves several criteria that traders should
consider to protect their capital and manage risk effectively. Here are some key criteria to
keep in mind while setting up a stop-loss in intraday trading:
1. Volatility of the Instrument: Consider the average price range and volatility of the
instrument you are trading. More volatile instruments may require wider stop-loss
levels to account for price fluctuations, while less volatile ones may use tighter stop-
loss levels.
2. Time Frame: Intraday traders operate within a short time frame, so the stop-loss
should be set accordingly. Avoid setting stop-loss levels that are too tight, as minor
price fluctuations can trigger premature exits.
3. Support and Resistance Levels: Identify key support and resistance levels on the price chart
using technical analysis. These levels can act as natural stop-loss points, as a breach of a
support level may indicate a trend reversal and the need to exit a long position or vice versa
for resistance levels.
4. Risk Tolerance: Determine how much risk you are willing to take on each trade. This
can be expressed as a percentage of your trading capital or a fixed dollar amount.

36
5. Risk-to-Reward Ratio: Assess the risk-to-reward ratio for each trade. Aim for trades
with a favourable risk-to-reward ratio, where the potential profit is significantly
larger than the potential loss.
6. Recent Price Action: Consider recent price action and trends. Avoid placing stop-loss
levels too close to the current price, as minor fluctuations may trigger unnecessary
exits.
7. Average True Range (ATR): ATR is a technical indicator that measures market
volatility. It can be used to set stop-loss levels, as wider ATR values may indicate the
need for broader stop-loss levels.
8. Market Conditions: Be aware of the overall market conditions and sentiment. Adjust your
stop-loss levels as needed based on the changing dynamics of the market.
9. Avoiding Round Numbers: Some traders avoid setting stop-loss levels at round
numbers (e.g., 100, 50) as these levels can attract stop orders from other traders,
leading to potential stop runs or increased volatility.
10. Avoiding Intraday Price Gaps: Be cautious when trading around news events or
earnings releases, as intraday price gaps can lead to sudden price movements.
Consider wider stop-loss levels to avoid getting caught in a gap.
11. Intraday Trading Strategy: Consider the specific trading strategy you are using.
Different strategies may require different stop-loss placement approaches.
12. Slippage: Be aware that in highly volatile markets, slippage may occur, and your
stop-loss execution price may differ from the stop-loss level you set.
Trailing of stop loss -
Trailing stop-loss is a dynamic risk management technique used in intraday trading
to protect profits and limit potential losses as the market moves in the trader's
favour. Unlike a traditional stop-loss order, which remains at a fixed price level, a
trailing stop-loss order adjusts as the price of the traded instrument moves in the
direction that benefits the trader.
1. Initial Stop-Loss: When a trader enters a position, they set an initial stop-loss order at a
specific price level, just like in traditional stop-loss orders. This initial stop-loss is designed to
limit potential losses if the trade goes against the trader.
2. Tracking Price Movement: As the market moves in the trader's favour and the price
of the instrument increases (in a long trade), or decreases (in a short trade), the
trailing stop-loss dynamically adjusts to maintain a certain distance or percentage
from the current market price.
3. Locking in Profits: The main advantage of a trailing stop-loss is that it allows traders
to lock in profits as the price moves in their favour. For example, if a trader enters a
long position at 50 and sets a trailing stop-loss at 2% below the current market price,
the trailing stop would move up as the price increases. If the price rises to 55, the
trailing stop-loss would automatically adjust to 53.90 (2% below 55), locking in a
profit of at least 3.90 per share.

37
4. Reacting to Reversals: If the price starts to reverse and moves against the trader, the
trailing stop-loss remains at its current level. However, if the price hits the trailing
stop-loss level, the position is automatically closed, protecting the profits captured
during the trade.
5. Balancing Flexibility and Protection: Trailing stop-loss orders offer flexibility by
allowing traders to ride trends and capture larger profits during favourable price
movements. However, they also provide a level of protection by automatically
exiting the trade if the market reverses before the trader can manually adjust the
stop-loss.
It's important to note that trailing stop-loss orders are subject to slippage, just like
traditional stop-loss orders. In highly volatile markets, the execution price may differ
from the stop-loss level, especially during fast price movements.
Trailing stop-loss orders can be an effective tool in intraday trading, helping traders
manage risk, protect profits, and ride trends while avoiding the emotional
temptation to exit winning trades too early. However, traders should be cautious in
highly volatile markets, as excessively tight trailing stops may lead to premature
exits. It's essential to test and adjust the trailing stop distance based on the specific
instrument being traded and market conditions.
Profit booking strategy –
Intraday trading involves buying and selling financial instruments within the same
trading day, with the objective of making profits from short-term price movements.
Booking profits in intraday trading requires discipline and a well-defined strategy.
Here are some common techniques used by traders to book profits in intraday
trading:
1. Target Price: Set a specific price level at which you plan to take profits before
entering the trade. When the market reaches your target price, close the position
and book the profit. This approach requires discipline to stick to your predefined
targets.
2. Trailing Stop-Loss: Use a trailing stop-loss order that automatically adjusts upward
(for long positions) as the price of the instrument rises. This helps lock in profits
while allowing the trade to continue as long as the price keeps moving in your
favour.
3. Technical Indicators: Use technical indicators, such as moving averages, RSI (Relative
Strength Index), MACD (Moving Average Convergence Divergence), or Bollinger
Bands, to identify potential overbought or oversold conditions. When an indicator
suggests a potential reversal, consider booking profits.
4. Support and Resistance Levels: Pay attention to key support and resistance levels on
the price chart. When the price approaches a significant resistance level, consider
booking profits on long positions. Likewise, when the price approaches a crucial
support level, consider taking profits on short positions.
5. Time-Based Exits: Some intraday traders use time-based exits, where they close their
positions at a specific time, regardless of the profit or loss. This approach can be

38
suitable for traders who want to avoid holding positions too close to the market
close.
6. Breakout Strategy: If you are trading breakouts, book profits when the price breaks
above resistance or below support levels. These breakout points are often associated
with increased momentum, providing good profit-taking opportunities.
7. Scalping: In scalping, traders aim to make small profits from multiple quick trades
throughout the day. They book profits as soon as the trade moves in their favour by
a few ticks or points.
8. News-Based Trading: If you're trading based on news events or earnings releases,
consider booking profits quickly after the market reacts to the news. News-driven
price movements can be volatile and short-lived.
9. Volatility Targets: Consider booking profits based on the volatility of the instrument.
For example, if the price has moved a certain percentage or ATR (Average True
Range), consider taking profits.
10. Price Patterns: Identify and trade specific price patterns, such as flags, pennants, or
head and shoulders. Book profits when the pattern confirms and reaches its
projected target.
Remember that intraday trading involves rapid decision-making and can be highly
emotional. Having a clear trading plan, including profit-taking strategies, is essential
to maintaining discipline and avoiding impulsive decisions. Test different profit-
booking techniques in a demo or paper trading environment to find what works best
for your trading style and risk tolerance before implementing them in live trading.
Position sizing –
Position sizing in intraday trading refers to the process of determining the number of
shares, contracts, or lots that a trader should trade in a particular trade or position.
It is a crucial aspect of risk management and helps traders manage the amount of
capital they put at risk in each trade. Proper position sizing is essential to protect a
trader's account from excessive losses and to optimize potential profits.
The goal of position sizing is to strike a balance between taking advantage of
profitable opportunities and limiting the potential downside. The size of a position in
intraday trading is usually determined by factors such as the trader's risk tolerance,
the volatility of the market, and the trader's overall trading strategy.
Here are some common methods of position sizing in intraday trading:
1. Fixed Amount: In this method, the trader decides on a fixed dollar amount they are
willing to risk on each trade. For example, if the trader decides to risk 100 per trade,
they would adjust the position size based on the difference between the entry price
and the stop-loss price.
2. Percentage of Account: Traders may choose to risk a certain percentage of their
trading account on each trade. For instance, if a trader risks 2% of their account on
each trade and their account size is $10,000, they would risk $200 per trade.

39
3. Volatility-Based Position Sizing: Some traders adjust their position size based on the
volatility of the market or the specific security they are trading. Higher volatility may
lead to smaller position sizes to account for larger price swings.
4. Fixed Number of Shares/Contracts: In this approach, the trader decides on a fixed
number of shares or contracts they will trade for each position, regardless of the
price of the asset or the risk involved.
Regardless of the method used, position sizing is closely tied to the placement of
stop-loss orders. A stop-loss order is a predetermined point at which a trader will
exit a trade to limit potential losses. Position sizing helps ensure that the potential
loss on a trade is within the trader's risk tolerance and overall trading plan.
Intraday trading can be highly volatile and fast-paced, so having a well-defined
position sizing strategy is essential to maintaining discipline, managing risk, and
improving the overall performance of a trader's portfolio. Traders should also keep
in mind that position sizing alone cannot guarantee profits but is an important
component of a comprehensive trading plan.
Money management -
Money management is a crucial aspect of intraday trading as it directly affects the long-
term success and sustainability of a trader's portfolio. Here are some effective money
management techniques specifically tailored for intraday trading:
1. Risk-Per-Trade Rule: Determine a fixed percentage of your trading capital that you
are willing to risk on each trade. A commonly recommended risk percentage is
between 1% to 2% of your trading capital per trade. This means that if you have a
10,000 trading account and you are risking 1% per trade, the maximum amount you
would risk on any single trade would be 100.
2. Stop-Loss Orders: Always use stop-loss orders for every trade. A stop-loss order
helps limit potential losses by automatically exiting a trade if the price reaches a
predetermined level. Placing a stop-loss order is essential to ensure you don't let
losing trades run too far, protecting your capital from substantial drawdowns.
3. Position Sizing: As discussed earlier, position sizing is crucial in intraday trading.
Calculate your position size based on your predetermined risk percentage and the
difference between your entry price and stop-loss price. Avoid over-leveraging and
keep your position size within your risk tolerance limits.
4. Risk-Reward Ratio: Evaluate potential trades based on their risk-reward ratio. A
favourable risk-reward ratio means that the potential profit of a trade is significantly
larger than the potential loss. Aim for trades with a risk-reward ratio of at least 1:2
or higher to increase the probability of profitable trades.

40
5. Trade with a Trading Plan: Develop a well-defined trading plan that includes your
trading strategy, risk management rules, and profit-taking targets. Stick to your plan
and avoid impulsive decisions driven by emotions.
6. Use Trailing Stops: Consider using trailing stops for profitable trades. A trailing stop
allows you to adjust the stop-loss price as the trade moves in your favor, locking in
profits while still giving the trade room to breathe.
7. Diversification: Avoid putting all your capital into a single trade or a handful of
trades. Diversify your trades across different assets or securities to spread the risk.
8. Avoid Overtrading: Overtrading can lead to unnecessary losses and increased
transaction costs. Stick to your predefined trading strategy and take only high-quality
setups.
9. Keep Emotions in Check: Emotional decisions can lead to poor money management
choices. Maintain discipline and avoid chasing losses or taking excessive risks to
recover from a losing trade.
10. Regularly Review and Adjust: Periodically review your trading performance and
money management strategies. Adjust your risk parameters if necessary based on
your trading results and experiences.
Remember, intraday trading involves rapid decision-making and fast-paced markets.
Implementing effective money management techniques can help you stay in the game and
increase the likelihood of consistent profitability over the long term.
Pre market analysis –

41
Pre-market analysis is an essential part of intraday trading, where traders study various factors
before the regular trading session begins. It allows traders to gather valuable information and make
informed decisions when the market opens. Here's an explanation of pre-market analysis in intraday
trading:
1. Market News and Events: Traders should keep an eye on overnight news and events that
may impact the market's direction. This includes economic reports, company earnings
announcements, geopolitical developments, and any other news that could influence
market sentiment.
2. Economic Indicators: Important economic indicators released before the market opens can
significantly impact the market's opening direction. Key indicators like GDP growth,
employment data, inflation rates, and central bank decisions should be considered.
3. International Markets: Since global financial markets are interconnected, it's important to
analyse how major international markets are performing before your market opens.
Movements in international markets can influence your local market's opening and intraday
trends.
4. Stock-Specific News: If you're trading specific stocks, it's crucial to analyse any news or
announcements related to those companies. Earnings reports, management changes,
mergers, or acquisitions can significantly impact the stock's price.
5. Technical Analysis: Pre-market hours provide an opportunity to perform technical analysis
on the price charts of stocks or indices. Traders can identify support and resistance levels,
trends, and other key technical patterns to plan their trading strategies.
6. Trading Volume and Liquidity: Check the trading volume and liquidity during pre-market
hours. Low volume can result in wider bid-ask spreads, increasing the cost of trading, and
potentially leading to price manipulation.
7. Gaps: Identify if there are any significant gaps in stock or index prices compared to the
previous day's closing price. Gaps can indicate strong market sentiment and potential
trading opportunities.
8. Futures and Futures-Options Data: Analyse the movement of futures and futures-options
contracts before the regular market session. This information can provide insights into
market sentiment and potential price directions.
9. Market Sentiment: Gauge market sentiment during pre-market hours by observing the
behaviour of futures, options, and other derivative instruments. This can provide clues about
how the market is likely to open and intraday trends.
10. Formulate a Trading Plan: Based on the pre-market analysis, develop a trading plan that
outlines potential entry and exit points, stop-loss levels, and profit targets. Having a well-
thought-out plan can help you stay disciplined during the trading session.
Remember, pre-market analysis is just one part of the overall trading strategy. Once the regular
trading session begins, monitor the market closely, and be ready to adapt to changing conditions.
Trading involves risk, so it's essential to use risk management techniques and only trade with money
you can afford to lose.
How we do pre market analysis

42
As we use pivots and CPR indicator for our trading and these are the average of previous day price
movement, therefore we are able to find these level before the live market and that helps us to find
out about the two day’s pivot relationship, about the width of the CPR, and it helps us to make us
plan for our day.
Things we conclude in our pre market analysis,
 Previous day price range.
 Type of candle formed on daily time frame
 Current trend on daily timeframe.
 Two day CPR relationship on daily timeframe.
 Marking of V.CPR if any, marking of swing high – swing low, and important support and
resistance on daily timeframe.
 Writing the plan how to act in the market for the day.
Post Market Analysis –
Post-market analysis, also known as after-market analysis, refers to the evaluation of trading
activities and market movements that occur after the regular trading session has ended. It involves
reviewing and assessing the performance of trades made during the trading day, as well as analysing
any significant events or news that occurred after the market closed. Here's a detailed explanation
of post-market analysis:
1. Reviewing Trade Performance: Traders conduct a review of their intraday trades to analyse
their performance. They assess the success or failure of each trade, including entry and exit
points, stop-loss levels, and profit targets. This analysis helps traders identify what worked
well and what didn't, enabling them to learn from their experiences and make better trading
decisions in the future.
2. Market Closing Prices: Traders take note of the closing prices of the assets they traded
during the regular market session. Closing prices can be crucial indicators for some trading
strategies, such as those based on daily candlestick patterns or moving averages.
3. Late Breaking News: Sometimes, significant news or events might occur after the regular
trading hours, which can affect the market sentiment and asset prices. Traders need to be
aware of these developments as they might influence their trading decisions the next day.
4. After-Hours Trading Data: In some markets, after-hours trading allows investors to continue
buying and selling stocks and other assets outside of regular trading hours. Post-market
analysis may include a review of after-hours trading data to gauge the market sentiment and
potential opening direction for the next trading session.
5. Earnings Releases and Reports: For companies that report earnings after the market closes,
traders need to review these reports to understand how they might impact the stock's price
the following day.
6. Corporate Announcements: Analysis of any significant corporate announcements, such as
mergers, acquisitions, management changes, or regulatory developments that happened
after the market closed, is essential to understand their potential impact on the market.

43
7. Overnight Developments: Traders also keep an eye on global events and developments that
occur overnight, as they may influence the market's opening and intraday trends.
8. Formulate Next Day's Plan: Based on the post-market analysis, traders formulate a plan for
the next trading day. This plan may include identifying potential trading opportunities,
setting price levels to watch, and considering risk management strategies.
9. Learning and Improvement: Post-market analysis is a valuable learning tool for traders. It
allows them to identify strengths and weaknesses in their trading strategies, make
adjustments, and continuously improve their skills and decision-making.
In conclusion, post-market analysis is a critical part of a trader's routine. It helps traders gain insights
into their past performance, assess market developments beyond regular trading hours, and prepare
for the next trading session with a more informed approach.
Trade Journal –
A trade journal, also known as a trading journal or trading log, is a record-keeping tool used by
traders to document and analyse their trading activities. It serves as a valuable resource for traders
to review their past trades, identify patterns, strengths, weaknesses, and continuously improve their
trading strategies. Here's a simple format for making a trade journal:
Trade Journal Format:
1. Trade Date: Date when the trade was initiated.
2. Trade Entry Time: The time when you entered the trade.
3. Trade Exit Time: The time when you exited the trade.
4. Trading Instrument: The financial instrument or asset you traded (e.g., stock, currency pair,
commodity).
5. Direction: Whether it was a long (buy) or short (sell) trade.
6. Trade Size/Quantity: The number of shares or contracts traded.
7. Entry Price: The price at which you entered the trade.
8. Exit Price: The price at which you exited the trade.
9. Trade Duration: The duration of the trade (exit time minus entry time).
10. Profit/Loss: The realized profit or loss from the trade.
11. Reason for Trade: The rationale or analysis behind taking the trade. Mention technical
indicators, patterns, or fundamental factors that influenced your decision.
12. Trade Management: Describe any adjustments or actions you took during the trade, such as
moving stop-loss, adding to the position, or scaling out.
13. Emotional State: Rate your emotional state during the trade (e.g., calm, anxious, confident).
This helps you identify the impact of emotions on your trading decisions.

44
14. Market Conditions: Note the prevailing market conditions (e.g., trending, choppy, volatile)
during the trade.
15. Notes and Observations: Write down any additional notes or observations about the trade,
market behaviour, or any other relevant factors.
16. Lessons Learned: Reflect on the trade and note any lessons learned, whether positive or
negative. This helps you avoid repeating mistakes and reinforce successful strategies.
17. Trade Outcome Analysis: Analyse the trade outcome in more detail, considering factors like
the effectiveness of your entry and exit points, risk-to-reward ratio, and adherence to your
trading plan.
18. Overall Assessment: Give an overall assessment of the trade (e.g., successful, unsuccessful,
could be improved).
By consistently maintaining a trade journal, you can gain valuable insights into your trading
performance, patterns, and tendencies over time. This, in turn, will help you refine your trading
strategy, enhance decision-making, and ultimately become a more disciplined and successful trader.
You can maintain your trade journal in a physical notebook, a spreadsheet, or even use specialized
trading journal software available in the market. The key is to be consistent and diligent in recording
and analysing your trades.
Common psychological challenges faced by traders
This fast-paced and high-stakes environment can present traders with various
psychological challenges. Some of the common psychological challenges faced by
traders in intraday trading include:

45
1. Emotional Rollercoaster: Intraday trading can lead to extreme emotional highs and lows, as
traders experience the excitement of potential gains and the stress of potential losses within
a short period. Managing emotions and avoiding impulsive decisions is crucial.
2. Fear and Greed: Fear of missing out (FOMO) on a potentially profitable trade and greed for
higher profits can cloud judgment and lead to irrational decision-making. Traders may
overtrade or take unnecessary risks, disregarding their trading plan.
3. Loss Aversion: Traders may develop a strong aversion to losses, which can lead them to hold
onto losing positions in the hope that the market will reverse. This can result in larger losses
and hinder the ability to cut losses quickly when necessary.
4. Confirmation Bias: Traders may seek out information that supports their preconceived
notions about a trade and ignore information that contradicts their beliefs. This bias can
prevent them from making objective and rational decisions.
5. Overtrading: The fast-paced nature of intraday trading can tempt traders to overtrade,
constantly seeking opportunities and making excessive transactions. Overtrading can lead to
increased transaction costs and reduce overall profitability.
6. Impulsivity: Rapid price movements in intraday trading can lead to impulsive decision-
making. Traders may enter or exit positions without thoroughly analysing the market
conditions or considering their trading strategy.
7. Stress and Burnout: Constantly monitoring the markets and making quick decisions can be
mentally exhausting, leading to stress and potential burnout. Psychological well-being is
crucial for maintaining trading discipline.
8. Cognitive Biases: Traders are susceptible to various cognitive biases, such as anchoring,
regency bias, and hindsight bias, which can distort their perception of the market and
influence decision-making.
9. Lack of Patience: Intraday traders may struggle with the need for instant gratification, which
can lead them to exit positions prematurely or enter trades without proper confirmation.
10. Isolation: Intraday trading is often a solitary activity, and traders may face feelings of
isolation and lack of support, which can further impact their emotional well-being.
To overcome these challenges, traders can work on developing a well-defined trading
plan, using risk management strategies, setting realistic expectations, and continuously
improving their emotional intelligence and self-awareness. Seeking support from
mentors or joining trading communities can also provide valuable insights and reduce
feelings of isolation.
Emotion management and decision-making –
Managing emotions and making rational decisions in intraday trading is crucial for
success. Here are some strategies to help you manage emotions and improve decision-
making:

46
1. Have a Trading Plan: Create a well-defined trading plan that includes entry and exit criteria,
risk management strategies, and profit targets. Having a clear plan can reduce emotional
reactions and keep you focused on your trading strategy.
2. Use Stop-Loss Orders: Always set stop-loss orders for each trade to limit potential losses.
This helps prevent emotions from taking over when a trade goes against you, as the stop-
loss order will automatically execute without your intervention.
3. Practice Discipline: Stick to your trading plan and avoid deviating from it based on emotions
or impulse. Avoid chasing after quick profits or trying to recover losses in a hasty manner.
4. Risk Management: Determine how much of your trading capital you are willing to risk on
each trade. A common rule of thumb is to risk no more than 1-2% of your trading capital on
any single trade.
5. Pre-Define Entry and Exit Points: Decide on your entry and exit points before entering a
trade. This will prevent you from making emotional decisions during the trade.
6. Avoid Overtrading: Set a limit on the number of trades you will make in a day. Overtrading
can lead to exhaustion and impulsive decisions.
7. Take Breaks: The fast-paced nature of intraday trading can be mentally and emotionally
draining. Take short breaks between trades to clear your mind and stay focused.
8. Manage Expectations: Realize that not every trade will be profitable, and losses are a part of
trading. Avoid setting unrealistic expectations for yourself and your trades.
9. Practice Mindfulness: Being aware of your emotions and how they can affect your decisions
is essential. Practice mindfulness techniques to stay calm and centered during trading hours.
10. Review and Learn: After each trading day, review your trades and identify areas where
emotions may have influenced your decisions. Learn from both your successes and mistakes
to improve your trading skills.
11. Seek Support: Engage with other traders or join trading communities where you can discuss
your experiences and emotions. Sharing insights and challenges can be beneficial for
emotional well-being.
12. Consider Professional Help: If you find that emotions are consistently interfering with your
trading decisions, consider seeking help from a trading psychologist who specializes in
dealing with traders' emotional challenges.
Remember, managing emotions in intraday trading is an ongoing process. It requires
self-awareness, discipline, and continuous practice. By implementing these strategies,
you can enhance your emotional intelligence and make better decisions in your day
trading activities.
Maintaining discipline and sticking to your plan –
Maintaining discipline and sticking to an intraday trading plan can be challenging, but
there are some simple ways to help you stay on track:

47
1. Write Down Your Trading Plan: Put your trading plan in writing. This act alone can help
solidify your commitment to it. Include your trading strategies, risk management rules, and
profit targets.
2. Create a Checklist: Before entering any trade, have a checklist based on your trading plan.
This could include specific technical indicators or criteria that need to be met before
executing a trade.
3. Use Stop-Loss Orders: Always use stop-loss orders to limit potential losses. This way, you
won't be tempted to hold onto losing trades in the hope they will reverse.
4. Set Realistic Goals: Set achievable daily or weekly goals for your trading performance.
Having realistic targets can keep you focused and prevent overtrading or trying to make up
for losses hastily.
5. Avoid Overtrading: Set a maximum number of trades you will take in a day or a week.
Overtrading can lead to emotional exhaustion and hasty decisions.
6. Trade Only During Active Hours: Focus on trading during the most active hours when the
market is most liquid and volatile. This can reduce the temptation to trade during slow
market conditions.
7. Stay Informed, but Don't Overdo It: Keep yourself updated with relevant news and market
developments, but avoid over-analyzing or getting caught up in every piece of information.
Stick to your trading plan and strategy.
8. Practice Patience: Be patient and wait for the right trading setups that align with your plan.
Avoid the urge to enter trades impulsively.
9. Track Your Progress: Keep a journal of your trades, including reasons for entering and
exiting, emotions felt during the trade, and the outcome. Review your journal regularly to
learn from your experiences and identify areas for improvement.
10. Minimize Distractions: Create a dedicated trading space that is free from distractions.
Minimize interruptions during trading hours to maintain focus.
11. Seek Accountability: Share your trading goals and progress with a trading buddy or mentor.
Having someone to hold you accountable can help you stay disciplined.
12. Reward Yourself: Celebrate your successes, no matter how small. Positive reinforcement
can help you stay motivated and disciplined.
Remember, discipline is a skill that develops over time through consistent practice. Be
patient with yourself and stay committed to your trading plan. If you find yourself
straying from your plan, take a step back, identify the cause, and make adjustments as
needed. With practice and perseverance, you can improve your discipline and increase
your chances of success in intraday trading.
Making a trader routine –
Morning Preparation (Pre-Market):

48
1. Market Research: Before the market opens, review financial news, economic indicators, and
corporate announcements that may impact the market.
2. Identify Potential Trades: Based on your analysis, create a watch list of potential stocks or
financial instruments to trade during the day.
3. Set Price Alerts: Identify critical price levels on your watch list and set price alerts to be
notified when those levels are reached.
4. Review Your Trading Plan: Remind yourself of your trading plan and the strategies you
intend to use during the day.
During Market Hours:
5. Start Trading: Once the market opens, begin executing trades based on your pre-defined
watch list and trading plan.
6. Stick to Your Plan: Follow your trading plan diligently and avoid making impulsive decisions
based on emotions or market noise.
7. Take Breaks: It's essential to take short breaks during trading hours to rest your mind and
refocus. Stepping away from the screen for a few minutes can help maintain discipline.
8. Monitor Positions: Keep a close eye on your open positions, and if necessary, adjust stop-
loss levels or take profits according to your plan.
9. Avoid Overtrading: Stick to the trades on your watchlist and avoid chasing after every
opportunity that presents itself.
Post-Market Hours:
10. Review Your Trades: After the market closes, analyze your trades for the day. Review what
worked well and what didn't, and identify areas for improvement.
11. Update Trading Journal: Document the details of each trade in your trading journal,
including reasons for entry and exit, emotions felt, and lessons learned.
12. Reflect on Performance: Take some time to reflect on your overall performance for the day
and whether you stuck to your trading plan.
13. Plan for the Next Day: Based on your analysis of today's trades and market conditions, start
preparing for the next trading day. Identify potential trades and update your watch list.
Weekly Routine:
14. Weekend Review: Dedicate time over the weekend to review your weekly performance.
Analyse your trading journal and identify patterns or habits that need improvement.
15. Continuing Education: Allocate time each week for self-improvement. Read trading books,
watch educational videos, or attend webinars to enhance your trading knowledge and skills.
Remember, adapt this routine to your specific needs and trading style. The key is to
establish a routine that helps you stay disciplined, focused, and well-prepared for your
intraday trading activities.

49
PROTIPS
Few live market pro-tips:

50
1. Always take trade only at important levels after formation of proper setup with stop loss,
and according to your analysis and when there is lots of confusion don’t trade wait till
recognizable setup or skip the day because market opens daily.
2. Always keep your stop loss small and profit targets big and Use trailing stop loss to
maximize the profit size when market moving in your direction strongly.
3. Follow the discipline and don’t give more than two stop loss in a day and don’t overtrade.
4. Trade your plan according to the live print.
5. Always wait for retracement if stop loss is big after setup formation or keep the stop loss
according to predefine manual stop loss.
6. Virgin price zones are important levels and most of time its gap is filled, if price opened at
nearby levels of virgin zone and formed any reversal setup in first 60 minutes of trading
hour then you can trade it with reversal setups and if price reached that level in late
session use that level for booking the profit not to trade reversal in late trading session.
7. As a matter of fact, many of biggest days occurs when the market completely disregards
the day’s script and behaves in a manner that is unexpected.
8. Always trade in the direction of the existing trend and see formation of your setups on
levels according to your trend then only take entry, don’t trade on setup formation which
do not follow the trend. Play only breakaways move after getting its all criteria fulfilled.
9. Either your trade is wrong or correct doesn’t matter but your stop loss is your real
protector in all case, so don’t enter the game without your protection.
10. Always wait for the closing of the candle while formation of the setup then only take the
entry, and once price touched your stop loss just get out of the trade don’t wait for the
closing of the candle or in hope it will reversed otherwise you will be in danger and it
might lead a very big loss, so simply get out.
1. Trading is the game of speed, no emotions required here, always get updated and maintain
your speed, no mercy you will get here, be ruthless.

51
2. For entry in the trade always wait for candle closing confirmation and during stop loss if
price touches the stop loss mark just get out don’t wait for the closing, that’s the rule to in
and out.
3. I love trading very much, for lot of the reasons but the most important one is, it is a pre-
planned game, in intraday trading we have set of plans on which we have to do only
execution, there is no rocket science here, we have plan for the entry in the trade, exit from
the trade, stop loss, trailing stop loss, taking no trade plans and many more. We to only
follow our plan with discipline and nothing more. The whole conclusion is either you making
profits or doing loss or no trading everything is under control.
4. Don’t trade on Budget day or on the announcement of any big news day because no price
action or technical works on that day.
5. Don’t trade randomly any product, choose few index and stocks and trade only them,
trading similar products daily you are easily able to recognize their behavior.
6. After getting entry setup if stop loss is big wait for the retracement or you can say
negotiation of price then only take entry don’t directly jump in the trade.
7. Trading is the correlation and understanding of price, played by buyers and sellers. Be
on the right side and enjoy the game.
8. Whenever a setup formed and signal candle is big keep the stop loss at half of the candle or
according to your manual stop loss process.
9. After entry in the trade lock everything, target, stop loss, trailing stop loss and don’t do
analysis that time because live market is for doing actions.
10. When you are option buyer go with in the money {ITM} strike price when near to expiry.
11. Every trending day not only lead by initiative players.
12. Psychology after getting big loss, at that time the thing which runs in our mind after getting
our stop loss hit is action of fear and greed and then we try to bet on opposite side
predicting that if market will flow in your direction your entire loss will be covered this
makes your position sizing even more big and you end up with more and even more loss, so
if you got any day your stop loss hit twice close the screen for the day because the rule is
same you have to come another day again use your wisdom not emotions because it works
always.
13. While trading be always in alert mode trust your analysis and do according to your rules like
once price hit your mark means you are out, don’t wait on the basis of upcoming thoughts
either its stop loss, target, or trailing stop loss, price once hit at that mark you are out of the
trade.
14. Market changes its trends after giving signal of sideways market.
15. Trading is a very simple thing all require is to have control on what you are doing

52
Email – smashfintech@gmail.com

MASTERING THE INTRADAY.pdf

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to MASTERING THE INTRADAY.pdf

Similar to MASTERING THE INTRADAY.pdf (20)

More from Smash Fintech

More from Smash Fintech (20)

Recently uploaded

Recently uploaded (20)

MASTERING THE INTRADAY.pdf