about trading

1. SWING IS KING INTHE STOCK MARKET

2.  SWING trading
 A STYLE OFTRADINGWHEREWE HOLD ONTO OURTRADE
FOR A LONGER PERIOD OFTIME
 TIME PERIOD – FROM ONEWEEKTO EVEN MORE..
 TIME FRAME FOR ANALYSIS – 1 DAY

3. CAN GRAB BETTER RETURNS
LOWER RISK
LESS STRESS
GOOD FORWORKING PROFESSIONALS
UNIVERSALAPPLICATIONS

6.  THE CONCEPTSTHATWE USE IN SWINGTRADINGWORKS
EVERYWHERE I.E. IN COMMODITIES, FOREX, CRYPTO AND
IN INTRADAY ASWELL.
 SWINGTRADING HELPS IN FORMINGA GOOD
UNDERSTANDING OF PRICE ACTION.

7.  BASE FORMATION
 INTHISWETAKE ATRADE AFTERTHETREND IS REVERSED.
 CONTINUATION
 INTHISWE GOWITHTHETREND

10.  BASE FORMSTION IS ACCUMULATION BASICALLYA
REVERSALTRADE.
 AFTER A GOODTREND, A BASE IS FORMED ANDWE
EXPECT A REVERSAL.
 BASE FORMATIONATVALUE IS A HIGH PROBABLETRADE

16. WHENWE ARE IN ATREND MARKET USUALLY
CONSOLIDATES (RE-ACCUMULATION) ANDTHEN
CONTINUES ITSTREND.
DURING PHASE OF CONSOLIDATIONWE CAN OBSERVE
DIFFERENT STRUCTURES LIKE
ASCENDINGTRIANGLE – SAME HIGH BUT HIGHER LOWS
DESCENDINGTRIANGLE – SAME LOW BUT LOWER HIGHS
RALLY – BASE – RALLY –TIGHT CONSOLIDATION

20.  FOR STOCK SELECTION INSTEAD OF ANALYSING EACH
STOCK ONE CAN ANALYSE SECTORSTREND.
ONCEWE ANALYSETHE SECTORSWHICH LOOK BULLISH,
WE HAVETO IDENTIFYTHE RIGHT STOCKS INTHAT SECTOR.
USUALLY A STRONG SECTORWOULD LIFTALL IT’S
PARTICIPANTS ,
MOST OF OUR RECENT PICKS INTHE CEMENT , IT AND
ENERGY STOCKSWAS BASED ON SECTORAL ANALYSIS
WEWILL SHARE AWATCHLIST OF FNO STOCKS , ALONG
WITH SECTOR ,THATYOU CANTRACK FOR SWINGTRADING.

25.  WE USUALLY LOOK FOR LONGTRADES IN SWING AND ENTER
THROUGH CASH.
 WE CAN GO FOR SHORTTRADES AS WELLTHROUGH
FUTURES BUT FUTURES CARRY A LOT OF OVERNIGHT RISK.
 AND HENCE FORTH IFYOU ARE A BEGINNER,YOU ARE
SUGGESTEDTOTRADE IN CASH MARKET ONLY
 IN CASE OF FUTURES IFTHERE IS A GAP UP/GAP DOWN
OPENING IT CAN BE A CAPITAL DESTROYER DUETO HIGH
EXPOSURETO MARGINS.
 SO IN CASE OF CIRCUITS FUTURES MIGHTTURN OUTTO BE A
BOON OR BANE!

26.  There are three types of entries
 - breakout entry ( Always prefer to enter half at breakout and
rest half at continuation ) – This is applicable for DayTrading as
well
 - Retest and continuation
 - Aggressive entry

27.  The entry is based on daily time frame candle
 Ideal time to enter in swing trade with a conservative
approach is to enter next day above the high of the breakout
candle
 Entry shall be made only if there is a proper candle closing
above all the nearest resistance
 A proper candle closing above resistance suggest a clear
strength of the buyers
 This approach is very suitable fore a working professional as
you can do the analysis after the market hours

28. We’re Going to enter
next day on a 5 minutes
candle closing above the
high of breakout candle
BREAKOUTCANDLE OBSERVEDAT 3:00 PM

29.  STEP 1: IDENTYFYA STOCKTHAT IS FORMINGA GOOD
PRICE ACTION STRUCTURE
 STEP 2: SET AN ALERT ATTHE BREAK OUT LEVEL
 Wait for the breakout candle
 STEP 3; ENTER NEXT DAY ABOVETHE breakout CANDLE if
the breakout candle is sustainable
Note – “ Add volume confirmation to take quality trades “
1) High bar volumes usually don’t give a retest

32.  Retest refers to prices giving a breakout and then there is a small profit booking
 After the profit booking , the stock again breaks its recent retracement and continues
its up move
 This is a high probable entry as it confirms the breakout by trapping the weak hands
 The advantage of the system is that it can help you in avoiding a lot of fake breakouts
 The disadvantage of the system is that at times strong breakout may not give any
retracement
 The disadvantage is that at times , the risk to reward may not be that favorable

33.  AFTERTHE BREAKOUTTHEREWAS A SMALL
RETRACEMENT AND CONTINUATION
 THE CONTINUATIONCONFIRMSTHE BREAKOUT
RESISTANCE LEVEL
THIS PINBAR SIGNIFIESTHAT NOWTHIS LEVEL ISACTINGAS SUPPORT

34. NO CONTINUATION
BULLISH ENGULFINGON SUPPORT

38.  STEP 1: IDENTYFYA STOCKTHAT HAS GIVENA BREAKOUT
ON DAILYTIMEFRAME CLOSING BASIS
 STEP 2: WAIT FOR A RETEST ( 1ST ENTRY ) ANDTHENA
SMALL RETRACEMENT AND CONTINUATION ( however ,
just A retest can be a Low risk / High rewarding trade )
 STEP 3; ENTER IFTHE CONTINUATION SUSTAINS ON A
DAILYTIMEFRAME

39.  THIS IS FOR SOMEONEWHO IS ACTIVELY ENGAGING IN
THE MARKETS.WE ENTER ONTHE SAME DAY.
 STEP1: SET AN ALERT FORWHEN STOCK ISTRADING NEAR
BREAKOUT LEVEL.(Trading view alerts are good , but they’re
paid , one can use webull )
 STEP 2: ENTER IF 1 HOUR / 15 min CANDLE CLOSESABOVE
BREAKOUT AREA.

40. STOCK NEAR
BREAKOUT
AREA
ALERT PLACED
WHEN STOCK IS
NEARTHIS ZONE 1000
SAYTHE LEVEL IS
1000 ALERT PLACED
WHEN STOCK
AROUND 990
ALERTTRIGGERED
1DTIMEFRAME

41.  ONTHE SAME DAY OF BREAKOUT IF 15 / 60 MINUTES
CANDLE CLOSES ABOVE OUR BREAKOUT ZONEWEWILL
ENTER.
 KINDLY KEEP ALERTS ONTHE LEVEL OF BREAKOUTS ( Let’s
do it now )

44.  Pick one entry style , and take next 5 trades with the same
system
 Pick the scanner as per your trading style
 Journal the trades
 Understand the pro’s and cons of the system
 Pick one style

45.  IN SWINGTRADINGWE SIZE OUR POSITION BASED ON
CAPITAL.
ONE CAN DEPLOY 5 % OF CAPITAL ON ONE STOCK
FOR EXAMPLE
YOU HAVE 1 LAC
ONE CAN INVEST 5000 IN ONE STOCK I.E. 5-10%
WE CAN STARTWITH 5% AND IFTHE MOVE GOES IN OUR
FAVORWE CAN ADD MORE UPT0 10 PERCENT

46.  THERE ARE MANYWAYSTO PUT A STOP LOSS HOWEVERWE
SUGGESTTHATYOU PUT A STOP LOSS BELOWTHE NEAREST
RETRACEMENT
 THESE RETRACEMENTSARE A SAFE PLACETO PUT A STOP
LOSS
 PLEASE NOTETHAT INTHE CASH MARKET ,WE ALWAYSWAIT
FOR A END OFTHE DAY STOP LOSS AS A LOT OFTIMES DURING
A CHOPPY MARKET ,THE STOCK MAY RETRACE JUSTTOTAKE
YOUR STOP LOSS , SOWE PREFERTO CLOSETHE POSITION
ONLY IF A CANDLE CLOSES BELOWTHE STOP LOSS LEVEL
 HENCE FORTH ,WE ALWAYS HAVE A EOD STOP LOSS

49.  Below the entry candle
 Below the retracement ( U – turn )
NOTE - : “ as we’re trading in the cash market , our stop loss will
always be on closing basis “

50.  For day trading we use 5 minutes timeframe
 Let’s say , you identified that there’s a breakout from a strong
resistance on a daily timeframe , however you want to enter it
for day trading to catch the momentum
 Then you can apply the same concept of retracement on a 5
minutes timeframe as the Stop loss

52.  Booking profit’s is a very subjective matter , as some trader’s
prefer a high win rate , however , a certain trader’s prefer to
book big gains
 Nearest supply or demand zone shall be marked in order to
identify nearest target
 It is highly suggested to aim for 1:2 and then trail your stop
loss effectively to run your profits
 we will have dedicated session on risk management trailing
stop loss and running profits

53.  -WITH RETRACEMENT
 -WITH EXPONENTIAL MOVINGAVERAGE 20 EMA

56. ENTRY CANDLE
SL
NEW SL
NEW SL
SLTRIGGERED

57.  We use a scanner which gives stocks that are ready for high probable breakout
 The classical way is to manually identify stocks that are forming a good structure ,
and put alerts on them.
1. EOD scanner – “in this case we look stock have given breakout at end of the day”
2. LIVETelegram alerts – “ the alert will notify the stocks that give breakout during
live market and suitable for aggressive trader ”
NOTE –” just because stock comes in the scanner , don't jump in to the trade , always
make sure that its breaking good structure ”

58.  Alert’s are the best way to ensure that we don’t engage with
the charts unnecessarily
 It also ensures that we don’t take random trades
 You just have to place the alerts , and then wait for the
notification to enter into a trade
 This will surely reduce your screen time
 You can either use tradingview alert’s or you can simply use
zerodha’s sentinel / webull which gives alerts through mail

59.  https://chartink.com/screener/20-day-breakout-stocks
(The above scanner is the prime scanner to look for breakout stocks
) – to be used at EOD – ( apply this first on FNO stocks )
https://www.tickertape.in/ (Ticker tape.in ) – Beginner Friendly
 Live market alerts – “ similar to the above logic , there are alerts
that come in our telegram channel , but in the live market “ , the
above alerts to be used by aggressive trader’s for short term
trading “

60.  If you’re beginner , take swing on NIFTY 50 stocks (
understand that you have a limited capital , also nifty 50 stock
options are liquid , so you can take forward the same
knowledge in options too )
 Secondly , when it comes to other cash stocks , focus on
positional trading on weeklyTF , monthlyTF as there are so
many cash stocks

62.  As we spoke , the concept of Price behaviour is actually universal
 No matter what is the timeframe , concepts work across all time
Frame’s
 However concept’s work better on higherTime frames as it
reduces the Noise
 The concept’s of price behaviour such as Consolidation , Breakout
, retracement , build up , works across all time Frames
 For day trading , we just shift our EntryTrigger , Stop loss
placement and Exit trigger on a shorterTF

69.  Well it’s simple
 Firstly you need to understand stop loss is basically a point
where your view has gone wrong as per your trading style
 The purpose of stop loss is to basically to accept that trade
went wrong , and it’s time to exit your trade

72.  Check for stocks opening above / below PDH / PDL range
 Checkout the scanner at 9:45
 Then look for stocks with good structures

73.  What to trade ?
 How to trade ?
 How much to trade ? – Position sizing
 Where to Exit a trade ? ( Stop loss and target)
 How to run your profit’s ? ( take insights from SwingTrading )

74.  As a breakout trader , all you need is momentum.
 Hence we will focus on High beta stocks – Stocks that move
better compared to the index
 Remember , stock selection is same as swing trading only , so
don’t get confused ( If you marked a stock for swing trading ,
the same stock can be traded for day trading as well )
 Now as a day trader , you must start by focusing on a small
watchlist
 A watch of 8 to 10 stocks is good enough

75.  Breakout trading
- Stocks that have given a breakout
- Stocks that are in a range , and now about to give a breakout
Note – “ In the above method , the trade direction is clear “
 REVERSAL’S
- Marking fresh level’s of support and resistance..

76.  Most high beta stocks comes from the financial sector
 Further financial sector contributes 35 percent to Nifty as well
 Going ahead if you want to master bank nifty trading , it
makes sense to do stock trading in stocks like HDFC BANK ,
ICICI BANK , AXIS , KOTAK , SBIN.
 Other high momentum stocks come from Nifty metal , nifty
auto and nifty energy sector..

77.  Simply mark the area which has been tested multiple times
and wait for a breakout breakdown , with nearest swing as the
Stop loss ( Start with daily timeframe , then go to 15 mins for
marking level )
 Or mark the fresh level’s of support / resistance for reversal
trades
 Clearly write your trigger Area in a book ( Levels )

78.  Buy above 600 , with SL as 595
 Sell below 500 , with SL as 505
Note – “This strategy is suitable for all the over thinker’s “

84.  Day trading based on price action is similar to swing trading
concept , nothing new
 We look for a crucial level that has been tested multiple times
 A build - up before the breakout is high probable
 The key to Day trading is to limit your watchlist to a few
stocks for the week ( 8 to 10 stocks are suggested )

85.  When it comes to Exiting a trade , we have to look at two
trigger’s
 Stop loss – “ Nearest retracement ( For day trading , For day
trading , SL should not be more than 1 to 1.5 percent max )
– Similar to Swing trading
 Target – “ Risk to reward / nearest Resistance “
Note – “ Exiting a trade is the most tricky part as it evolves from
trader’s to trader’s “

86.  Download High BetaWatchlist
 PICK 5 to 10 stocks Max
 Mark levels for entry on these 10 stocks using daily and 15
minutesTF ( Minimum 3 touches )
 For entry / SL we use 5 minutesTF

87.  The most critical
 risk to reward ( Fixed Risk to reward of say 1:1 or 1:2)
 Fixed target as pervNearest support and resistance or pivot
points ( beginner friendly )
 Partial profit booking ( Book half at 1:1 and run the remaining
qty )
 Running profit’s

88.  Running the profit’s simple means that you stay in the trade
until unless the price has strong momentum
 The psychology in running profit’s is to capture a big profit
when market moves in your favor
 The advantage to running profit is that your winning trades
are going to big enough to take your losing trades easily
 The con of running profit is that , your hit rate is going to be
less , further not knowing where to exit before entering a
trade is always emotionally difficult

89.  Running the profit’s simple means that you stay in the trade
until unless the price has strong momentum
 The psychology in running profit’s is to capture a big profit
when market moves in your favor
 The advantage to running profit is that your winning trades
are going to big enough to take your losing trades easily
 The con of running profit is that , your hit rate is going to be
less , further not knowing where to exit before entering a
trade is always emotionally difficult

92.  Use of 15 day exponential moving average
1. You’re going to stay in the trade , until unless the price stay’s above /
below the moving average
2. As and when price moves below / above the moving average , you’ll exit
your trade (use of EMA shall be done only after the stock has atleast
give a 1:1 ) “
3. The advantage is that , one fine day you’ll get a windfall gain and you’ll
catch the biggest whale in the town.
 Disadvantage
1. You have to actively watch the market.
2. The M2M swings can really disturb your peace of mind.
3. Not knowing pre defined target is little difficult to handle psychologically

93.  Exit 70 percent at 1:1 , and run the remaining ones
 Exit the remaining as per your preferable exit strategy ( 15
EMA )
 Focus on Equity trading , don’t do FNO as a beginner.