Stock Trading

I have been trading the stocks for quite some time now with the price action techniques and I find it more rewarding than Index trading. The only reason for that is that stocks tend to move more, 5%, 10% or even 20% in a day.  With Nifty or Bank Nifty it is not possible at all.  For the Index, 2% kind of move is the biggest move for most of the time.

There are only four possibilities when we enter into the trade.  1) Big profit.  2) Big loss.  3) Small profit.  4) Small loss.  Now what we try to do is we try to avoid the Big loss in trading.  If we are able to do that, we will only have either big profit or small profit or small loss.  Small profits will take care of small losses and we will be left with only big profit.

I just kept this basic law of trading in mind and designed the momentum catching stock trading strategy for intraday.  This strategy will basically try to capture the morning big move that stocks make.

Click here to learn more on how I start my day for stock trading.

Now let me discuss this strategy in some detail for your understanding of it.

Basic method to capture short term momentum:
1) Find stocks which break out of some sort of good consolidation in the morning.
2) Find stocks which show good signs of reversal in the morning.

Stocks to screen:
F&O group of stocks, around 50 highly liquid stock futures.

I have my way of screening these 50 stocks and finding 2 to 3 stocks out of them to trade.  There is no AFL or ready-made screener.  I depend all on my eyes and mind and my price reading skills.

Capital requirement:
It is possible to trade in stock futures with Bracket Order or Cover Order facility with even Rs. 20000 capital.

Risk management:
Risk per trade is never more than Rs. 2000 to Rs. 2500.  Profits are Rs. 3000 to Rs. 6000 per trade.  

Trading time:
From 9:15 am to 11 am only, less than 2 hours of trading.  No need to trade for whole day. It is possible to capture 1% to 2% of moves in this short period.  If someone has a luxury of time and want to trade for the whole day, can keep the small quantity of winning trade till the end of day and try to capture the whole day's move.

Who can trade:
Anyone who is ready for price action based short term trading.  It is suitable for the working professionals, college students, shop owners, businessmen, housewives, retired persons, part time or full time traders who can only spare couple of hours in morning,

Performance report with real proof:
Click here for the performance report with the proof.

Read more on,
How you can become a Champion Trader

If you are interested in learning how to trade the stocks or you just want to copy my trades or want to do both, Click here to fill up this form and I will get back to you with all the details.


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