How does a 22-year-old Techie makes Trading Profits? #Face2FaceEmerge
Hello I am Vivek Bajaj, founder of stockedge and elearnmarkets We are back with a new episode of emerge and we have with us a young star who is a millennial. He is in the market and he is doing fine so how are you all doing in the market? There is a lot of volatility these days, so if you are able to save the money you earned these 2 years then I think you are a winner you need to be patient because the volatility can eat you up. But we will talk positive and as you know my motive is to teach people and make them aware regarding stock market with a strategy you people must have heard about Robinhood? they are really popular in the US and they are young people who are helping others in the market generally, it is said that they are soldiers who are working together in the market, I don't think it has any equivalent in India because traders here are sensible especially they are the young people, so I bring you a young boy who is a millennial, is approximately 21-22 years of age. He has his job but he has agreed that he will teach us his trading strategy We won't be able to see him but his name is Arpit Goyal. Also, we do not have many details about him but he will tell us how he participates in the market. He is young, really sweet, and cute.
Hello Arpit, how are you doing? Yes, I am doing good. All great! I am not sure if your name is actually Arpit, and I don't want to know. But give a small description of yourself and then we can head towards your strategy so I am from an IT background, I am a software engineer by profession. I started learning about the stock market in 2nd year as I was doing really well in my studies in the first year. Also, my relative who was in the stock market for 30-40 years told me about his Infosys IPO days
he told me about how he applied and process. Blue-chip trading, large-cap trading, and where should we apply or not so like everyone I wanted to make easy money so I started with Intraday trading. I was in college so I was short in cash, and I took 15-20,000 from home and invested initially, I had a loss, so I knew it will not stay for long. So I took small quantities, like 5 units or so so we saw no changes in 1-1.5 years. 20,000 was not even 25,000 at this time. So I thought something is not right. I started joining telegram groups, watching youtube videos, and saw that people were making money
so I started with positional trading, my marks were getting affected because all of it took too much time. So I started with this I noticed that people post chart patterns, but most of them don't understand. So I saw this page on Twitter that posts charts and patterns he posts charts patterns only, inverted and rectangle, which will also be a topic of discussion for today after the research, I came to know that everyone is following this and it is also easy to backtest. 10-20 years of backtesting can be done in 1-2 minutes from there only my journey with chart patterns started and then it became my strategy So as you all know we will talk about charts and patterns today. It will be really interesting if you will watch till the end. Also if you are new to this video then please subscribe to our channel then only you will be able to see new content let me tell you that a lot of effort goes behind face2face. Making people like Arpit come on board, talking to them, and taking things forward is too much. So if you will not share this then our hard work will go in vain
please share so that even Arpit's message goes to people. So share your screen Arpit, so that we can start with the conceptual discussion we will start with the basics of chart patterns, so the first topic will be why do we do chart patterns so if we try to know why is this used then we will come to know that traders have been using this for 100 years returns generate a good portfolio and dedicate less time to the market the setup trading we are using can be used in nifty, commodities, currency, and then they ask if it can be used in India, you can also use it in trading through Facebook and other means this shows how psychology works. It also shows how demand and supply works, which we will see further this goes for weekly and monthly, sometimes when we lose 3-4 trades, our morale goes down you will realize that getting trades is also a good sign, you need to hold these trades if you get 5-6 trades then I don't even need to shuffle so much if I use my medium strategy we will talk about inverted head and shoulder patterns, there are two types, reversal, and continuation so you don't need to understand, where are both of these being used. You can use them anywhere you want
the time frame we will use is weekly because the backtesting will be really easy. We will also use the moving average, which is 200, and that will help in the weekly format this is for people who are fund managers etc if they think it is preferable for this when it comes on top then the big money is activated, so this is the paddle structure that you need to spot when you open a weekly chart, then you can discuss this further the candle should be more than the breakout, so it will be easier to work on so closing has to be in 2% for example, then it will be 200 if you see the alignment then it is bookish because the left and right shoulders are all aligned when you see different charts and patterns then you learn but you can't think that this is not how it is done so this will take a high, the stocks in 52 weeks are strong stocks the last point you will have to explain in more detail with some example okay, I will give an example, so we need to know how SL works and target works? after the 365 your screen should be closed, you can set an alert for that you don't need to check the screen it has to be a red candle, not green doji or anything. Our criteria will be 1:3 or length of the aid we will take trail in weekly swing low, this we will do because we will not take any weak stock, we will sell it I will take the trail slowly because the small and large midcap will have a fall of 10-15% that's why the closing is weekly and it will close before 1% so can you see the chart? this chart I posted on my Twitter I have taken 2 here, one in red is 200 and the other is 200 exponential. Is the chart monthly?
these are weekly charts, in the head and shoulders, there is a neckline. You will not get a straight line, you will need a supply chain this is a neckline, which you can also call a supply chain here it's a break-off...and here it will be bullish if you see when you study the market, you will see the change here so when this order will be considered? so will it be needed for the next week? you can put that kind of order here..okay then
now we will talk about stop loss, what is swing loss I will show you this on screen if you follow this trail, you can consider this stop loss then you will be able to the next step is to prioritize the setup, let's say you have 4 setups, which one will you prioritize? I will tell you one, sometimes people are unable to prioritize. So you can take this one and it will give good results the stop loss will be the closing of this candle, which will be 36.80% minus 61% down which is 45 and the SL will be deep. So if you do it like this then it will be easier so the position we make has to be long so that it does not hit the volatility I am discussing it weekly now, we can also do it daily if we have time. This is suitable for people who do not have much time and can only do it once a week like Sunday
what we can do for the target is that we can take a high point minus the low point, which is 26.5 we will calculate this now, this is your target, 18.65 minus the breakout point sometimes the target is too much so people do not have patience, so what we can do this we can book by 1:3 the entry is at 45, and the stop loss was at 36.80
8.6 is where we have taken the loss, yes so 45 it will be 70, so you can choose whatever comes close we got the targets in 2 weeks, which we got 40-60% it is not always like this, it depends on the market conditions our target in this candle is the red candle 65.25. Arpit, I will ask questions in between so please don't mind. In this whole exercise, there is a bar behind the volume. It has any role here? no sir, in weekly there is no role because the volume can come before the breakout or after. what is the core principle of head and shoulders, what is it trying to say? okay, so when I said it is going for 100 years. It means that it is depicting human psychology when a certain pattern is made. It happens when a breakout is there.
it is going for 100-200 years. I understood. It means that something is standing to take the catch. so the volume mark is not considered? Yes in some cases it is because the candle might be short you can prioritize the volume indicator, I'll show it if you have 4 inverted heads and shoulders, but you just have money for 1 then which one will you prioritize? Sure. I will go for this one if you have so many setups which one will you prioritize will be the question. If I have time then I will check the weeklies on Saturday Yes, you can check on Saturday. How many trades I will have to check to get this pattern? You have checked so I understood you can take NIFTY 500, and take 50, 60, 100 and check if there is any pattern in TCS that will come from practice, it has no other alternative. Can you show us some other stocks? Yes next, we will move to HFC, I have used moving averages for that you can also use scanners, you can use the 52-week high scanner. We are doing it for a year so 52-week scanner is good
you can also use it manually, I do the same. But in 50-50 inverse head and shoulders how? I'll tell you you can check the 52-week stock because pattern length is greater than 1 year, so you will get it I like watching it manually, 5000-1000, small-cap, mid-cap in our stockedge, there is a 52-week scan, which can be downloaded and used in excel, just in case yes, you can use it from stockedge also. So where are the inverse head and shoulders? I can draw and show it to you, here is the left shoulder, here is the right shoulder. As I said, you can't get a textbook pattern, it will come with practice is this inverse head and shoulder pattern valid? yes, it is. Some people say the bottoms should be equal but according to my research I don't think so
the gap will be 5-8%, which is beneficial for me. Here there is a supply zone first, it was a supply zone, then a weekly close and the target will be easily closed in a few weeks. If you see it was 35, then it turned 39 you can also go back and check, I have given an example. It's not like it is in the bull market so it will not work, it will work I can also answer that through Twitter so do I show more examples? You have given the examples in the PPT, right? so let's go through the PPT so we talked about IDBI, HFCL, so we will talk about how to trail why do you use investing? why don't you use trading view? I use any of them, I don't need to use indicators so I am fine with anything so here it is also the same, here we draw a left shoulder. Someone will do it from here and someone from the other side what happened here was that we got no target here, no chart patterns or anything. The breakout happened and the stock went up, then we can see if we zoom I can also show swing low, I would like to suggest one video from face2face of Mr. Rishikesh. He has explained it really well
that is one of the best videos of elearnmarkets. You are talking about Rishikesh face2face? Yes, it is a very good video. I will share the link in the description, you all can watch it if you haven't that is the corresponding video that will also explain this well. initially, the trail was here, the cost came down to this in weekly, people say that it closes in the bottom but if you have an SL then it will be 10 in 1 condition that it will close easily this is a point of argument, so the option will be lost or it can have a spike any setup is not bulletproof, so basically you are not a retracement trader, you don't want to work in breakouts? I'll check on Saturday so you have to watch it once a week? so is it for part-time traders as well? This is really good for them you can do it just like that. So you have no tool that can detect head and shoulders? No it is not. Some things should also be left for us humans to do. If everything will be done by machines then what will we do? Yes true. It's funny that being a techie you are saying this
how many case studies will you make? Few can be done because there is a startup culture if they do it then well and good This was posted on Twitter, we trailed here. So let's move to other examples This is club Mahindra. The length was also shown here the stop loss will be deep here as I said. It is weekly and not daily. that was because it was going fast, Arpit. No sir, I can also show you previous examples the trail will not hit, okay so I will show you some old examples so this is also posted on Twitter if someone wants to buy this is also on Twitter, as you can see it is SBFC and others. It will not move so this example is from 2015-2017. You were saying it is a bull market, but you won't be able to see this example even in a bear market
it's not like if we have 10 lacs we will invest all of it. Similarly, you will have fewer breakouts, your stop loss will be less. Suppose, you have generated 50-60% of the year the drawdown will be 10-15%, which we will also talk about reducing. you can take a position, you can trade or invest, you can also do SIP, there are a lot of options so do I start with the next pattern? Yes yes move ahead will you share this PPT? yes yes, I will. So I will share the link below the description so people can download it
so this is a rectangle pattern, the setup and rules are the same. This has a tight consolidation it has the same reversal and continuation pattern, the moving average will be 200 SME and 200 EME we will identify the pattern and see what it is our price should be 200 simple and 200 exponential moving average in weekly and the price closing will be 1% up it's not that you have to do the same, there is a demand and supply that you have to draw, which will come with practice As Mitesh Patel said if you want to earn money you have to work hard. If you are giving hours then at least give one whole day our SL trail will be the same, which we will take in daily swing low, we will trail in weekly on Friday so we will take live example for better clarity, we will not take from this market but from previous we will take live example from TCS, you can do with anything like small cap, mid-cap it should at least touch 2 like 1,2,3 so that it can create a solid resistance it will create a resistance, so this is our supply zone from where we are getting supply yes, these are demands. So the stocks from 2015-2018 are tightly consolidated now all the conditions have been met, we will check the stop loss we will go back a little because we have taken old examples we will take 12% of the daily closing this is our stop loss, so we will mark it here, so we will take a target, you can book 1:3 or you can 14- length and that is 100, so it will be 1800 target you will have to wait, you will have to 6-8 stocks if you want to earn I understood. So previously you were identifying swing low and in this one, you are identifying the pattern the lowest swing low in the rectangle pattern will be taken, so it is the same just the swing low will be taken The chart patterns will be different. We will discuss how the closing is 1% now I will show you a new example. Can you repeat the closing rule?
okay, I understood. The closing should be 1% above the breakout how do we save the vix we will discuss, basically we save ourselves from fake breakout? and what is the 1% logic? I will explain that through my backtested result in yes bank all the criteria are met, moving average is on top of this, it has an all-time high this is making a really good demand and supply zone, below it was making a supply zone it will never close in 393 only, you will see it has started a fall only If you see from 200 you will see the pattern and work, you will see how the market is working if it will be consolidated then I think you will be able to see the reason I think so It will be a bigger pattern, so it will be a stop loss or it will end in a bigger pattern in panic mode, we can trail this and take it upwards here is a small SL, it is 2300- 1% here the breakout level was 2500 we have talked about the breakout level, now we will talk about people who ask that they have invested all the money in one stock now what will they do you will only buy 10 quantity and your deployed quantity will be 10,000 it will be almost 80-90, even now it is 80 in NIFTY, usually, it has a 4-5% fall what you do is you take some stock from weekly and then daily, now you have 1 lac capital but you can't lose more than 5000 at one time first of all, think positive, many people say that whatever we do we have a loss so please think positive. If you have lost in such a nice market then it is your fault people say to keep it simple like super simple, I think your strategy is simple and it works it will benefit you if you watch this strategy, I have seen Arpit, he doesn't even look 22, he is really sweet and he shared his strategy. You can also follow him on twitter for any queries
2021-11-28 02:06
