Trading Strategies की अहम बातें - Stop Loss, Take Profit etc. | #Learn2Trade Session 32
Welcome to the 32nd session of learn to trade I am Vivek Bajaj and I am teaching trading to you and Annapurna It seems like you are already vaccinated. Yes sir, so we're mask free but we will meet in social distancing the 31st session was my best session to you and if you haven't watched it already I have told my best strategy then do watch it if you have joined the session for the first time then we have already recorded 31 sessions where we have covered A to Z of trading And the 32nd session is going to be another interesting session. In in the last session I had already shared my template with you I wanted to give a feedback on it. I added it in my tradingview and as soon as I added, I started seeing the problems in the stock that I had added I was able to trade better and I started identifying more stocks which are more stronger, so thank you so much this feedback is very important and that 31st session is very important. It could only have been thirty first session as had I told you that in the earlier sessions then your base building the first 30 sessions would not have been proper let's revise the 31st session we will not go into details but I will show you your template finally if you are actively investing in the market or actively trading in the market then this should be or template which is also my template this is daily chart, where we have the daily candlestick patterns, moving averages of 21 55 100 and 200, we have added super Trend, then RS, then RSI as per our model if the RS is positive then it is strong, and if the RSI is above 50 then you will keep the stock the day the RS goes beyond zero and the supertrend also goes down then you will square up this is our standard conclusion, but you might say that Rs might become weak after the stock Falls and supertrend might show negative after the stock Falls with better if I am in the know early the best way is to use multi time frame, of mother and daughter, the daily time frame can be of the mother and lets add a daughter, where we add a second chart in the same model. I will remove the bollinger tradingview provides the facility to do this StockEdge does not. I use 2 hourly chart for early entry and early exit
I will track the daily to judge what do I want to do in the stock and if the 2 hourly is the same then I will enter and if the two hourly gives the negative sign which is super trend is negative and RS is below then I will exit the stock you will click here and get the mother and daughter. Daughter in this case will be 2 hourly so I will select 2 hour and I will add the same indicators as I have in the daily chart you need one notch premium version to use this. You synchronise its symbol wise crosshair wise drawing wise interval wise and whenever you select a stock it will show the same stock. We will add the same indicators here the first indicator is relative strength of a stock that is by Bharat trader then relative strength index and then the moving averages there is an indicator of three moving averages in tradingview where they let you plot three moving averages at the same time you can define the value when you change the parameters of 21 55 and 100. We do not need the 200 for 2 hourly chart We will change the setting to 55 and we will remove the reference level. We will change the relative strength to 50 as 50 sufficient if you go below 50 and some other car might just hit you. Let's add supertrend of 10 and 3
as long as the super trend is positive, the stock and RS is above zero in 2-hourly then I will continue with the trade we will enter by tracking the daily chart and entered through the two hourly chart and if the Rs goes below zero and the supertrend becomes negative then I will exit for once But if the RS stock at the end of the day still positive under supertrend is also positive, then I will enter When Everything is positive if you make the Universe of 15 to 20 stocks then you can do active trading and make money similarly let's take an example. I will save this template. Let's pick up your stocks and track In JustDial, as per EOD, positive RS positive supertrend positive RSI is also above 50, so you will trade bullish in the two hourly everything is positive so you can continue the position. You will take the position by tracking the price you will enter when the prices giving a Breakout or when the prices retracing and is near its demand zone and if you want to buy the current price and you can start with small quantity if you feel that you want to invest 10000 in the stock then start with 2000 when the stock Falls then add another two thousand and keep adding money when it comes near the demand zone, subject to Rs is more than 0 in super trend is also positive but if the Super trend becomes negative and RS is positive then you will wait. If supertrend and RS becomes negative then whatever you have then sell it should I not wait for my stop loss to get hit? if you've already set a stop loss and it gets hit then the best way to exit but if you have not set a stop loss and you are using this as a base to trade then when this becomes negative then you will square off your position sir I have another question. We enter the price at 2 X once when it is giving a Breakout and the second when it is retracing Our take profit is 2:1 if you want to take more risk and if we want to take less risk then 1.5:1 is the risk reward ratio
should the risk reward ratio be different when I am trading at a Breakout strategy and when I am trading when the price is retracing? Ideally you get immediate Movement in break out but you need some time for movement if you are trading event the price is retracing you can book a small profit in break out 50% and you can trail the other 50%. You should not be in a hurry to book your profit while it is retracing if you have got the correct zone while retracing when you can keep trailing it. Book 50% when you are trading at breakout and when you are trading while the price is retracing then don't book 50% take the entire trail as there is a higher chance of giving a bigger move. Breakout can come down after it has given a big move so at least if you have book 50%, then the other 50% can be in the cost break even.
Let's understand this in chat let's go to the single dimension chart. This is just dial chart the stock looks positive so we will try to catch it at the demand zone. Demand zone is any price point where there is demand here and if the super trend is also giving support at that point in its bumper. Either I will enter at Breakout price there is a chance of giving a Momentum in break out but there is also a chance that it might be a false Breakout it might go up once and then come down again the best way to protect yourself from this is to trade at Breakout with stop loss and take profit will be 1.5 or two times of your stop loss you book 50% of your profit and trail The Other 50%. Suppose it came down 50% and their stop loss was hit and it is fine your take profit was 1.5 times there is stop loss or at least you covered your transaction cost
when the stock goes down near the demand zone. It gave a breakout here then went up and then came down again this is a demand zone where it took support a lot of times. Typically the stock can reverse from these moving averages if there is a price zone where there is price support, moving average support, supertrend support then there is a very high chance that the stock might reverse from there if the stock is strong if the stock is not strong then it might not reverse. It's important to track it again and see if it is still strong then there are chances that the stock might reverse from the demand zone with supertrend support moving average support put in all your money there and do not be in a hurry to book 50%. There are chances that you might get a rally
like in this case you did get a rally. Keep trailing it. You had set a stop loss and defined your take profit but you can consider your take profit as a trailing stop loss. Keep increasing it and you can use super trend or moving average to set your trailing stop loss mechanism Sir how do we change the trailing stop loss with time? Are you asking me operationally in the software? how do I decide to set the next stop loss? You need to understand the next price zone where demand can be created the price always acts like this and it keeps correcting whenever it that means there is a buyer zone you can see it in the volume that someone has bought it like in this case it fell down and then increased and then fell down again and there was a demand suppose you entered at a previous break out and a stop loss with this then your stop loss gets shift here automatically every time when the stock is giving you a new swing then you can consider the previous swings low as stop loss when it is in the uptrend it will make a higher highs and higher lows. If it continues in the uptrend then the previous low can become a stop loss typically that is what supertrend does. Each time it creates a higher loss then supertrend also shifts up you can consider supertrend stop loss or 21 day moving average stock or55 day moving average as stop loss you can do anything but you need to be consistent with it. Everything works in the stock market but you need to be consistent
it's not like the only thing that works is what I teach. There are many people in the market making money with their own styles and they have their own unique style but none of them will be more accurate than 60 to 65% of the time and they are consistent I had another question. We've learnt that higher highs and higher lows is in uptrend but in some stocks I have seen that the stock is making higher highs but the lows is constant it does not make new lows so it means that it goes up then comes down to a level then it goes up more and then comes down to the same level when we see that kind of a pattern what does it implicate? Do we consider it in uptrend? it means that weak uptrend as not want to buy it as the buyer does not want to buy it at the higher price level they only want to buy it at their own price level according to him the higher price level is expensive so it is not a very good healthy uptrend and not a good stock to participate in this is a very important point that genuine rally in a stock is when there are new investors in the stock the new investors will come at a new price and the new demand so that's why higher highs and higher lows are important then it is a genuine movement if the stock is making higher highs and the low is the same then there is only one buyer who is there it is not genuine and not very interesting. Generally it happens in small stocks and not widely traded stocks if you consider Maruti as example. It was making lower lows and lower highs, but then there was a trend reversal and now it is making higher highs and higher lows so the uptrend has started in the stock and the Rs is also above zero, it is trading above moving averages and supertrend is also positive so I will take a position in Maruti as its trend is positive if we consider the daily basis we will take the position for one month if we are seeing daily basis. Now you're maturing as a market participant
when you started in the day one it was zero and now you've reached 30th session what you want to do in the market so trading do you want to do? Passive Trading. You will take position of 20 to 25 days do weekend study and track the broader trends in the market this is the template that is ready for you. Track the daily chart, make a broader view and if you are scared a lot then time your position as per the 2 hourly chart I have added two portfolios one where I am over it and one where I am not worried when I am too worried and I just check the daily and not 2 hourly where I am convinced that nothing can happen Loke CDSL I only check the daily RS I do not check the 2-hourly RS because if I check the 2 hourly Rs then I will sell the stock once I sell the stock then I will not be able to buy it again. This is the stock for my consistent buying
you need to decide the stocks that are for long term and the short term stock. The techno Funda strategy that had taught to identify the stock so I can only track the daily chart in it I wanted to give the feedback for the same I have added a lot of stocks as techno-funda in my watchlist but I have only taken positions into do I am tracking 10 stocks everyday I see some of the Other stock going up by 10% 15% 17%. There is a lot of activity going on the markets the reason being that the strong stocks are outperforming the market but techno funda is a brilliant strategy and if you haven't watched the learn to trade with you then you are missing it I will give the link in the description so ask your friends to watch it it's very powerful this is your Technofunda and it is like in ATM machine. The stocks in this move up a lot I have book 7% in one week. This was the starting point now you have to work on it the more you work with this the more you will be rewarded the features in this are very impactful so you are absolutely correct the stocks which are techno Funda wise good You to track according to the the daily RS on the stocks where you can see your short momentum you need to enter and exit as per the 2 hourly you can make it small and track hourly. But use the mother-daughter strategy it works very well
I had another question. I saw video where you were talking about leveraging, we have not covered this so I am still not sure what leveraging is and how can I use it as you can see that today we are more into questions and answers. Annapurna is asking questions and I am answering this is more of a doubt clearing session. I had released a video recently where I have answered how to convert 1 lakh to 1 crore I had said that if you wanted to convert 100000 to 10000000 then you need to take the crooked path the crooked path in financial market is to leverage. Leveraging is very important if you have a small capital it is like a sword with pointy edges on both sides. There can be a problem both side but you need to know how to cut it properly leveraging is when you have one lakh capital but if you take just one lakh exposure and generate 5% return monthly then you are just generating 5000 then you will ask me why am I putting in so much effort for 5000. We leverage in 100000 capital and taking an exposure of 500000 and then create 5% Returns
so we can generate 25000 returns in a month so you can generate 25,000 from one lakh as you are generating 5% on 500000 there are different methods to do it you need to identify the right instrument with high leverage I have mentioned in the video that currency has the highest leverage. You can start with currency you can take a large exposure even though the return generation might be small but there are bigger opportunities to generate Returns then there are commodities, equity. Not that you will be comfortable with all the Asset class but I have mentioned all in that video I assume you that you are not going to do currency in commodity even though I want to create detail videos on currency and commodity my Idea is to teach you on each commodity so that if you want to trade in copper then you can do it from the point of equity if we leverage in the cash market then a broker can give you 5 times leveraging at you can take the delivery of 500000. You can do intraday, if you give 1 lakh to the broker then you can do intraday 5 lakh it is allowed if you trade in the morning and you have an open position of 500000. You can buy and sell two to three Lakh intraday it's not a problem
but you need to square it up end of the day. If I want to take delivery of 500000 home then the broker will let you the discount brokers do not let you but the traditional brokers like Kotak let you. They allow you to do it for 4 to 5 days But charge in interest so you can take an exposure of 500000 through 1 lakh. If you generate extra returns on that 5 lakh and if you have to pay in interest to the broker then there's no problem so it's like funding for you. What if I incur a loss? Why will there be your loss if you do Hanuman Chalisa? if you incur a loss then that will be taken f from your capital and if the loss is more than 1 lakh the broker will come to your home to get the money broker charge mark to market so if you're incurring losses then the broker keeps taking money from you we cannot pull the Debit balance for a very long time, show the processes are set and the brokers all very clear they have to bear the losses this is for the cash market. If we talked about derivatives, then everything is allowed in the futures market but the value is so high end it if you are allowed in exposure of 20 to 30% give it to need a lot of capital so future is not desirable specially for youngsters like you. Options provides an opportunity,
especially if you are an option buyer you can take position in a small capital but there are disadvantages to it and if you are a seller of an option then to give the same margin as in futures, do you need to do spread trading where buying one and selling the other. You benefits of margin if you are doing spread trading I will explain the entire concept when I explain options to you. I didn't understand anything just park this thought in your mind because when I teach you, then you will recall if you are trading in the cash market then you can take leverage up to five times if you want more leverage with less capital then you have to start tracking the currency of the commodity market I hope you watched the video, if not then please do it as it covers the concept the thought process was how to convert 1 lakh to 1 crore But the rational behind it is unless you leverage yourself you will not be able to convert what are the questions do you have? I'm done. I've already set up a model for you. We will jump to options from here
I haven't covered some topics like typical chart patterns, candlestick patterns, double top double bottom there are Head and Shoulder patterns. You can Google and find enough content and I don't track it a lot I have taught what I practice. We will continue our journey with options trading from next class this was a quick recap and some question and answers that Annapurna had.
I thought let's keep a lighter session and dedicate the session to questions. I hope you liked it from the next session we will start options where I will explain options from a layman's perspective I will try to explain the advantages disadvantages Strategies and all other things so that if you want to trade in options or you are already in two options then you can probably trade better through my knowledge till then keep sharing my work and keep loving me like you're already doing thank you so much for being associated with us. Bye
2021-07-18 22:42
