12159 Consolidation breakout
Trade Thesis
1. Technical Analysis
a) Consolidation breakout and pull back set up.
b) entry valid only, if 5 min candle closes above 1082.
c) Triangle breakout possible
d) vwap breakout pull back zone
e) high volume spike zone
f) SL compulsory
2. Risk Analysis and management
a) Personal risk tolerance level (PRL): Identify the personal comfortable risk based on dollar amount of total capital or on unemotional induction point.
b) The PRL should not exceed 5% per trade even in high convention stock.
c) Allow diversification across different asset to minimize the risk.
d) Define the optimal position sizing per stock and commonly used 1-2% risk on total capital.
d) Assess the trade viability during trade life cycle, such as overall stock specific news, market conditions, sectorial assessment or any major global scenarios.
e) Always use stop loss in place (SL).
3. Fundamental Analysis
a) OPM% above 14
b) Consistent profit earning organization, but exits variability in qtly results
c) Sales numbers increased you
d) slowly increasing reserves
e) positive cash flow
f) Significant FII and DII holdings
4. Trading mindset requirements
a) You cannot be wrong all the time, if we follow same set of trading rules to same stock or similar group of stocks - all the time.
b) Focus on process and not on outcome - all the time.
c) Engage and deploy 1% risk and maintain 1:2 risk reward ratio all the time.
d) When we skip celebration on success, we cheapen our efforts and fail to positively reinforce our work. We miss the opportunity to strengthen our identity.
e) positive attitude won’t always guarantee a great performance,
but a negative attitude always hurts performance. Hence be positive.
1. Technical Analysis
a) Consolidation breakout and pull back set up.
b) entry valid only, if 5 min candle closes above 1082.
c) Triangle breakout possible
d) vwap breakout pull back zone
e) high volume spike zone
f) SL compulsory
2. Risk Analysis and management
a) Personal risk tolerance level (PRL): Identify the personal comfortable risk based on dollar amount of total capital or on unemotional induction point.
b) The PRL should not exceed 5% per trade even in high convention stock.
c) Allow diversification across different asset to minimize the risk.
d) Define the optimal position sizing per stock and commonly used 1-2% risk on total capital.
d) Assess the trade viability during trade life cycle, such as overall stock specific news, market conditions, sectorial assessment or any major global scenarios.
e) Always use stop loss in place (SL).
3. Fundamental Analysis
a) OPM% above 14
b) Consistent profit earning organization, but exits variability in qtly results
c) Sales numbers increased you
d) slowly increasing reserves
e) positive cash flow
f) Significant FII and DII holdings
4. Trading mindset requirements
a) You cannot be wrong all the time, if we follow same set of trading rules to same stock or similar group of stocks - all the time.
b) Focus on process and not on outcome - all the time.
c) Engage and deploy 1% risk and maintain 1:2 risk reward ratio all the time.
d) When we skip celebration on success, we cheapen our efforts and fail to positively reinforce our work. We miss the opportunity to strengthen our identity.
e) positive attitude won’t always guarantee a great performance,
but a negative attitude always hurts performance. Hence be positive.
Trade active
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