12157 Breakout pull back set up
Trade Thesis
1. Technical Analysis
a) Breakout pull back set up
b) Breakout from consolidation range of 3 months
c) vwap support
d) Channel support
e) Weekly breakout possible
2. Risk 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 stoploss in place (SL).
3. Fundamental Analysis
a) OPM% above 60
b) Debt-free organization
c) consistently increasing profit earnings.
d) consistently increasing reserves
e) Strong FII and DII and slightly decreasing % recently.
4. Trading mindset requirements
a) Your belief in yourself will improve dramatically, and your ability to perform well becomes automatic and unquestionable.
b)When you perform a task with a positive result, your self-image grows stronger, and when you produce a negative result, your self-image weakens. Hence building self-image is very critical and need to reprogram your self-image in a way that is supportive of building a winner.
c) No matter how much talent or natural ability you have, no matter
how many hours you practice, if you have a poor self-image, you will fail to realize your full potential, because you can only perform up to your self-image.
1. Technical Analysis
a) Breakout pull back set up
b) Breakout from consolidation range of 3 months
c) vwap support
d) Channel support
e) Weekly breakout possible
2. Risk 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 stoploss in place (SL).
3. Fundamental Analysis
a) OPM% above 60
b) Debt-free organization
c) consistently increasing profit earnings.
d) consistently increasing reserves
e) Strong FII and DII and slightly decreasing % recently.
4. Trading mindset requirements
a) Your belief in yourself will improve dramatically, and your ability to perform well becomes automatic and unquestionable.
b)When you perform a task with a positive result, your self-image grows stronger, and when you produce a negative result, your self-image weakens. Hence building self-image is very critical and need to reprogram your self-image in a way that is supportive of building a winner.
c) No matter how much talent or natural ability you have, no matter
how many hours you practice, if you have a poor self-image, you will fail to realize your full potential, because you can only perform up to your self-image.
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