Bulletproof Trading plan that keeps you Disciplined & ProfitableHello Traders! A solid trading plan is the backbone of long-term success in the stock market. Without a well-defined strategy, you're just gambling! Let’s break down how to create a bulletproof trading plan that keeps you disciplined and profitable.
1. DEFINE YOUR TRADING GOALS
Know Your Why – Are you trading for financial freedom, side income, or wealth creation? Define your primary objective before starting.
Set Realistic Expectations – Don’t aim for 100% returns in a month. Instead, set achievable goals based on your risk capacity and market conditions.
Time Commitment – Decide how much time you can dedicate to trading daily. Full-time traders have different goals than part-time traders.
Determine Risk Tolerance – Some traders are comfortable taking bigger risks, while others prefer slow and steady gains. Know what suits you best.
2. CHOOSE YOUR TRADING STYLE
Scalping – Quick in-and-out trades, usually within minutes. Requires a sharp focus and high execution speed.
Intraday Trading – Buying and selling within the same day. Ideal for traders who can monitor charts and execute trades during market hours.
Swing Trading – Holding trades for a few days to weeks. Best for those who want to capitalize on short-term trends without daily monitoring.
Positional Trading – A long-term approach where trades are held for months or years based on fundamental and technical analysis. Perfect for those who prefer low stress and bigger trends.
3. RISK MANAGEMENT IS EVERYTHING!
Position Sizing – Never risk more than 1-2% of your total capital per trade. This ensures you survive even after a losing streak.
Stop-Loss Discipline – Always place stop-loss orders to limit potential losses. Never trade without one!
Risk-Reward Ratio – Aim for a minimum 1:2 risk-reward ratio. This means risking ₹1 to potentially make ₹2, ensuring profitability over time.
Diversification – Avoid putting all your money in one stock or asset. Spread risk across different sectors or instruments.
4. DEVELOP YOUR ENTRY & EXIT STRATEGY
Entry Signals – Use technical indicators like moving averages, RSI, MACD, or price action patterns to confirm trade entries.
Predefined Exits – Set both stop-loss and take-profit targets before entering a trade. This removes emotions from decision-making.
Trend Confirmation – Don’t jump in randomly! Look for strong confirmation signs like higher highs & higher lows in uptrends, or lower highs & lower lows in downtrends.
Avoid Chasing – If you miss an entry, don’t jump in late. Wait for the next opportunity instead of chasing the price.
5. KEEP A TRADING JOURNAL
Record Every Trade – Note down entry price, exit price, stop-loss, profit/loss, and the reason for taking the trade.
Analyze Mistakes – Review losing trades to identify common errors, such as emotional trading or ignoring stop-losses.
Track Your Performance – Monitor win/loss ratios, average risk-reward ratios, and overall consistency.
Continuous Improvement – A journal helps refine your strategy over time, making you a better trader.
6. CONTROL YOUR EMOTIONS
Fear & Greed Control – Never let emotions dictate your trades. Follow your plan, not your feelings.
Avoid Revenge Trading – If you hit a loss, don’t immediately jump back in to "recover." This often leads to bigger losses.
Stay Disciplined – The best traders follow strict rules and don’t deviate based on market noise.
Take Breaks – If you’re feeling frustrated, step away from the charts. A clear mind leads to better decisions.
Final Tip: A trading plan is only as good as your discipline to follow it. Stick to your strategy, and let consistency bring you profits!
Do you have a trading plan in place? Let me know in the comments! 👇
Swingtrading
Stop-Loss vs. Hedging: Which Protects Your Capital Better?Hello Traders!
Today, let’s dive into the debate of Stop-Loss vs. Hedging . Both strategies are used to protect capital, but they serve different purposes and suit different types of traders. Let’s explore which one is better for your trading style.
Stop-Loss: Cutting Losses Early
A Stop-Loss is a predefined order that automatically exits a trade when the price reaches a certain level, helping traders limit losses. Here’s why it’s useful:
Automatic Risk Management : Helps avoid emotional decision-making by exiting losing trades automatically.
Best for Short-Term Traders : Ideal for intraday and swing traders who need quick risk control.
Simple and Easy to Implement : No complex strategy needed, just setting a stop-loss order.
Hedging: A Strategic Protection
Hedging is a technique where traders take offsetting positions to minimize risk while staying invested. Here’s why it’s powerful:
Reduces Market Volatility Impact : Helps smooth out losses by using options, futures, or inverse ETFs.
Best for Long-Term Investors : Suitable for portfolio managers and options traders looking to hedge risks.
Protects Without Exiting : Unlike a stop-loss, hedging allows you to stay in a position while minimizing potential losses.
Striking the Balance: Stop-Loss + Hedging
The best traders often use a combination of both. Here’s how to balance these strategies effectively:
Use Stop-Loss for short-term trades where capital protection is crucial.
Apply Hedging for long-term holdings to mitigate risk without selling assets.
Diversify strategies to manage different types of market risks efficiently.
Conclusion: Choose What Fits Your Strategy
If you are a short-term trader , a Stop-Loss will help you control losses efficiently. If you are a long-term investor , Hedging provides better protection while keeping your investments intact.
What’s your preference – Stop-Loss or Hedging? Let’s discuss in the comments below!
Scalping vs. Swing Trading: Which One is Better for You?Hello Traders!
Today’s topic is one that often sparks debate in the trading community: Scalping vs. Swing Trading. Both strategies have their unique strengths and challenges, and the choice between them largely depends on your trading style, time availability, and risk tolerance. Let’s break down the key differences to help you decide which approach may be better suited for you!
Scalping: The Fast-Paced Trading Strategy
Scalping is a trading strategy that focuses on making small profits from small price movements throughout the day. Traders who engage in scalping, also known as scalpers , typically execute multiple trades in a short period, often holding positions for just a few minutes or even seconds.
Key Characteristics of Scalping:
Short Holding Period: Scalpers hold positions for seconds to minutes, looking to capitalize on small price fluctuations.
High Frequency of Trades: A scalper executes many trades in a day, potentially dozens or hundreds, depending on market conditions.
Low Profit per Trade: While scalping, the profit per trade is small, but the cumulative returns can be substantial if executed consistently.
Requires Fast Decision-Making: Scalpers need to make quick decisions, as they operate in fast-moving markets.
Low Time Commitment per Trade: The time spent on each individual trade is short, but scalping requires constant attention to the markets throughout the trading session.
Swing Trading: The Mid-Term Strategy
Swing trading involves holding positions for a few days to weeks to capture larger price movements. Swing traders aim to take advantage of market “swings” or trends, rather than focusing on small fluctuations like scalpers.
Key Characteristics of Swing Trading:
Medium Holding Period: Positions are typically held for a few days or weeks to capitalize on medium-term price swings.
Fewer Trades per Day: Swing traders typically make fewer trades compared to scalpers, often only executing trades a few times per week.
Larger Profit per Trade: While the profit per trade is larger, swing traders can also face greater risk as positions are held for longer periods.
Trend-Following Approach: Swing traders often look to trade in the direction of the prevailing trend, using technical indicators to identify potential entries and exits.
More Time Between Trades: Swing traders don’t need to monitor the markets constantly like scalpers; they can afford to check their positions less frequently.
Which One is Better?
There is no clear-cut answer to which strategy is better—it depends on your personal preferences, lifestyle, and risk tolerance. Let’s compare them:
Scalping
Best for Active Traders: If you enjoy being constantly engaged with the market and have the time to dedicate to making quick decisions, scalping might be ideal for you .
Requires Quick Reflexes and a High Level of Focus: Scalping can be intense, as you need to react quickly to price movements.
Lower Risk per Trade, But High Frequency of Trades: While the risk per trade is small, the frequent trades can accumulate fees or slippage that impact overall profitability.
Swing Trading
Best for Less Active Traders: Swing trading is ideal if you don’t have time for constant monitoring but still want to take advantage of market movements.
Better for Those Who Can Handle Larger Price Moves: Swing traders need to be more patient and prepared for larger price swings.
More Time Between Trades, More Time for Analysis: Swing traders can dedicate more time to research and analysis before entering positions.
Conclusion:
Ultimately, scalping and swing trading are two effective strategies with their own strengths and weaknesses. Scalping suits fast-paced traders who thrive on constant action, while swing trading is better for those looking for a more relaxed, mid-term approach . Your choice should depend on your trading personality, time commitment, and comfort with risk.
What’s your preferred strategy? Scalping or Swing Trading?
Let me know your thoughts in the comments below! Happy trading!
How to Journal as a Trader or Investor on Trading View ? Summary of this video
There could be Two types of people Journaling, one who is daily journaling and one who is weekly journaling; both will do the job.
You can make two notebooks for the same: Feelings-based Journal and Stats-based Journaling.
Both serve different purposes.
A feeling-based journal helps you to create a daily habit of writing some compulsory things like pre-market, vix, post-market, and setups, and ask why in terms of positions - if taken and if not taken, whereas to get into the habit of writing a feelings based journal also dig deep into some really important terms like cpi inflation, ppi of some significant economies which effects your markets. These things won't affect your trading, but such add-ons help you give a direction to your journaling power.
A Stats-based journal contains different columns, as told in the video; feel free to add more of your favorite ones and change them as you wish, but every single trade should be respected in such a manner. Journal every single trade like this in terms of numbers. Remars is very important in this journal as it will guide your Fear and Greed.
In conclusion, Finally, if you can do this for at least one month, you will see good results, but what exactly do you have to see?
After one month, read your first-day feeling journal and the first two or three trade remarks. You will be amazed to see how silly mistakes you made in the past or how efficient you were back then and now you are making those mistakes; either will help you grow in mindset and profitability. It enables you to become a better trader by 1% daily.
Feel free to put more ideas and thoughts below in the comment section. Good luck journaling
IEX - entering Stage-2 after long accumulation- trade/investmentThe analysis is done on Weekly TF.
The purpose of sharing this analysis is to make viewers understand the stage concept
Legendary Trader - Stan Weinstein has introduced this concept of Stage analysis of a stock.
A stock goes through 4 stages in its lifetime and the cycle repeats.
The stock has been in accumulation phase for past 2 years almost and now seems to be coming out of its stage-1 and entering into Stage-2
A stock moves fastest in its stage-2 and hence a stock entering stage-2 should always be on our radar for opportunities if we want to make good money.
This concept of Stage analysis has been used by many traders/investors like Mark Minervini and others.
The above analysis is purely for educational purpose. Traders must do their own study & follow risk management before entering into any trade
Checkout my other ideas to understand how one can earn from stock markets with simple trade setups. Feel Free to comment below this or connect with me for any query or suggestion regarding this stock or Price Action Analysis.
BPCL LONG TRADEThis is my today's (13-06-24) trade on #BPCL .
Booked 1:1
Stock was on strong uptrend,Entry based on Pullback at good Demand zone with confluence of proper signals moving averages and volume.
Overall Market was in sideways today so stock was not giving strong movements.
Then booked 1:1 &close.
Im hoping 1:2 hits tomorrow
What do you think of this swing trading approach?Hi TV community.
This view is based on my own approach to swing trading.
METHOD
Select 60 PSU stocks
Trade only on the Weekly Timeframe
Exit trade when price hits 6.8% over entry price. (The 6.8% corresponds to one year FD interest rate of SBI)
There is no concept of stop loss with this approach as we give 52 weeks time for the stock to hit TP level of 6.8%. In most cases, TP level will be hit well within that period.
OPPORTUNITIES
After taking out all trading holidays there are 50 weeks of opportunities every year. So, with 60 stocks you will have hundreds of opportunities in 50 weeks.
I have personally experienced that this presents ample opportunities for regular trades. Since I trade only on PSUs, even if price slips for a couple of months, then also there is no stress because I know I will get dividend while waiting for price to hit my target price.
RULES THAT I FOLLOW
My capital is always 1,00,000 per trade.
Profit target is always 6.8%.
ADVANTAGES
This approach ensures that trading is very organised and systematic as the universe of stocks consists of fundamentally strong ones. As trading is on weekly time-frame, it helps in relaxed trading. Trading rules ensure that reward and waiting period are known in advance - so expectations are always grounded. Because the trades are only on PSUs, bigger capital can be deployed per trade with confidence. This discipline ensures that trading is approached with a business-like mindset.
So, as an ex-Banker, I always approach every trade with safety in mind and found that only trading PSUs as per the approach outlined above has helped me be profitable in the stock market.
Hope this idea makes sense and appeals to some of you.
All the best with your trading.
'SWING' your losses into profits with 'SWING' trading strategiesIn prior posts, we have covered some great teachings about the market and,
in this post, we will elaborately cover the swing trading strategies. Let's start !!
->Definition of swing trading -: Swing trading is generally referred to as a trade carried out for a short time. Swing traders do not wait
till the price action opposes their direction, they are known for their prior moves.
They are good at identifying the shifts in market trends with the help of various techniques which are explained throughout this idea.
Swing trading strategies include the use of Fibonacci, Bollinger Bands, Channel Trading, Moving Average, MACD crossover, and better
understanding of chart patterns like Head & Shoulder, Flag, and Triangle Patterns.
We will discuss chart patterns, later on, now let's focus on the indicator strategies.
- >Swing trading strategies -:
->Fibonacci Retracement: The stock price tends to retrace, and swing traders use this retracement as an opportunity to enter a trend.
The retracement levels could be identified using Fibonacci Retracement, all you need is to identify the prior trend and if the price retraces to the 0.618 level and
again resumes the trend jump on it and ride the position till it reaches 0.236 level.
->Bollinger Bands : Most probably, the stock price tries to move in the Bollinger band, which is used by swing traders to initiate and terminate their position.
Firstly you need to identify the major trend, let's suppose it's bearish than when the price reaches the upper bound and there is a formation of a bearish candle
you could initiate a short position also when a bearish candle is formed at the median, there also you can initiate a short position.
->Channel Trading: Sometimes, stock price trades in a channel now this channel is used by swing traders i.e. when the trend is bullish they try to take long
position at the lower range of channel and book partial profits on median and wait for the price to reach the upper end.
->Moving Average: Here traders identify the major trend and take position according to it, with help of crossovers they generally prefer 10DEMA crosses 20DEMA.
->MACD : This is a simple strategy where the trades are initiated when there is MACD crossover but the cross should correlate with the trend.
My Observation-: These strategies could be more accurate if used to trade with the trend, i.e. if the stock is in an uptrend only take positions for a positive signal and just avoid negative signals.
Another basic strategy is to take a position when a script moves above the swing high or below the swing low, here the only thing to ponder is to manage your risk. Don't take over positions understand your risk appetite then take positions.
Trading Style verses Trading TimeframeHi all 👋
We all know about three types of trading styles -- investment, swing trading and day trading.
Yet most traders remain confused when it comes to trading timeframes. Through this post I just want to eliminate this confusion once and for all.
Let us understand some basics....
✅ Anchor Chart
This is the chart used to determine the trend of the market. It conveys a trader whether the market is in uptrend, downtrend or sideways. It sets a bias for the trader. It also conveys us the information about the major support and resistance levels. These levels may provide excellent trading opportunities in future.
✅ Trading Chart
Now that we know the trend through the Anchor chart, we have to take our trading decisions. Anchor chart is too big to take trading decisions. Reason being your stop loss would be too wide if you trade on the basis of Anchor chart, so we have to shift to a lower timeframe. This time frame is usually 4-5 times lower than the Anchor chart time frame. This lower time frame helps a trader to pinpoint his entries and decide upon his stop-loss to avoid unacceptable losses. Also minor support and resistance levels are more clear on this chart.
✅It is your trading style which determines your trading timeframe. For more clarity, refer the chart above.
⏰ Bro tip
🚩Anchor chart helps you to trade in the direction of trend.
🚩When the trend is up on the anchor chart we should look for only buy set-ups on the trading time frame.
🚩When trend is down on anchor chart, we should look for only selling opportunities on trading time frame.
🚩When trend is side ways, buy at the support and sell at the resistance.
Hope this post will be useful for some traders and to the very least reduce the confusion regarding timeframes.
Thanks for reading
@Bravetotrade
'SWING' your profits with 'SWING' trading strategies !!! In a series of educational posts we have covered so far the candlestick patterns and moving average crossovers,
in this post we will elaborately cover the swing trading strategies. Let's start !!
->Definition of swing trading - : Swing trading is generally referred to a trade which is carried out for a short duration of time. Swing traders do not wait
till the price action opposes there direction, they are known for there prior moves.
They are good in identifying the shifts in market trend with the help of various techniques which is explained throughout this idea.
Swing trading strategies include use of Fibonacci, Bollinger Bands, Channel Trading, Moving Average, MACD crossover and better
understanding of chart patterns like Head & Shoulder, Flag, Triangle Patterns.
All the above said patterns has been covered in the previous ideas on continuation patterns.
->Swing trading strategies -:
->Fibonacci Retracement: Stock price has an tendency to retrace, and swing traders uses this retracement as an opportunity to enter in a trend.
The retracement levels could be identified using Fibonacci Retracement, all you need is to identify the prior trend and if price retraces till 0.618 level and
again resumes the trend jump on it and ride the position till it reaches 0.236 level.
->Bollinger Bands : Most probably, stock price tries to move in Bollinger band, which is used by swing trader to initiate and terminate there position.
Firstly you need to identify the major trend, let suppose it's bearish then when the price reaches the upper bound and there is a formation of bearish candle
you could initiate a short position also when a bearish candle is formed at median, there also you can initiate a short position.
->Channel Trading: Sometimes, stock price trades in channel now this channel is used by swing traders i.e. when the trend is bullish they try to take long
position at lower range of channel and book partial profits on median and wait for price to reach upper end.
->Moving Average: Here traders identify the major trend and take position according to it, with help of crossovers they generally prefer 10DEMA crosses 20DEMA.
->MACD: This is a simple strategy where the trades are initiated when there is MACD crossover but the cross should corelate the trend.
My Observation-: These strategies could be more accurate if used to trade with trend, i.e. if the stock is in uptrend only take positions for positive signal and just avoid
negative signals.
Another, basic strategy is to take position when a script moves above swing high or below swing low, here the only thing to ponder is to manage your risk. Don't take over position understand your risk appetite then take positions.
HOW TO RIDE HUGE RALLIES & MOMENTUM! Hello Traders!
This is a learning analysis for 'How we can capture momentum & ride huge rallies in stocks.'
I've taken the example of HFCL. As per the chart you can the current bullish candle closes above the green line (6ma). Whenever this happens near any support of demand zone or any moving averages stocks become bullish.
In this stock it is bouncing back from the 50 ma net(red - blue - red lines).
For SL we can keep it below the low of the current weekly candle.
Entry can be taken @cmp.
The 1st target considered is exactly 1:3 RR. Further move is expected in this trade. So SL can be trailed as per price action. How? If any weekly candle closed below the 6ma, SL will be exactly triggerd and we should exit there or should book partially.
For instance see the same chart during May-July. You'll see how it worked.
SSL Channel and Hama Candles Setup for Swing/Intraday tradingHi followers,
This is very effective trend following strategy and we take entry only on trend confirmation which increases the profitable trades and also we can trail our SL if needed in this strategy.
I have mentioned the indicators and how to use in the snippet. please go through the example and backtest on your selected stocks in all time frames and confirm if it suits your style of trading.
How to better time your entry and exit in Swing Trading?This charts shows the possible areas where one can look for trading opportunities (through Price Action Strategy) and be profitable from it. Swing Trading is better for beginners in Stock Market and Price Action is one of the ways to approach Stock Market. Through Price Action, one can identify the current market structure (uptrend/downtrend/sideways) and so better trading decisions can be made, which will pave way to better time entry and exit. Drawing trendlines, patterns, support and resistance and reading candlestick patterns are some of the ways in Price Action Trading. A good price volatility of a stock is essential especially from the traders perspective, as traders tend to make profit from the market using its volatility. Another important thing in taking up a trade is choosing the right Time Frame because in terms of volatility many of the stocks would fit into 1 Day time frame, some stocks would fit into 1 hour time frame, 4 hour time frame or 30 mins time frame etc. With all this in consideration, one can be expected to make entry in breakouts and shorting in breakdown. One should manually go through as much charts as possible and add to their watchlist that fits into their strategy. This roadmap is one of many ways to approach trading in Stock Market. This is just for Educational purpose. Thank You
[Educational] Building Your Weekly Price Action WatchlistThis post helps you to understand how you can project any pattern formation in earlier stage. Also, It helps you to build your perfect weekly watchlist.
Create Your Price Action Weekly Watchlist in Following Sections:
1) Early Stage Price Action(Waiting Phase)
2) Mid-Stage Price Action(Reversal Entry Phase)
3) Final Price Action(Breakout/Breakdown Entry Phase)
Just spend few hours of your weekend and you don't required any screener to find perfect entry stock. You can build this watchlist according to your trading style.
Timeframe to be consider:
Intraday Positions: 5 Min, 15 Min, 1 Hour
Short Term Positions: 1 Hour, 1 Day, 1 Week
Long Term Positions: 1 Week, 1 Month
How to ride on a swing trade ??? Ex :AMZNHow to ride on a swing trade?
One good strategy in price action is to use 21 EMA and ride on swing trades for short or long terms. 21-day EMA can be called as the Goldilocks of all moving averages. 5,8,13 can be too tight and 50,100,200 are too loose for looking at moving averages, hence 21 EMA can be considered as a powerful average.
In this strategy 21 EMA LOW and 21 EMA HIGH are plotted on the graph forming a channel. Any channel breakout up or down triggers a buy or sell respectively. The bar which detaches with the bar which pierced out of channel can be used as a buy or sell. Please remember this bar should be in the trend up or down respectively to the earlier bar which is piercing out of the channel and not at same levels. In uptrend, high of that second bar can be used to buy and in downtrend, low of the second bar can be used to sell.
Put stop loss of one bar below for uptrend and one bar above for downtrend. Keep trailing as per the risk appetite. We can add during the trend when the candlestick bars touches the channel line and again detaches itself to follow trend, same second bar high should be used as explained earlier for buy or sell respectively.
Keep raiding this trend until the bars touch lower channel in uptrend and upper channel in downtrend respectively. There are many ways to take profit as per your money management. Book profit at 1:2 or 1:3 or 1:4 etc as per the risk. One best way is to put trailing stop loss at high of every bar, it can also be at low but if the size of bar is big and in case of reversal of trend, that bar length of profit would be lost. If the bars are too big then half of the bar can be used for stop loss to average out of profit on reversal. If the bars are far away from channel profits can be booked.
This works very well for 1 hour and above time period. Certain stocks may not fall into this strategy due to way they operate or may very rarely follow the above 21 EMA channel pattern.
Above chart is an example and we tried to put strategy as simple as we can. Exceptions to strategies will always be there, so please back test as much as you can to understand this method.
Hope this helps to gain a bit of knowledge!
Please press like or thumbs up button, if you like this strategy, Thanks
Jubilant Foodworks Trend analysisSharing the chart to provide the insights of jubilant foodworks ltd.
I am always trying to help retail traders.
Things need to consider for trend analysis.
1. Market structure and trend analysis.
2. Entry point
3. Confirmation from indicators for additional support.
Happy trading !!! NSE:JUBLFOOD
ONMOBILE GLOBAL LONG!- Stock to give a bull run
- Stop loss should be tight around 135 range because once the stocks goes below 135 range it has a high probability to go till the demand zone 110.
- If the stock touches the demand zone at 110 can re-enter there.
- Can anticipate a 12% move till 155 range
How to take swing trades - catching the best breakouts!
1. Find stocks which trading in a range. Longer the range - the bigger the move.
2. Wait for price to show strength. Don't jump all in at the breakout. Gradually build positions. Take a small position at breakout and a bigger one at pullback continuation.
MCX breakout retest successful!Resistance line is retested as support as demand has increased. From couple of months it’s been moving in that channel now it’s time for a long.
Entry: above 1600
Target: 2000
SL: 1450
(It’s not an investment advice, do at your own risk)
Key points:
When a resistance is converted as support it means there are more bulls than bears amd demand for that has been. This can be a sign of bullish swing.
We should also look for another signs like candlestick pattern or look what fibonacci says.