My Trading Strategy. Cash Trading Strategy for Swing traders. I used this strategy for swing / momentum trades. Never miss it.
A Megha Thread 🧵
A Megha Thread 🧵
1️⃣ Stock Selection Process - Always choose that stock which are consolidating near All time high. (Because whenever stock will give ATH breakout then it will easily give 20/30% return in 1/2 months.
Use - Trading View/ Chartlink
Ex - NTPC
Use - Trading View/ Chartlink
Ex - NTPC
2️⃣ Volume Analysis - After stocks selection, We should do volume analysis. Volume more normal days . And last 3/4 month volume accumulation is much higher.
Ex - WABAG
Ex - WABAG
3️⃣ Sector Analysis - Sector strength increase your chances of winning. Always choose that sector stocks which are near support or Breakout stage.
You can use Sector Index or stockscreener.in for peer comparison. If out of 5, 3 are strong then you can select that company.
You can use Sector Index or stockscreener.in for peer comparison. If out of 5, 3 are strong then you can select that company.
4️⃣ Entry Setup - Now we add selected stock in our watchlist. Use 5 or 15 min timeframe for entry. When stock give range Breakout in above timeframe, You can enter.
Ex - WABAG
Ex - WABAG
5️⃣ Fund Diversification - Always deploy our capital in 3/4 stock , must be two different sectors.
" Do not put all yout eggs in one basket. " - Warren Buffett
" Do not put all yout eggs in one basket. " - Warren Buffett
6️⃣ Position Sizing - Never make too small or Big position in one stock. Allocate 20% capital in each stock. If you want to more concentrated portfolio, You can allocate 25% in each stock.
7️⃣ Exit Rule - If anyone given Breakout and give 15% return then book 50% now trailing SL is 5% . When stock given 25-30% return exit full.
You will never regret if you follow 50% rule.
You will never regret if you follow 50% rule.
8️⃣ Stop Loss Rule - Don't risk more then 4-5% in your own trade.( You have to Exit at SL anyhow )
9️⃣ Greed Control Rule - Don't touch future and options until you havy more then 20 Lakh and 4 years of trading experience. ( Cash & FnO account different )
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