Trade Using Price Action Strategies On Multiple Time Frames Without Using Any Indicators Or Overlays

Trade Using Price Action Strategies On Multiple Time Frames Without Using Any Indicators Or Overlays

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Welcome. Back to online training summit in, this upcoming video we have akash k Hinduja, participating. In a one-to-one interview, with me as I, quizzed him on his trading journey Akash. Is a full-time, trader managing, his proprietary, trading from the, profitable, Indian in Mumbai and also serves as a partner, calm tech market technician and s2 field in, this interview Akasha, in details, why he prefers, a visual, price action trading, strategy, we, went on to talk about his intraday. And stream trading strategy and the daily workflow he, goes through to implement, his execution, enough. Said let's head in and take a look at what Akash has got to share with us. Hey. Akash good, day to you how are you feeling today man. All. Perfect, infinite power you great. Great great Anna we are so honored to have you on but. This online, trading, summit, to, share with the semi participants, as well as myself your, trading experience and, the vast knowledge that, that you have over the years of trading, but. Before we actually start, today's. Interview. With you may. Be I think it will be really interesting if you can share, with me and the participants, a bit, about your background because I saw, from your profile, that you actually started. To know about training from a very young age and your, family has been like in the financial markets for a long time as well so maybe you can just share with us right from the very start how were you actually exposed. To trading, and stuff and how, it evolved for you thereafter. Basically. It started, off at a very young age like my personal, family my. Parents, are not into stock trading since an early age they, entered up quite late but my my, uncle, is into the stock, market since, the past 25 years so, since I was like 13 14 year old I used to track tickers. On news channels, etc now, that, was say, early 2007. 2008, that's where the whole. Financial. Market bubble thing had appeared. Globally. So. At that age I started tracking it and it, got into a fan, that even I want to go, there so I pursued, my studies, accordingly. I took. Commerce. Background, which you have in you have three streams in India yeah, so I pursued. My commerce background, and then I went on ahead with the stock market studies itself I did, my postgraduate, as well as in, economics, and then the stock market yeah. I see, so from. My experience, when, we were in colleges. And even, under graduates I personally. Realized that the school doesn't really teach much, about things like trading, and technical analysis they, teach a lot of things about fundamentals. Very investing, as such so, in. Your school in your college do you actually learn about all these tech trading, technique. Strategies, and such or do you actually learn it yourself, what. You just said that we actually realize, only after we complete our schooling we, don't realize that when we here entering, schooling, that the, actual real world trading, is way too different than what they teach in school yeah. So, when, I completed, my graduation.

Then I realised that you need to educate yourself more, about trading and its perspective, so, I went on with higher studies in that I was introduced to technical, analysis, before that I just knew what was the stock market and trading, happens value, investing, happens based, on technicals and fundamentals, I was, introduced, to technical analysis and charts in my postgraduate, studies, so, I completed that and, then. I pursued along with that master's. Degree in economics as, well just, to get. To know the flow of it. Because. I am not. Very comfortable, with economics. I mean fundamentals. But. I wanted to learn economics because you, know you. Have to get the knack of it in, the country and in the economy you are staying in globally. What is happening as to so, as to, fine-tune. Your technicals. More that's, what I believe I am, not sure many of us would, have been agreeing, with it or not agreeing with it but, if you can. Place your. Situation. On your charts your global situation or, your economic, situation of, a, company or of the, whole country itself, I think. That's an edge I see. And at what age do you actually start trading. Real money and and how was the experience like I. Started. Trading real money with a very small capital, at the age of eighteen, I was, like. Glued to stock markets and. Like. Observing. It since the age of fourteen but. The, real big money came only after I was 23, 24, so. The first initial four five yrs it was a very small capital I see. And and how was the experience in that during that four five years do you were, you like profitable, right from the start or were, there some very, bad mistakes, that you make during that learning. Phase as you become a proficient and profitable trader I was. Not at all profitable, in the early, ages okay. So. Generally. I had borrowed some capital from my father and then I used to repeatedly reinvest. My pocket. Money and I still lose because, we. Have been on the learning curve from. The. Same learning cover every, retail investor, starts, with we.

All Try, to do try to bottom. Fish stocks, we try to, pick. Up stocks which are falling in our early days okay. And not what, when, stocks are rising we, all try to do so, options, because, we, think that okay in a small bit of money I can make a lot, of money but ideally, options, are hedging tools, according. To me in in my todays life as well I do not trade options I trade only stock cash and stock futures I do. Not trade options early, is the, major mistake. Or major chunk of money I lost was an options option. Trading okay. As well as trying, to buy, stocks. Below 100 rupees like in India, like. Two dollars for the global, economy trying to buy stocks which are below two dollars trying, to buy stocks which are consistently, falling trying, to buy stocks which. Are near 52-week low instead. Of buying stocks, which are at, 52-week, high now. This is a reason what I have learned through my journey right, now is that in a, lot. Of retail investors make, this mistake of, buying 52-week, lows, instead, of buying 52-week, highs, we. Need to understand, that if a stock is at 52-week low and, if. We trust the price technical, analysis, and making, money in the market is all about trusting, the price trusting, the market rather, than trying. To develop a gut feeling of your own self that okay I think this may be right no if the market thinks that is right and go with the flow yeah. So if the market is telling you that a stock is that 52-week low there is a reason behind it, let's, try, to obey that reason, and not, by a falling, knife rather, than, hang. It another, mistake what I used to do when I started derivative. Trading initially. Was. That see, in India you are not allowed to star short, cash stocks they're, out of the 5000 listed stocks we have on an ASEAN BSE combined we. Are allowed to trade only on 210. Stocks which are in the derivative, segment, to. Go short where they will it be via options, or it will be wire futures so what early. Mistakes I used to do another was that, because. It does increase too much let's, go and short it it cannot increase too much now, that's the lesson now. That's a lesson you learn hard way yeah. That it has increased too much because there is something behind it maybe, there is an expectation of. Some. News by market participants, maybe, the earnings are going to be good that is why people are betting in favor of it right. So you should not. Bet. Against, it so, there there comes a code. That you should not buy falling, knives and you, should not stop roaring skies if. The stock, is roaring, at 52-week high or at multi-year, high or probably, at lifetime, high you, should not go and try to stop, that roar. That. Okay I think it may not go ahead. More than this you should, go in short stocks only which are falling in, expectation. That it will fall more and buy, stocks which are already rising in, expectation, that it may go and rise more I see. And, how. Long will you actually trap in this phase, of destruction. So do you like lose your entire capital and how long do you think before you realize that you were doing this all is wrongly, I. Lost. My entire capital. Like three times but. Those were small those, were small capital, like it, it does not make any difference to your early, lifestyle, because, I was trading along with my college so you can imagine like trading. Some used, to be ten twenty thousand nothing more than that ten, twenty thousand in India is like, in for global economy, is nothing it's like a, four hundred dollars or something three, four hundred dollars so that used to be the capital and I I am, very grateful that, I lost because, losing, the, money back, then was. Very more. Of a thing, which. Is helping us right now okay. Losing, all the money I have right now I may, not be a four able to afford it but losing all the money back then there, was a good, thing that happened basically, I see, and realize, that probably, after three years of. Starting into it so. After I completed my college I started. Working as well, as I started pursuing my post graduation, simultaneously. There. Back then I realized, that okay there, are not, one two or four things there, are like tens of things which I am doing wrong, yeah. Which every, I think a lot of retail investors are eighty percent of retail investors would have gone, through it they're, trying to bottom, fish stocks which, then they are stuck into for years together and it takes like multiple. Years for it to revive, and at least come back to their cost we, will one thing what people don't realize, is that if stock at thousand. Bucks falls. To fifty bucks okay Falls 95 percent falls to fifty bucks it has to now jump. 20, times. For. It to just get back to its original price forget the profit. People. Are trying to average it on the lower side rather, a, best strategy, would be to average it on the higher side because.

If Try you try to average it on the lower side you buy more when the stock is falling you, are not accepting, that you are wrong you are not accepting your defeat, but. If you have Ridgid on the higher side you bought a thousand, you bought it at 1200, 1500 1800, then. You are adding fuel to your winning streak, I. See. So. This actually you are ready sharing some best practices of trading already from that, itself so when, did that. Aha, moment came for you that you, realize that you have been doing everything wrong, and that, you decide. To make a change to all these things was. There somebody who inspired, you to change the way you look at reading or was it some kind of books or whatever that that a result, in you having that. Moment of change into, doing something right rather than what, you have been doing previously for the past few years. When. I lost my capital, for the third consecutive time, without. Making money so it was not that all trades I was losing if I, am trading few bucks in one trade and making, another few, bucks in another trade the third trader takes all of those money which, you have made. In one or two trade a very, important, aspect in that comes, to discipline, and. The trading discipline, right after being. Six, years into practicing, full-time trading. And. Observing. Stock market since the past twelve thirteen years my. Conclusion, right now is that, charting. Indicators. Patterns. Price, behavior everything. Everything is below, fifty percent of, what is required. Above. Fifty percent of what is required is. Psychology. Execution. And discipline. So. I realized, it when I got, busted for the third time in a row that there, is something wrong so, I spoke, to my uncle at, this. Is what I am facing out so he was like it's very early for you to start I would, advise you to get, yourself trained into what field you want to now fundamentals. And technicals are two streams in the market where you try, to make money I always wanted to get into trading rather than investing, now. A person, cannot trade based, on fundamentals, right unless. You are very well-connected, in India and you, have all the news flow as possible, flowing. To your, inboxes. Every day or every hour to. Trade now that's also, an illegal practice I. See. And so. After. You realize that there was something wrong with your trading, strategies, or the way you trade, and you, started to improve, by understanding what is the right thing to do so thereafter, what, kind of strategy, do you actually start we, if when. You started to become more proficient and how, is that different from the kind of strategies, that you have right. Now now that you are very experienced, sherry bus the difference between the. Early days and right now the strategy the kind of differences. The. Biggest, difference, from. My early days and right now is that, the much that, my chart appears more cleaner now. And. The, more bombarded. Your chart is the lesser. It will speak to you like, technicals. Technicians. Believe that, if you spend more time with charts, one. Day it will start talking, to you, yeah. And then, every day it will start talking to you so I jokingly tell people, around that spend, more time with. Charts than your girlfriends, and wives and they'll, start talking to you and they'll talk, more sense instead. Alright. That's interesting, so do you during your your, learning phase was, there any specific. Trading. Expert guru or, legendary. Trader or any, books that inspire, you to, learn. What you have learnt today today, see. I have read few books like, five times, of just leave them all the basics of stock markets of, Thompson, mayors and, Edwards. And McGee etc, but those were in the learning phase rest. I think books cannot teach you the. Implementation. Of our application. Of knowledge books, can give you knowledge you can be a very knowledgeable person, but, in market what succeeds, is that, how good, are you in applying that knowledge so. I was introduced by a person. Called. Sanjay evade okay. To technical analysis, in India, is a bomb base trader a trades forex is. Really. Is into crosses then, it's. The three part, journey like I was introduced, to trading, to, technical, analysis from him I was.

Helped. In refining, my trades by, another, person and, the. Trading, execution, which, has happened which, is hand. Rolled into me by, my uncle itself. Like at the end family is what helps. You take. You on board yeah. Okay so let's, go into some discussion, about, how. You actually run your trading. Business right, now so, maybe for a start would you like to describe, to, us what is, the main trading, strategies, that you are most commonly using right now is it just one, specific strategy, or you have a range of different strategies, for different kind of conditions, maybe. You can show us a bit more yeah. So you have three I operate, basically, on three kinds, of strategies, okay, one is an intraday trading strategy, where I am very strict that I do not trade stocks I trade. Only indexes, on an intraday, basis. Second. Is a positional, trading strategy, which is only on stocks never, do I have a positional, trade on any index and. Third. Is. Trading. Cash stocks and trading, long term futures. Like. You carry your derivative position. Your leverage positions, for, like six months one year one and a half-year, in. Expectation. In expectation. Where there, is a theory behind it and an expectation that the stock will rise say 50. 70 80 percent now, about 50 70 80 % even if it takes two years to rise, you are on a derivative, trade, which you are already on 8x leverage so, that's a whole lot of money but. You don't bet a lot of amount there because, the downside is also, true so, you go, ahead in those trades only. If your risk reward is more than one is 210, say. For example you are betting for, a one-year upside on a stock for 50 percent your. Stop-loss should, not be more than five percent. Yeah. I see a G, the first strategy on an intraday basis is that I trade nifty and bang nifty these are the most two widely traded indexes, in India that, I trade on an intraday, basis, now, this intraday, does not include. Time. Frame that I will start at the start of the day and exit. At the end of the day no I can, enter in the first fifteen minutes and get out I can. Enter say after two three hours or in the last hour that depends on what kind of setup what kind of chart setup you get I. See. So okay, let's just focus a bit more on the intraday, first and after, that we go on to the position, one for the very long term one I think maybe we'll just skip it for this time round because I think most of the participant will be more interested in the intraday, or shorter, time kind of swing trading alright so for your intraday, trades as you say you focus on just the indices, and just basically, to two times write a nifty, and, Bank nifty right yes. So what, exactly do. You look up for as, a trading, signal, when you are looking at intraday, trades, such, see. First I want to clear. One thing that I am, only. Price action trader so, I do not use any indicators, so, signal, looking out for a signal is not, a part. Of the game yeah, so, I do not look for any indicators. Which will give me a buy or sell signal personal. Theory behind it I will explain you after, we are done, with this so. Basically, if you know patterns, like. There are cup and handle patterns inverted, head and shoulder pattern a few continuation, and few reversal, patterns say triangle, breakouts a. Rectangle. Breakouts. Yeah. So those patterns I try to apply it on a shorter time frame I see. And what is the kind of time. Frame you look at in terms of if you are using candles these are using or like a mini candle or or thick, or based, on thick sand stuff matter I use. A five-minute, as well as a 15-minute candle, combination, okay. That's not on one chart like I have multiple, charts open firstly. The breakout should happen, on a early. Candle on a 60-minute chart and then, you try to place your entry, on of, I wore a 15 minute candle in conjunction, so, if you come to my trading screen on any given, trading, day you, will see there will be like. Nifty. Spot candles, of 5 minute and one are ok, then they'll be nifty futures, candle, on 5 minute 15 minute one, are and there. Will be simultaneous. 5/6, of charge, open for bang nifty so there will be like 1213 chats open and all to, trade those two indexes, now, if a pattern, is giving you a break out on nifty, spot. There. May be a chance, that the similar pattern is not giving you a breakout - nifty, now. Retailers. Need. To understand, that nifty. Trading, happens only on futures in India you cannot trade nifty spot nifty, spot is a derivation of those 50 components, and it's just a price movement so. There's. A compulsion. That the same pattern should break out of nifty futures pattern. As well. Generally. When you trade stocks you are advised, to not look at futures chart but, if you're trading indexes.

You Are supposed to look at futures chart if you are trading intraday because. The spot nifty, may give you a false breakout. But. The futures nifty will not give you a false breakout because people, position, themselves only, on the futures thing people. Are betting on the futures thing not on nifty if, you are a nifty trader you have to complicity by a nifty futures or. Nifty options, I, see. So are you most. Of that sell for these intraday, trades are you actually using a lot of gut, instinct, to get, in and get, out in a way or do you have very strict rules. Or. Formulation. That you only, see these then you will get it, yeah. I never, trade on gut feeling because. I think your, gut can beat you but the price won't yeah. So I trade, only if the price breaks out or breakdowns. Of a certain pattern like that pattern can be anything that can be a triangle that can be a flag that. Can be head and shoulders that can be cup, and handle anything anything, which is the right which, is derived out of trace the. Pattern could be anything. Unless. It doesn't break out on both nifty, spot as well as nifty futures I don't, enter the trade I see. And. So. You you trade you enter on the breakout do you attempt to like enter, on the, fubá, arriba so, during. The yes. Yeah. I try to attempt. On the pullback and reversal, as well but there are only a certain patterns, which I try, to do so like, there is a rectangle, pattern okay. Where the. Stock breaks out of a consolidation. Okay. Or the index breaks out of a consolidation. Now that consolidation, on an intraday timeframe can also be a two hour solid Asian or 90-minute, consolidation, anything it can be so. That pattern is more, familiar. Of, retesting. Its breakout and then pulling, back again, so I would look for a pullback only, on that pattern I will, not look for a pullback, on all the patterns possible, because, I generally trade nifty. Futures not. More than a tie with not more than a 10-point stop-loss, when you are trading intraday because. You don't intend to make fifty, eighty hundred points every day on internet rates you intend to make only thirty points on an intraday trade because, the average volatility. From the swing high swing low, on, ft in India on, a daily, basis, is roughly, seventy eighty points and if, you try to make 70 80 points daily, that's. Just not possible, so. On the topic of a stop loss how how, do you actually determine where the stop loss is is it based on a certain number of pips of Poobah or is it based on some technical levels how, we actually establish, your stop-loss and at the same time how do you actually decide. When to actually take profit. The. Profit is, taken based, on what, pattern, every pattern has its own target the, target is generally the depth of the pattern which you add it on the breakout point that's, general that's a general scenario when you're trading price patterns so, I make. Sure that I take, out 80% of my position on the target, get hits then, I say, for example if I have eight lots of nifty I will, take out six, lots of nifty on the target hit I'll, wait for how the index, is behaving at the target point it is coming back is it coming back or is it giving a further extended, move on the upside, to. Decide my rest twenty twenty-five percent of the balance position for it to get exited but, I'm very much happy taking. Twenty twenty-five thirty points, on a daily basis on if. T intraday because. If you add this up it. Will give you a staggering thirty, thirty five percent monthly. Return. Because. You, do not require capital, people don't understand, that you do not require capital. To. Be deployed, if you're trading intraday, you just have to place, that capital with your broker also. You can pledge your shares to get. Derivative. Trading imagine if you are trading intraday you. Have to pay him only if you make loss you. Don't have to pay him if you don't make loss, okay, so minimizing, your loss is one, thing that.

Everyone. Should focus on now, coming back to your first question that where do you apply your stop-loss now. There are two ways where, people apply, their stop losses on one. Is the, swing loop where people apply the stop-loss what I have come. To. An observation is that if you use your swing low then. The. Odds of you entering, trades with say. 1. Is to 10 or 1 is to 20 or one is to 40 kind of a risk reward ratio which. May sound right now that. This guy is telling, anything but we do actually treat it I have, records of trading on such risk rewards, every cousin. Social media telling people to trade on 1 is 250 risk reward ratio, just. Like 2 months back, yeah. So, if. You keep your swing low as your stop-loss never, are you able to, get. Those risk reward ratio so, typically, for intraday, trade are you what kind of risk to your ratio are you typically looking at of course not all the time they will be the same but generally, what is the kind of research, we already show before you think that is worth taking a trade on, minimum. 1 is to 3 minimum. Nothing less, yeah. Nothing less than 1 is to 3 because, I believe 1 is to 2 anyone, can do it and if you are betting one is 2 and then try, casino. Why come to the market if you are trying to bet on 1 is to 1 yeah. So 1 is to 3 is the minimum, risk reward ratio we, try to look, into a trade before entering if we don't get on any given day it's fine we don't take the trade there's no. Compulsion. Or, nowhereness holding a gun on my head that you have to trade today it's. Fine if you don't trade on even, day I see, and for. This kind of intraday trading strategy, it seems to me that you have to spend a lot of time in front of the screen right because it. Seems to me that you are not like a systematic. Kind of trading. Or algorithm, trading but is really visually, looking at it so does that mean that you will have to spend a lot of time sitting in front of the screen in order to be able to see what, any. Trading, ideas, to get e and, when you should actually get out and stuff like that how do you have a systematic, way of doing this entire thing no no, I spend, the whole time the, marketers on in India on, the screen from, 9:00 a.m. in the morning to. 3:30. In the evening I spend the whole time on, the screen, itself okay. If that's the case do you actually. Recommend. Or suggest that, like independent. Retail traders, to actually try to trade intraday it let's say they have a job or they have a business to run what. Was your perspective on this no not. At all not at all if you have a job or a business, intraday. Is the last thing you would ever think, of tried, doing a swing trading or try doing a positional, trading which, will make you enter, into a trade, for. Multiple. Days to multiple weeks at least, intraday. Is a thing where if you are on the screen if you are a full-time trader only, then you should do also. It's the last thing a trader or an aspiring trader should think about doing the. Major mistake, with everyone. Comes. Across is that they. Try, to, do. Intraday, trading as the first thing after they learn technical analysis the, first thing is what they try to do. Intraday trading that okay it's a risk. Free trading no my friend it's not a risk free trading instead. The, odds of losing money in intraday, are higher than, what you will lose on a positional, trade. Because. I think a lot, of people talk about strike, ratio so, I think the strike ratio, on entered a trade is, lower. Than your strike ratio on a positional, trade if, your strike ratio on a positional, trade say comes to 7080, percent. The. Lower the time frame you go on the, lower will be your strike ratio if, you. Go on to an hourly chart maybe it will reduce to 50 percent if you go on to a 5-minute, fifteen minutes and maybe it will reduce to a forty percent but even, at a forty one fifty percent strike, ratio you, will be able to make a lot of money, because.

If, You, have to be, very strict with your stop losses that if you stopped us has got hit you have to exit the position second. Thing you need not bet on anything which is less than 1 is to 3 that. Will help you stay. Afloat. And in any market. Scenario I see, so basically if I can just summarize, the. Expect about intraday trading is that yes, it, could potentially generate you, very significant, returns on a month-to-month basis, and, a drawdown amount, of my basis can be actually quite minimal in-phase possible, to have positive months, most, of the most part of the year right but, of course the downside is that for intraday trading you need to have a full time effort on it you, need to spend your time right in front of the screen and you need to act very fast a lot of time so there's always pros and cons to. This kind of introduce, strategy, right so which, means that leading, us to the next topic which, is your position trait, itself so, I reckon that would be something that's more suitable for those part-time. Retail, traders, right so maybe, drifting. On into that position trading. Wise what's. The kind of trading horizont for you when you look at position, trading typically, how long do you hold a setup position for, a. Positional. Trading can, be anything between two three days two to three weeks that's, what an ideal positional, trading is for us when you are trading derivatives if you, are trading only the cash market which a lot of retail investors are into you, can look out for from. A few. Weeks to a few months because. The. Target. Ratio, or the upside or the downside on, stock is also quite high when you are trading positional, you, will not look out for 10 20 30 points on Nifty but, you will look out for few percentage, points on a stock. For. Us we do not enter a stock for say. If. I intend to hold a stock for more than one month so. We will not enter if the upside is less than seven eight percent I see. But, and. What kind of strategy. Do you use for your position trading is it still the same thing using breakouts, as well in your position ready and what, are the kind of instruments. Or the asset classes you look at for your position trading, strategy. Currently. We are only into stocks we, do not trade index as a positional, trading. Thing. The. Problem, is that you. Are very accustomed. To gap ups and gap downs as far, as Indian markets are considered because, we do not have an over futures, market it, is there where. You are based at Essex so we look at SDX nifty but being. A citizen of India we are not allowed, or authorized to trade on that so. A lot of times what happens is the futures on Singapore, exchange are indicating. Something which leads to a gap up or gap down yeah. So, that gap up or gap down if that, gap a gap down happens, against, me. Then. My, stop losses have gone say for example if, I was a positional, trader on nifty and I am looking, out for a 200 point move and, nifty with. Say 30, 40 points, topless okay, what, if next day it gaps down 50. Points, I. Compel. Sorry half the square of my position and what if the gap gets filled, in the first five minutes what do you do what. If the gap, extends, in the first five minutes what. Do you do after a 50 point gap down it goes down to 80 and you. Are assuming that okay it will come down from 50 it will come down to zero or if, you square off at 50 and it comes back back to zero that is. Why we have stopped trading, indexes. On a positional, basis for. Stocks we trade out of the 220 fnot 210, 220 - stocks, we. Trade only a select 50, stocks which. Are very strong like, a strong stock need not be, analyzed only on a fundamental, basis a strong, stock can be analyzed looking at the charge structure, as well that, is not very volatile it's very stable it's a slow mover regardless, doesn't, matter but. It has to be a strong strong okay, it has to be some of the sector leader not, a very low market cap not a very small cap or mid cap. Company. Now. A benefit, your, happens, that even if the. Index gaps down by 50 70 points and even. If the, other sectoral, index, are in red a strong, stock will, not for that's what our experience, has been a strong stock will not fall as much as the indexes, that, is why it's a strong stroke that.

Is Why we get into that, but, even, at 50 70 80 points, Nifty down if, you are betting on a strong stock and other stocks are 2 3 4 % down your stock will be only half, percent down which will be well, within your comfort zone or your stop-loss. That. Is why we trade only on stocks and, do. Not trade indexes, on a position basis, I see. So you have a lease of USA 200, over stocks, right so does that lease of stocks change over time and when do you decide that you need to reshuffle that, the release of stuff stays inside your, shortlist. See. There is there are 220 stocks by. The exchange, in the future segment we, have a list of only 50 to 60 stocks now this keeps on shuffling, not, very frequently, say maybe in six months eight months if, some, company has done pathetically, bad or it's giving continuous, false breakouts, see, you have to, understand. That nothing is hundred percent in this market market. Is, probability. Market. Is a place. Where you bet on probability, you bet on the odds of, you getting right. Then, on the odds that, minimizes, your losses. Yeah. So, in such cases what happens is I. Lost. It could. You cut this yes. I can, still hear you see you. I lost. The link I lost the link can you cut this power okay so how do you actually. Determine. When, the, short list of stocks is going to change or, you said it on a half a year basis right, yeah. Like we change it on a half. Of your basis, based on say. For example, a company is trading, a thousand bucks and consistently. Is being, performing. Poor on the exchange, regardless. Of what the news flow is maybe some negative news flow is influencing, it maybe some poor results, are influencing, it maybe, some raw material prices maybe any fundamental reason, is influencing. It and this, is not. Performing, well and it has become very volatile, even. If it is falling down we can go and short it even if it is falling rising. Up we can go and buy it but if it is very volatile, say a weekly moment of more than 10 20 percent is being, observed, week on week basis, then, we try to not trade it because it doesn't suit our temperament. I am, personally, not very comfortable, trading very volatile. Now. There. - - traders. -. Kind of traders one is a volume-based. LED. Based it would, want to classify myself, as a volume-based trader rather than, a volatility, based, trader I do, not, like very volatile stocks to be traded some. People find. It very exciting that ok if you are trader you need to trade, on volatile stocks we, are somehow not very comfortable, trading on very volatile stocks, I see and what's the typical strategy. You use for your position trading is it same like breakout or Kubek, our what, it's. Same on the breakout and pullback part, the only difference, on a. Positional. Basis is that we use daily chart, as well, as an hourly chart we. Use a daily chart breakout first, if the, breakout. Has happened on a daily chart on any given pattern what we discussed earlier we. Try to find. Out an entry on. A 60-minute. Chart I. On. A 60-minute, chart because, if a stock has broken out on a daily chart say, if the. Daily candle is five percents, then my fire my stop-loss, is very much higher but. If that, daily, breakout is giving me a follow-up moves after, one or two days, say. After three days and I, am trading. On fresh. Breakout, on a 60 minute chart then. My stop-loss is is less and my, target. Is still what, the daily chart had indicated, it to be so. To minimize my stop-loss I use a combination of, 60, minute chart to enter early into the trade nothing, nothing else the. Basic. Strategy is to trade on the daily breakouts at only, IC. IC and. So. Does that mean that your stop-loss and your profit taking strategy, is pretty much the same as how you do in intraday, or do you have you implement, things like trailing, stop as such. Because. Because, I am a price. Action trader, so. Trailing, stop losses for me there are no indicators, are there no moving averages, that I will keep trailing, my stop losses below it okay. So, I trail, my stop-loss, based, on a fresh, pattern, which. Means that say for example I'll give you example, with no okay, say for example a, stock, is broken, out at 500, rupees okay, I am, trading it with the stop-loss at 480 and a target at 600, okay, now, what.

Are The odds that the, stock would go from 500 to 600, this way the, odds are like 1, is 200 maybe, 1 stock out of 100 will go in a straight way from 500, to 600, right, so. Currently. My stop-loss is still at 480 now assuming, that the stock, is a normal, stop and say, that 20 percent move will take it to 3-4 months for it to get achieved, so, the stock is not going to rise up every day five percent and hit at 600, mark that's, what the, original. Theory is like. One or two exceptions, are always welcome out of, the hundred, stocks you are scanning, through but. Then if the stock goes from five hundred to five thirty five forty five fifty it. Has to consolidate, after a run up right so, when it consolidates and, again, starts, running towards a target we. Trail, a stop loss at the consolidation, point. Because. I don't have indicators, I don't have moving averages to guide me because, I think those, are misleading, indicators, that's my personal belief nothing, against, someone, who uses it yeah. I sold, my. Stop-loss where the stock, had, consolidated. Where, I'm not the change of hands between bulls and bears and it happened where. Another indecision, for a few days had happened and still, lose one if it's, on a higher side breakout Bulls won so, I will place on there again on the last, bear, possible, of the consolidation, I shall. Trail stop-loss. There okay, and with. That, with regards, to let's. Say whether, is intraday, opposition, trading let's say you decide okay I do this particular, trade already how, do you go about sizing, your trades for both your intraday trades and your position trading, is, there based on some certain percentage, that you are willing to lose in each, individual, trade or some other ways any how do you sighs sighs outreach then yeah. See, in, positional. Trading which, is from, three weeks to three, days to three weeks okay. I do not enter. A trade with a view that it will. I will. Get out of that stock on an intraday trade for. Me stock trading and Futures Trading is different also I trade in two different accounts, okay. I do my stock trading into a different account and I do my futures. Trade index, futures trading, into a different account so while trading, index futures I, go. With only one, strategy that say, for example we will, take for example five Lots so, I will enter with a five lot nifty and with the view that I will get out of the target in. Case it, is retesting, my breakout I will. Wait for it to Rita's memory card and if it starts. Rising. Again, from my breakout point I will, add on to my position. Because. This. Gives me double confirmation even, more confirmation than what I had entered my trade on that okay, it retested, its breakout. Point, Bears. Tried, to bring it down but they are unable to bring it down and now. It is again, trying, to go back to its target so the odds are now more or less for. It to go and hit it stop-loss, or trigger my stop-loss so I add on to, the exact amount of position another five Lots and exit, everything on the jacket now. This time I will not wait off my, 80%, of the position, at. The target I will not exit my 80% of the position I will exit my 100% of the position because I have to understand, that I am, over leveraged, right now. My. I decide, to. Trade only five five, Lots I am, now trading ten loads then I am over leveraged now these are examples, I am not telling that I trade five or ten or fifteen these, are on a hypothetical example basis, so, how do you decide, let's. Say for this trait you wanna carry how do you decide whether is gonna be five Lots follows or one lot is there a particular way, you you, go about sizing it oh yeah. I I, started, it with one Lord few years back, see how nifty intraday trading it's, been four, years now that I am trading obtained today I started, with one Lord now, I would not want to disclose my position what we, are trading right now but I started with one Lord after. Consistently. Making profit, for two months I increased it to 2 then, I increased it to 3 then I increase it to 4 so you now. On a consistent, basis, if there, is a draw down on one month you do not increase your position you, have to be consistently, profitable, before, increasing your bed size because. What happens if you make money for two weeks and then suddenly from, two lots you go to 20 lots that two, weeks money is going to go, down and once topless, one day's topless, yes. That's what you have to understand that you have to be very very consistent. Consistent. In your, profitability, before. Leveling up so that you the, odds of you coming down see there's, always a downside open, even. For the best of best traders there's, a downside open but, you are minimizing your loss to come down again you. Are minimizing your odds to come down again if you, are levelling up very smoothly I see. Is that the same way you size your trades for your position trading as well, no. Positional. Trading I do not add on to my position if it's a three day to three, week style I add, on to my position for, long-term positional.

Trades Because, you're, the. Problem, here is that it's, very volatile, when it comes to stocks though, we try to minimize volatile, stocks we try to filter out that okay we are not trading here but, still in India the. Stock volatility, is way more higher than what in the developed markets are so. We. Trade on a fixed position says, if it's one lot it's too lot at three lot whatever it is we trade on a fixed position we do not add on to our positions, yeah. But we exit. In parts we. Do not add on but we exit and buts we generally, have two. Targets. For each pattern generally. The general scenario is two targets on each pattern we, exit, 50% on the first target 50%, on the another, target now also you have to base. A lot on price action which. Means say for example, the stock has hit your first target and it is on the way to your second Duggan and does, not hit is there is no guarantee right there is no assurance of added position your stock will get hit to a target, say. For example if it does not get hit to that target. What. Will happen if it will give you a reversal, sign you. Have to trail your stop-loss, at least, bare minimum, to your first target so that you, take at least your first target money, oh and not lose their out on that because you still have your half position balance, open it, so. You have to trail your stop-loss, at least Valerio, book to your first profit that okay I've booked my first profit around, that area my. Revised stop-loss is there I will not allow my balance, position to go down below, this if, it goes down below this I will exert it so that you will at least go home with something rather. Than say for example the car previous. Example what we were talking about 500, what, drop, a target. Of $600. 480 say for example you, exited, partial, position, at 540, and the, stock reverses, from 570. You, have to exit your balance position near about 540, say 535, still you are taking, home that 35, rupees in, case the trade doesn't work out you, will obviously want it to work out but then there are certain market, circumstances, where, for a day for two days it comes down though it will not go back to 480 but it comes down a bit hit, your trailing stop loss and go again up so odds are they're always there, nothing is hundred-person in the market I see, very interesting and well, it seems like there's so much to do especially, for your case where your trading book infrared.

A Position, trading and even a much. Significant, longer time frame right so how, how do you actually handle, your, day on a day to day basis. Maybe, I think it's very it would be very interesting, for us to understand, on a day to day basis how do you actually manage your workflow, in, order to be efficient. And yeah, effective, at the same time. We. Start. With all, 220. SEO stocks scanning. On a daily basis, okay, now scanning, does not mean that we, have few scanners installed in our systems, for, me scanners, are these, human. Eyes are the best scanners, possible, okay. Because I. May. Not want to abstract, anyone, who makes scanners. Or who sells scanners, but. I think that nothing, can be humanized, right, now, that. That's what my belief, is the. Amount, of risk reward you can generate scanning. Humanly, rather than running, up a scanner or, running. Indicator. That okay this is crossing over this that is crossing over that xxx cetera, the. Odds are very less in that you. Will get a trade, consistently. On with a better, risk reward ratio so, we start our day instead, I will talk on the reverse after the market closes I have. A homework to do of saying. Around close to around two hours out, of which the first star goes and scanning all the Sno stocks listed though, we do not trade all Affinia stocks but still I make a practice, to view all this like ethanol, stocks every. Day because. What. How. Would you know that if something is cooking up very interesting. If severe. II interesting. Pattern. Or a very interesting, trend. Is emerging into, a new stock you. Will have to get it included, in your list of tradable, stocks and you. Will have to get few stocks excluded, out of your list of tradable, stocks now, this is not a very fixed list this, can be 50 45, this, can be 60 65 roughly it's 50 60 stocks out of which we try to pick up the grades now. Not. That I have 50 60 stocks, positions, open all the time I will, have open positions only, on 2 3 4 stocks at the, max in case, of leveraged positions, in case of non leveraged positions, I will have at the max 7. 8 positions open in, terms, of cash trading but, I will see all 200, stocks on a daily basis, I will. See all 1012. Indexes. Indices. Sectoral, indices, on a daily, basis I will. Analyze the nifty as well as Bank nifty chart right. Before, the market opens the next day not. On the previous day I do stock, analysis. On the previous night or, previous evening after the market closes but, I do index, analysis only, on the same morning why, there. Is a reason behind it because. Indian. Market, opening, is kind. Of influenced. By how Dow, Jones has closed, overnight how. The Singapore. And Asian, markets Japanese market have opened, in the same modeling so there is no point in me sitting and analyzing, it on the previous night that. Okay this, may be my entry point in nifty and nifty it is not going to open there so. Assuming that the market is going to open 0-0 flat it's. Just not. The case like it doesn't open it will, open few points here and there always and it will be majorly, influenced. By how the Asian, markets, have opened how, the US market has closed overnight so. From from. An execution, perspective. All, your entries and exit, manually. Done, at the point in time where you decide to enter or exit or do, you actually enter some of your like stop loss or profit taking, into the system itself and they were just automatically, execute for you because otherwise I really I really can't see how you're gonna be able to take a break and go for a holiday if you have to do all of this manually, so how do you go about managing all this, say. When I go for a holiday I make sure that all my positions are squared off okay. And only, then I go for a holiday because I don't want that pressure of the market to be along with me, it's. Under position trading is now, yes. Cash trading is fine like cash position leverage trading I do not carry any leverage trades when I am on holiday. It's. Never the case and, also. You have to plan your holiday say, for example if it's a five-day holiday you. Plan it with an extended, weekend or something, so that you lose out only one day here and there I. Also. I am. Coming, back to the stop-loss say. For example 480 was my stop-loss, right, so. I will not. Enter. 480. In my system that's how I trade I am. A. Person. Who will try to observe, that if the stock, is rejecting.

480, Or it is sustaining, below that so, I will enter my stop-loss very much below say. To 3%, below it in. Case, there is some bad news on, a stock. On. The, media, or, it. Is put up on the exchange of some. Developments, by the company, which is not very well perceived, by the market, so. The stock may go tanking, when maybe I have just gone for a tea, break or say. For a washroom break in. Two minutes the stock would go, crashing, down okay. For. That to save yourself, from that I put up say around 460 or 450, I will put up my stop-loss but that's not my actual stop-loss, my, actual stop-loss is 480, even. If it remains below 480 for some time I will exit my position, that, is just, say. It's. Put up just in case because. Somebody, was. Yeah. And. It's. Put up if there is some negative news like you it's, very much influence, here not here globally. As well you you have seen Netflix down 15%, that day right, so globally. Everywhere stocks. Are driven by news flow as well so, to save. Yourself, from such a news flow when you are out on a two minute break as well now, it's a humanly you. Are humans right you will take 2-3 minutes break everyone to ours here, in there so in that case if something, comes up it. Should not take me 20 percent away, it. Should not take me 30 percent away now, this generally. Doesn't happen every day this happens, once in say three four months that, due, to a news flow something. Wrong has happened okay. But. Then why to take risk what. If your good quality, stock or your stable, stock your non-volatile, stock also, has some bad news and goes for a toss there. Is no guarantee of anything here so that, is why we passed our plus which is way more lower in the system based but. Our actual store Plus is not that. All, so there is no buy above strategy for me I will, not put a trade say buy above 500, no. I have to see manually, myself, that okay it sustaining, above 500, now I will go and plug in my, order there is no buy about rate ever entered. I see. I see and so, do you at any point income in your trading career, start. To think about maybe my strategy, is not working out anymore and, how do you actually go about reviewing, your strategy, your workflow and make improvements, on it or is it something they just keep on doing the same thing or away. I. Try. To do the same thing all the way but then you have to change your strategy depending. Upon the market scenario like. 2017. The whole year was, a very good one way here for, Indian stocks for, mid caps as well as large caps but, 2018. Has not been very good so, the strategy of, riding. Your winners. Revising. Your targets. When the target get hits re-entering. At the higher level of for. A new fresh breakout, is. Not, working, in 2018. 2017. Generally. We used to hold stocks for more than one week to week right. Now we are not holding it for more than three four days three. Days is minimum or else we don't enter yeah obviously you, have a view of stock, entering. Giving. You 5%, move in the next 3-4 days if it gives you tomorrow obviously you have to exit, yeah. My view is that I will not exit in before. 3-4 days but if it is giving you the return you have to exit right so, your sell, order is always put up on the. System. That okay my target order is put up but the buy above order is never put up I see. I see alright so there, was really a very fantastic session. I think the, semi participant, managed to learn about both intraday, trading, as. Well as position, trading so if less if, there's any three, key lessons that you can actually impart. To. Especially, those independent. Retail traders, what, will be the tricky. Things that you will want to drill into their mind and make sure that they remember when, they are doing trading. Okay. First. And foremost. The. One which I started with never. Never ever by. 52. We closed and always.

Always Always by, 52-week, highs because, trust, the market there is a reason behind a stop being at 52 week high or lifetime, high and it, will keep going because. Each, and every person, entering. At 52, week high knows. That the stock is already at 52 week high and still wants to enter. Even. Look, at the momentum. What did job captured. I would have, 90 100 in a matter of money oh this. Is always, sell 50 degree close that's the first, thing I would want to, LA, any participant, yeah. Second. Thing about. Position. Money. Okay. The color of say, you. Have different. Amount, of money you. Might have different amount of money I might have different amount of money if, you are capable, of trading 100 lots and I am capable of trading 10 I need. Not try to go and copy you and try hundred Lots because you may be able to take a stop, loss on that hundred Lots my, capacities, of ten lots and I'm trading hundred, I may not be able to take or bear that stop-loss. If it happens 100. Lots trade also. In the same person from time to time in, college, I told you I used to, trade for, ten twenty thousand, capital here in there okay. Now. Sometimes. Your, one two day exchange. Charges are more than ten twenty thousand the. Trading charges are more than that so, in the same person from time to time you, have to analyze, what time frame of your life you are in are. You in college, are you a 65, year old can you take risk can you not take risk are, you matured enough I you experienced, enough have. You paid the learning, fees to the market not. To any course have. You say he paid your learning fees to the market or no you, have to analyze, those things and then, keep. Moving forward, last. Then the foremost thing that's a trick, for, all retail, investors, is across. The globe all, technical. Analysts, what do they need all, chart. Is what, I am, expecting that a, majority. Of the participants in. The zoomit will be from the technical background itself, so what do we need in technical, analysis, we need what's the price today and what. Was the price previous. Before, today what was the trend. Before. Today to, analyze or to try to forecast, what, will be the future move what. Will what. If there is something which does not give you our chart. What will it be like, what. What is what is the segment. Or what is the stock. Idea, which, does not have a chart it's, the new issue market right, it's the IPO market IPO. Market does not have. Stock. History that. Is why a lot of technical, analysts, are. Afraid, of, trading. A stock which is just listed, they, will wait for few. Days to, a few weeks to a few months before. Really, taking her to paid that okay this might move this way okay. Now this is a trick which we give in. Our workshops, as well to a lot of retail. Investors and they are very, much interested in it is that. You. Make. An excel sheet and you, note down the. High like. The greed what. We call high and low is greed and fear you, note down the greed of the. Listing, day of the stock. The. Day the stock gets listed you. Note down the highest point of that stock in your excel sheet or a notepad, whatever, and then, you wait, for that stock to take out that high may. It be in few days may it be in few weeks may it be in few months the. Moment it takes out its listing, day high you. Will get a return. Of. 12. To 15% in a matter of 12 to 15 trading days that's, what we have been observing and, this. Is applicable across, all. The. Markets globally. Across. All the segments, globally but only on new issues oh. Yeah. Or there will also be a segment where if you know there will be hive offs, hive. Offs in a company a parent. Company is listing, a separate, segment. Of its on its own and trying to list it this, is applicable there as well you, will get a return of 12 to 15 person in a matter of 12 to 15 trading days. You. Already, do you know the stop-loss where we better stop losses on okay, you bet on the last bear of the day. Fantastic. I think maybe after this session I will start looking at other new issues to, see whether we can potentially apply, this, as well okay. So lastly, if, any, of these summit participants would, like to reach out to you or to get to know more about you when can they go to to learn more about you, and the things that you do. Okay. I update, my blog which, is the, profitable, Indian Dorton but, it's not very regularly updated, but yeah we have a newsletter which, is circulated, on every morning and right. Now it's on the free run later it will get paid say, til October or November it, is free as of now so, they can register there, and they, can receive the newsletter in their inbox every, morning that, will have our indexed, view for the day like, by above levels sell below levels a short, market commentary also. Positional, view that what do we expect in. The near term in the market fantastic. Thank you so much for your time mukesh today it, has been a really wonderful sharing, that you have and I hope and I believe that the summit participants will. Get a lot of value from your sharing, so I wish, you all the best in, whatever and the floor that you are focusing on and hopefully, you will have a chance to have a chat again in, the coming days and I wish you all the best thank you so much for attending today's, on.

My Trades I mean okay thank. You so much Philip thanks. Oh.

2019-05-13 14:29

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