TRADING (PATIENCE), CAPITAL MANAGEMENT (DISCIPLINE) & RISK REWARD (EMOTION CONTROL)

1. STICK TO THE BASIC ENTRY STARTEGIES & DON’T ASSUME OR PREDICT THE MARKET
(You may think you are 100% correct and there may be good opportunities, but don’t take it unless the entry
requirements met as per the checklist)
2. CAPITAL MANAGEMENT – 1/3
(Don’t put all your capital into 1 trade as you see a very good opportunity, this very good opportunity what you
feel may be a false break out and hit your stoploss by taking out all your profits from other trades and what if
you don’t keep a stop loss as you predicted it as good opportunity? Big loss)
3. STICK TO THE ENTRY STRATEGY – EVEN IF YOU SEE A GOLDEN OPPURTUNITY
(The golden opportunities you see is the predictions or your thoughts which may happen or maybe not; So, stick
to the basics for entry and look for the entry as per the strategies, break out or Chart Patterns along with the SL)
4. ENTRY CHECKLIST – CONSOLIDATION BO, CPR, VWAP, MA Cross, MACD Cross, Last Day High & Low
(Enter only after 1hr in the same direction of market trend by comparing with the Index, if there is weakness in
the market don’t go long even if the indicators indicates so and if there is strength in the market don’t go short
even there is a indication as per Indicators unless that particular sector have the strength against market)
5. MANDATORY STOP LOSS (Maximum 1% loss Approximate)
(Enter the trade as per the strategy and only if we can place the stop loss approximately around the 1% mark
with the support or gap from pivot/resistance/support; don’t keep the SL very close to these as there are high
chances of hitting the stoploss and bouncing back.)
6. EXIT STRATEGY
(Exit just before any support or resistance in normal cases and if you feel the strength in the market or for the
particular stock follow with a compulsory trailing stop loss)
7. Don’t Over Trade – Maximum 3-5 Trades with capital management
(Over trade and revenge trade will end up in the loss by paying a huge tax, better to stop trading for the day if
you hit the daily target loss as you will do weird thigs when you are in the losing streak. The same way better to
step back when you reach the daily target as over confidence will also put you into the wrong trades or trading
without stepping in the basics entry requirements)
8. PYRAMID ENTRY & EXIT
9. TRACK YOUR TRADING