Position sizing & Trading with Support and Resistance

1. Do position sizing correctly.
2. Take trade on Support/Resistance line.
3. If the trade is at middle, avoid intraday.
4. If trade above middle - Sell intrade at resistance.
5. If trade at support - buy intraday.

Lessions learned 17-Sep-2019

1. Did not look on technical's and wait.
2. Overbought.
3. Went against market.

What to BUY

FEAR+LUXARY AND WHAT TO hide

Fundamental Analysis - Banking

Gross NPA

Net NPA

Divergence

Net Profit

Borrowings

Promoter holding pludged

3 Common mistakes in trade

3 Common mistakes in trade

• Trading against trend.
• Trading far too big in case of size of trade. 
• Setting stop loss far too tight. 

INTRADAY - LESSIONS

LOOK AT INDEX+SECTOR INDEX+SCRIPT INDEX BEFORE TAKING DECISION.
ONLY SELL ON NEGATIVE DAYS. DON'T BUY(RISKY)
BUY ON POSITIVE DAYS.
5MINS CANDLE STICK FOR 3 PERIOD ---
VOLUME CANDLE TO KNOW THE SELL/BUY VOLUME.

LOOK AT CANDLESTICK, HEIKIN ASHI BEFORE DECIDE.

• IF 3 GREEN - 4 GREEN - BUY - 4 RED 5 GREEN BUY
• IF 3 GREEN - 4 AND 5 RED - WAIT.
• IF 3 RED - 4 RED SELL

Lession 1

EMBRACE THE LOSS. EVERY PROFIT START WITH LOSS. LOSS IS THE FIRST STEP TOWARDS PROFIT.

LOSS IS NOT A LOSS WHEN IT'S MANAGEABLE. 

FEAR COMES WHEN YOU DONT' KNOW THE RISK. MAKE AN ESTIMATE ON YOUR LOSS AND ACCEPT THE LOSS BEFORE YOU START, YOUR FEAR IS GONE. 

WHAT IS THE NEWS DOES NOT MATTER. HOW MARKET (INDEX) REACT TO THAT NEWS MATTER.

EVERY PRICE DORP IS AN OFFER TO BUY MORE ON GOOD STOCK. EVERY PRICE DROP IS AN OPPORTUNITY TO EXIT ON A BAD STOCK.

1. Invest only on stocks which you are convinced with fundamental/technical/market direction.
2. Take baby steps when you start with a stock.
3. Study fundamentals, and monitor the stock for few days before start with a new stock.
4. Respect stop loss and accept loss. Don't over react.
5. Look on bigger picture and smaller picture before taking decision. (1M/1W/1D/1H/30m/5m/1m)
6. Don't take action based on news or heard something.
7. Don't pick on Support and resistance. Wait to know the direction.
8. Use MACD/200DMA/50DMA/20DMA/6DMA/Heikin Ashi.

Always respect market do trade only with market direction
Never over trade many trader loose money by leveraging
Do not lose more than 3% of capital in single trade
Always put stop loss
Always watch trend for some time before doing trade.
Don't give ear to rumours.
Always do little homework before doing trade and trade only in share which you knows.
Always book profit as well as loss.
Majority days the trading range will range will below so do not wait for big return on single day
Market is always right you are wrong.