Thread by @Trading0secrets

The cash strategy 👇☢️👇

1⃣ #stock selection process - always choose that stock which are consolidating near all time high.

(Because whenever stock will give all time high breakout then it will easily give 20/30% return in 1/2 months

U can use trading view scanner for that.

https://twitter.com/Trading0secrets/status/1448684113691439106

2⃣volume analysis - In that consolidating period volume should be high of up move days then down move days. And last 3/4 month volume of accumulation is much higher.

3️⃣ fund diversification - always deploy your capital in 3/4 stocks, not more then that or not less then 3.

And, your 3/4 stocks must be from different different sectors.

4⃣comunding magic - If you hold 10 stocks then if 2 stocks will give 100% return then portfolio impact is 20% only. (here time period is 8/15 months)

If you hold 3 stocks out of them 2 will give 40% then ur portfolio impact is 25%
(Here time period is 1/3 months)

5⃣sectors analysis - always choose that sector stocks which are near support or breakout stage.

If any stocks is out of nifty sector then u can open stock scanner website and check their peer charts. If out of 5 , 3 are strong then u can select that company.

6⃣exit rule - if anyone given breakout and give 15% then book 50% now trailing sl is cost to cost.

7⃣ sl rule - don't risk more then 4/6% in your one trade. ( u have to exit at sl anyhow)

8⃣ greed control rule - don't touch future and option until u have more then 20lac and 4 years of experiences.

And your cash and fno account must be different .

9⃣example - currently I m holding 2 stocks of my 50% fund balance.

Because #small & #mid can correct little. ( at support of index I will add more)

#bepl
#Jamnaauto

The direction #option selling I will explain in next thread 🧵

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