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
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 must higher then previous days.
Volume analysis indepth -
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 strong sectors.
4⃣comunding magic - If you hold 10 stocks then if 2 stocks will give 100% return then portfolio impact is 20% only. time period - 8/15 months
If you hold 3 stocks out of them 2 will give 40% then ur portfolio impact is 25%( 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 screener.in/screens/95733/…
6⃣ Pivot Entry rule📍 - pivot point is that point in which chances of big move occur is much more.
If stock making good contraction of price near major/minor demand & supply then only enter that trade 👇
Ex - #paushak /// #tatapower
7⃣ exit rule - if anyone given breakout and give 15% then book 50% now trailing sl is cost to cost.
➡️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 .
9⃣ here is latest example of my trades
One is taken & another one going to take .
You bought a stock at 100. It becomes 1000(1000% return) Now stock falls 50% from the high. You didn't lose 50% gain but actually, you lose 500% return.
That's why "losses work geometrically against you
2⃣- Compound psychology 💡
Many trader don't know this math👇
⚡If you take 2 trades in the year & each give 40% return then your compounding return will be 96%
⚡if you take 4 trade in the year & each give 20% return then your compounding return will be 107%