Money Management - Trading capital - 1 Crore (example)
Instruments - Equity derivatives 70 % / Commodity 30% ( 0 in equity .. don't have dmat account)
Systems in each - Trend following 50 % / View Based 20% / Options 20%
Exposure maximum - 3 Times (not as per span margin of exchanges)
trend following tools - Simple Price action / Moving Average / Renko Charts
View based - candlestick (price) / Fibonacci (sup /resis), Rsi (momentum) / Bollinger (volatility).
Options tools - RSI / BB / ADX (no open interest / no put call ratio / no greeks )
Max Drawdown on whole capital - 15% .. once hit then exit all positions market ..
Types of Stop loss - Initial Stop / Trailing Stop and Time Stop
Per Trade stop / Per instrument stop ..
Journal Each Trade with detailed reasons ..
Review of journal every 20 trades..
trading break after every 3 months mandatory ..
break after huge winning streak - to avoid overconfidence
break after huge losing streak - to get confidence ..
Approach - Top down -
on weekend - scan all sectors ... then all stocks from derivatives - make list of strong stocks for buy and list of weak stocks for sell -
filter them to max 5 in each ..
trade max 6 positions at any point of time ...
By,
Vishal malkan
Disclaimer: This is just an view based on the research of individual for educational purpose. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.
Instruments - Equity derivatives 70 % / Commodity 30% ( 0 in equity .. don't have dmat account)
Systems in each - Trend following 50 % / View Based 20% / Options 20%
Exposure maximum - 3 Times (not as per span margin of exchanges)
trend following tools - Simple Price action / Moving Average / Renko Charts
View based - candlestick (price) / Fibonacci (sup /resis), Rsi (momentum) / Bollinger (volatility).
Options tools - RSI / BB / ADX (no open interest / no put call ratio / no greeks )
Max Drawdown on whole capital - 15% .. once hit then exit all positions market ..
Types of Stop loss - Initial Stop / Trailing Stop and Time Stop
Per Trade stop / Per instrument stop ..
Journal Each Trade with detailed reasons ..
Review of journal every 20 trades..
trading break after every 3 months mandatory ..
break after huge winning streak - to avoid overconfidence
break after huge losing streak - to get confidence ..
Approach - Top down -
on weekend - scan all sectors ... then all stocks from derivatives - make list of strong stocks for buy and list of weak stocks for sell -
filter them to max 5 in each ..
trade max 6 positions at any point of time ...
By,
Vishal malkan
The summary of this is trading plan is to educate professional traders which most of them misinterpret in the process making their life miserable and complicate due to lack of discipline, money management and trade management techniques and finally lose even after rigorous research and analysis.
- Trade with a simple plan
These is just a trading plan in general. So one can articulate his/her own plan based on their mentality and suitability accordingly. To successfully trade in any instruments.
- Trade with a simple plan
These is just a trading plan in general. So one can articulate his/her own plan based on their mentality and suitability accordingly. To successfully trade in any instruments.
- Set realistic goals
- know how much max. you are entitled to loose before entering the trade (Risk - Reward)
- Diversify your investments
- Patience
- preservation of your capital
- Doing through analysis and knowing what you are doing
- Never over size your positions - position seizing
- Application of simple tools either techincals or fundamentals
- Assessment/Review of trades/investments
Trade objectively and wisely with the consideration of own risk with amid volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.
Raju V Angadi
Equity Research Analyst
To learn more about investing/trading in financial markets contact us back on rvangadi@googlemail.com or swing.research5@gmail.com or +91 78291 55900
Disclaimer: This is just an view based on the research of individual for educational purpose. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.
No comments:
Post a Comment