Support and Resitance

A ROAD MAP FOR BEGINNER TRADER FROM ZERO (0)

· Open demat account in india’s best (Demat Account.)

· Start learning: Candles stick behaviour.

· How to draw: support and resistance.

· How to draw: trendline.

· About chart: pattern.

· Learn price action: movement of price.

· Start virtual trading: paper trading, front page or any other apps.

· Find market trend: bullish, bearish sideways.

· Fix entry and target.

· Fix stoploss.

· Learn about: psychology and mindset.

BASIC OF STOCK MARKET

OPENING TIME 9:15 to 3:30

HOLIDAY: SATURDAY AND SUNDAY AND ANY (GOVT. HOLIDAY)

INDICES :

1. NIFTY : 50 COMPANIES.

2. BANK NIFTY : 12 BANKS.

3. SENSEX : 30 COMPANIES.

LISTED ON

NSE (National Stock Exchange).
BSE (Bombay Stock Exchange).

IMPORTANT APPLICATIONS/WEBSITES FOR STOCK MARKET

Trading view : for chart analysis.
Nse website : option chain.
Opstra option analysis : help in Interest.
Investing. Com : for globle market.
Investing. Com : for globle market.
Money control : for stock market news.
Chartink : stock scanner.
Small case : stock portfolio.
Cnbc : for market news.
Ind money : us market stocks.

SOME RULES FOR OPTION TRADING

9:15 to 9:30 avoid trade (specially for beginners). Reason : high volatility or profit booking chances for BTST trader.
9:30 to 12:00 : first half (volatility)
12:00 to 1:30 : avoid this time ( sideways & premium decay)
1:30 to 3:30 : second half.
Stay smart at this time : (sideways & premium decay).
3 pm candle (special movement) for profit booking.
Global sentiment keep in mind.
Don’t trade “against trend” (trend is your friend).
If market is in “ uptrend ” respect the support or think about pullback at EMA 20.
If market is in “downtrend” respect the resistance.
Always keep in mind: don’t try to time the market like: market go down now or market go up now.
Always stoploss any time.
Don’t loss too much on single trade. Respect / follow money, management and risk management.

Tredline and Resistance

Trading Strategy What is the trend ?

A.) Market Bullish :

Traders and investors in the stock market have two types of thinking. One type supports the bullish market and wants to earn profit by selling their stocks when the prices rise. In the language of the stock market, they are called bulls. If the price reaches support in a bullish market, then buy. And keep the target until resistance.

B.) Market Bearish :

Opposite to bulls, the second group in the stock market consists of those traders or investors who wait to buy high-priced stocks when their prices fall, so that they can sell them for a profit when the prices rise. Therefore, they prefer a declining market. They are referred to as bears or bearish traders. In a bearish market, buy when the price reaches the resistance and keep the target until support.

C.) Sideways Market :

When the number of people wanting to buy stocks is almost balanced with those wanting to sell, a sideways market comes into play. Because these forces are equal, prices remain relatively stable, resulting in a consolidation period where no clear trend is visible. This period can eventually lead to a new upward or downward trend, or it can also continue the previous trend. If a breakout in a sideways market, then buy or sell.

I am disciplined Trader Rules not to be broken :

Fix your number of trades. (2-3 maximum).
Fix your loss limit for days (2-3 % per day). If limit reached to your loss limit. Closed the system.
On index expiry : reduce your quantity. If beginner try to avoid that expiry or trade on next expiry.
if you booked profit in first half then avoid overtrading.
if you booked loss in first half, then try not to cover on that day otherwise loss may be big. Which you can not afford.
6. Cut your losses and try to hold.

1. RULES FOR INTRADAY TRADING

Time Market Behaviour

09:15 - 9:30 = highly volatile / profit booking Candle

09:30 - 11:30 = first half (big movement)

11:30 - 02:00 = market sideways / SL hunting

02:00 - 03:05 = big movement expectations

03:05 - 03:30 = market closing decide

New players avoid 9:15 to 9:25 it is very fast movement.
Avoid full day, trading choose only first and second half. (2-3 trades only)
11:30 to 2:00, market mostly times sideways (expectation trending market once in a month)
At 2:20/2:45/3:00, profit booking or big candles can be seen.

EXPIRY SPECIAL RULES

A.) Trade position : Quantity keep less.
B.) Avoid overtrading, otherwise the profit of the whole day will be lost.
C.) After the breakout, also look at the volume, otherwise you could get trapped.
D.) Never try to do Avarage.
E.) Please check multiple conformation before entering in to trade.
F.) Check Direction both index Nifty 50 & Banknifty,
G.) Please check nifty 50 & banknifty components. Specially, Reliance, HDFC, ICICI
H.) 3 pm Candle Stay smart (people square off the position.
I.) Try to avoid Hero-Zero (specially beginners)

9 EMA STRATEGY WITH PRICE ACTION

Strict Rules to Be Following.

a.) Use indicator Exponential Moving Average (EMA 9).
b.) EMA should be break above or below and wait for retest.
c.) Retest candle should be rejection candle or contain wick / shadow. (Full body avoids trade).
d.) Time Frame - 5 minutes, and 15 minutes (big target).
e.) Risk Reward Ratio, 1:2/1:3/1:4
f.) Conformation candle should be (Red) in downtrend.
g.) Conformation candle should be (Green) in Uptrend.
h.) Do not work in consolidate area / sideways market.
i.) Good ROI in Trending market (no overtrading).
j.) Avoid at psychological no. (20000, 21000, 22000, 23000, 24000, 25000 and 50000, 51000, 52000, 53000, 54000, 55000).

BEST OF LUCK

        a.) Check your important levels (important support and resistance) market always respect             support and resistance.
            b.) Always check volume at the time of entry or when there any breakout and breakdown.
          c.) Always check open interest at entry time.
            d.) Always trade with trend.
          e.) Candle size and body,
for Example : Bullish Breakout Green Candle do not contain any wick/ shadow.

LOSS RECOVERY PLAN RULES :

A.) Only 2 trade per day.
B.) Only 1-2 Strategy / Setup.
C.) Trade only Nifty 50 index.
D.) Stoploss should be small maximum 15 points.
E.) Target should be big atleast 1:2 / 1:3 / RR.
F.) Focus on Breakout trading.
G.) Avoid scalping.
H.) Work on demand and supply zone.
I.) Slow and study recovers it.

SWING TRADING STRATEGY OR INTRADAY STOCKS STRATEGY.

· Favorable Conditions:

A.) Time frame should be 1day / 1 Hour / 4 hour.
B.) Volume should be High.
C.) Stock should above 50 EMA and 200 EMA.
D.) For F & O in stocks you have to use limit order for buy and sell, because of liquidity issues.
E.) Stock expiry is monthly expiry not weekly expiry.

· Disclaimer

· Investment in securities market are subject to market risks, read all the related documents carefully before investing.

I am not SEBI registered . No Call Tip here . All levels are only to teach you in live market and for learning and educational purpose. Learning is the only key to get success.Please consult your financial Advisor before taking any trade or investment.

STEP BY STEP GUIDE HOW TO LEARN TRADING

Support and Resitance

A ROAD MAP FOR BEGINNER TRADER FROM ZERO (0)

BASIC OF STOCK MARKET

OPENING TIME 9:15 to 3:30

IMPORTANT APPLICATIONS/WEBSITES FOR STOCK MARKET