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FnO Positional Trade Learning School

From : Jay Kumar at 10:45 AM - Mar 10, 2015 ( )

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 Hello Friends, In this thread I ll try to share about some fact about FnO Positional trading, It will help to choose right FnO stocks for trading. we can minimize the mistakes and can pick right stocks.



From: Jay Kumar at 12:25 PM - Mar 10, 2015( )


Prepare Yourself  First for FnO Trading

All of you know basic of trading that what dont  do and what do so I ll not say more about it. Dont want to make you bore, just saying some one :

  1. Dont trade according your wish, Trade According trend.
  2. Dont Overtrade because you always trade with margin in FnO segment, so 20% loss also can finsh your capital and ll make you out from this market forever and this loss can happen any time with a bad news in market. Be remember , some big profits ll not make you warren buffett but some big loss ll make you out from here.
  3. Dont take trading as a gambeling , TG hit, SL hit again TG hit, SL hit.. Like this way ll make you out from this market.
  4. Earn for yourself, not for broker or operators.
  5. we are small traders, so we should behave like small traders, not like operators.
  6. Dont follow blindly any news trading tips, because they do manipulate  market for their paid subscribers.
  7. Finally, Its your responsablity to save your capital, not others. 

If you want to stay in stock market and earn good from it and finally want to create a good wealth then only one formula is here.

The successful formula is :

Planned Trade + Systematically Investment = Create Wealth

 



From: Jay Kumar at 03:21 PM - Mar 10, 2015( )


 

How to Select Stock for Trading

There are two major Index, Nifty and BankNifty and 145 other stocks listed in NSE FnO segment. We should always trade with only familar stocks because its easy to technical and fundamental analysis with familar stocks. There is no rule by SEBI that we should have trade in all in this stocks Tongue out. So we can choose some good stocks and can again and again trading in them full life. If we trade only with familar stocks then its very easy to understand them and we can easily find there support level and resistent level. 

  1. First stock price range should be 100-2000 rupees. (Ashok Leyland , Dish Tv also good for trading).
  2. Stock should have good volume.  
  3. Always choose good fundamental stock. Its very important in positional trade because we hold it 3-4 days, if we ll choose any stock just because of any news and hold it, then we can trap with it. With news that stock can run 10-15% but very next day it will fell down to previous price then it ll never come back our buy price. So avoid like this stock ( ex: Unitech, GMR Infra etc. )
  4. If we ll choose any strong fundamental stock, and if its fell down from our buy price then it cant stay long time at lower price and a hudge buying ll genrate there because all want to buy fundamental strong stock in there portfolio so we can easily earn profit.
  5. Sector performance is very important in positional trading. Choose Stock from good sectors like Auto , Banking and finacial , Pharma , IT, FMCG, Cement ( Now Pharma sector is good Tongue out)
  6. First of all select some (10-15 stocks) good fundamentaly stocks from good sectors and continous track them. After some time you ll familar with them and can easily find there lower level for buying. We ll use technical analysis also for find entery level. That one I ll describe in next topic. Dont run behind all stocks, because its hard to track them and we can easily trap in it. (I am personaly earning every month 40,000 - 70,000 rupees just by trade in 3 stocks - Axis bank, ICICI and Ashok Leyland).
Process of stock selection :
  • First of all, watch market direction. 
  • After that watch sector performance, which sector is now days running.
  • Then pick some strong stock from our familar stocks for long. For entery Level , we ll use technical analysis.
  • Always keep in mind, Never short Future in positional trade, it can be suscide. If there is any reason for short then can buy PUT .


From: Jay Kumar at 05:50 PM - Mar 11, 2015( )


Technical Analysis for Entery Levels

There are servel indicator and methods, and we all are already know about them. As a trader, you all know about them, know methods also. I ll also tell same method that one you already know. Then what is differnece between what I ll tell and you already known methods ? The answer is "PLAN, DISCIPINE and PATIENCE"We all know this methods and indicators but never implement practically. When at 9:15 am, opening bell of Stock Market ring, many butterflies start to fly in our stocmach and in our mind only one thing, what to buy or what to sell without any plan. All methods, plan, indicators and strategies, what we learnt is no meaning and made position in any stock and now we are watching only screen and start pray from god, please god make it in my direction... Some time ll out from trade with profit and some time with loss. At the End of Month , all proit and loss is equal. So without "PLAN, DISCIPINE and PATIENCE", its really hard to earn profit with Positional Trade.

Intresting Fact : Some traders make position without think and plan in any wrong trade and at the end of day when its in loss then they carry forward it for next day, Next day also is loss because they entered in wrong trade then they carry forward it again and again for next days and finally they have complained that they did positional trade but then also booked loss. Its really funny Laughing.

Some Indicators which one we ll use :

  • Simple Moving Average (20 days, 50 days , 200 days )
  • Support and Resistent trend line
  • Slow Stochastic
  • MACD
  • RSI
  • Candelstich Chart
  • Volume

 

Although, all of the trader know about this indicators, if some one dont know about this one then they can search basic knowlege about this indicators at internet. This is hard to explain about this indicators here. I am also trying to learn from you guys :)

Be remember Magic is not in Strategies, its in "PLAN, DISCIPINE and PATIENCE".



From: Jay Kumar at 08:34 PM - Mar 13, 2015( )


Strategy for find Entry Level for Long or Short Position

We ll use some some indicators for find entery level for long or short position, if we ll keep discipline, then sure it ll work fine.

Long :

  • Slow Stochastic at oversold position with buy mode
  • It should be confirm with either MACD or RSI too
  • It should be at rebounce from support level or break resistence.
  • A Bullish mode candelstick should be occur at daily candelstick chart pattern.
  • Volume should be Increase.

Short :

  • Slow Stochastic at overbought position with sell mode
  • It should be confirm with either MACD or RSI too
  • It should be at reback from resistence level or break support level.
  • A Bearish mode candelstick should be occur at daily candelstick chart pattern.
  • Volume should be Increase.


From: Jay Kumar at 11:33 AM - Mar 14, 2015( )


Chart for testing the Strategy 

Here is the COLPAL one year historical chart for testing the strategy, you can find arrow on it for long or short according strategy, It ll help to you for study. I have placed arrow manually, so arrow could be shift one candel either left or right side, So please adjust and ignore such error as I am also a human and I have also right to do like this error. all others are fine. you can ask your doubt. :)




 



From: Jay Kumar at 06:20 PM - Mar 14, 2015( )


Strategy for find Exit Level for Long or Short Position

Exit from trade is more important than the enter in trade. There is no meaning of good entry in trade, if we can’t exit from it with good profit. 

Long:

  • INITIAL STOP LOSS: It should be slightly lower the Support / Entry level.
  • We ll use trailing Stop Loss strategy.
  • When trade ll starts go in our direction, we start to trail Stop Loss.
  • We ll place Stop loss at slightly below the previous day close / low.
  • When SL ll trigger, we ll book our profit.

Short:

  • INITIAL STOP LOSS: It should be slightly above the Resistent / Entry level.
  • We ll use trailing Stop Loss strategy.
  • When trade ll starts go in our direction, we start to trail Stop Loss.
  • We ll place Stop loss at slightly above the previous day high.
  • When SL ll trigger, we ll book our profit.

Important:

Don’t uses Initial Stop loss, instead of it use PUT / CALL option as a hedging. Some time, its hit our SL and then again start go in our direction. So if we ll have a hedging with PUT / CALL, we no need out from trade due to initial SL hit. When trade start in our direction, then sell this PUT / CALL, which one use for hedging and start to trail Stop Loss Strategy.

I ll describe, this one with an example... hope it ll help you guys.

 



From: Jay Kumar at 08:04 PM - Mar 14, 2015( )


Example with chart of trade with this strategy

In this section, I am just trying to expalin strategy with an example of COLPAL, I already post 1 year historical chart of COLPAL with entery level, I am just taking 2 months chart from it, to explain long and short position trading according to this strategy.

Example : 


Lets we trade with just 2 Lots

Required Capital for 2 lots trade = Rs. 70,000 

Quantity in 2 lots = 2 * 125 = 250

Time frame = 2 months ( July -August )

No. of Trades = 2 

1st Trade (LONG) :

As show in chart, according to our entering strategy, this Long call genrated at 1565, its confirm by other indicators and bullish candelstick. then we ll follow trailing stop loss method and at 1655 it ll booked. ( You can see detail on chart).

Total Profit = 1655- 1565 = 90 Points

Total Profit with 2 Lots = 90 * 250 = 22,500 Rupees.

2nd Trade (SHORT) :

As show in chart, according to our entering strategy, this Short call genrated at 1655, its confirm by other indicators and bearish candelstick. then we ll follow trailing stop loss method and at 1470 it ll booked. ( You can see detail on chart).

Total Profit = 1655 - 1470 = 185 Points

Total Profit with 2 Lots = 185 * 250 = 46,250 Rupees.

So, Total Profit of two trades = 22,500 + 46,250  = 68,750 Rupees.

So, you can see that we can easily earn 68,750 rupees in 2 months (34,375 per month) with just Rs. 70,000 capital. We made only 2 trades with 2 lots only. This is not any dream, its real fact. We applied above discussed strategy for enter and exit. You can self apply this one before belive on it. But with discipline. you can ask your doubts :)

Important :

In this strategy, 1 time out of 5 trades , stop loss will hit. Some time you ll get small profit, some time you ll get good profit and some time you ll get extra ordinary profit. So over all you ll earn a handsome profit.

    SMART TRADERS ALWAYS WIN   




From: Jay Kumar at 09:55 PM - Mar 15, 2015( )


How to systematically create wealth in stock market ?

We all are in stock market for earn profit and create a good wealth. But most of time, we can’t find right way and our capital not grow as like we want or some time its show loss too. This happened because we convert our investment into trading and trading into investment. I am trying to present a realistic way. The way, I am using is the Planned Trade and Systematically Investment.

  • Invest 95% money in good stock as long term investment and keep 5 % money for trading. If we make any loss in trading then can pay from it.
  • Do only trade with Capital and Risk management. Only engage 50 % of your capital at once in trade. So you ll not afraid, if it’s go against you also, its ll not affect you more.
  • What have you earned profit from trade, reinvestment it with your old investment. Don’t use this profit for trading.
  • In this way, your investment ll increase constantly.
  • We ll enjoy compounding on our investment, not on trading.
  • We ll again planned trade with 50 % of our capital. 
  • We ll constantly booked profit in our investment too. Like if our invested share Increase 10-15 % within 3-4 days, then we ll sell 20% quantity this level, If its further increase 5-10 %, the we ll sell 10% more at this level. If it’s go increase more, then don’t worry, we still have 70% stocks in our portfolio. It’s enough.
  • If any stock increase suddenly 15-20 % then its cant stay long there, It ll fell down from that level. Its normal in market. That time we ll buy again share, what we sold before. Booking profit continually is good habit.

 

Let’s take an example for understand it.

 Assume that we have 1 lack rupees capital and we are taking example of Axisbank trading at Rs.500.

 I ll buy 95 thousand rupees axisbank stock in cash market for investment. Bought 190 share at the price of 500and ll keep 5 thousand rupees for trading, If any loss happen then can pay from it.

Now at the first month, I ll trade with 1 lot according above given strategy with engage of near most 50-60 thousand rupees.

If the at the end of month total profit from trading after all loss or profit add is 20,000 (Using figure for easy calculation)

At this month Axis Bank is trading at 550, so I ll buy 37 shares from 20,000 profit.

Next month same, I ll trade with 1 lot according above given strategy with engage of near most 50-60 thousand rupees.

At the end of this month total stock is = 190+37 = 227

At the end of this month my total capital is = 227* 550 = 1,24,850 + 5000 = 1,29,850

 If the at the end of month total profit from trading after all loss or profit add is 20,000 (Using for easy calculation)

At this month Axis Bank is trading at 600 rupees so, I ll buy 33 shares from 20,000 profit.

At the end of this month total stock is = 227 + 33 = 260

At the end of this month my total capital is = 260* 600 = 1, 56,000 + 5000 = 1, 61,000

We ll repeat same process every month, when our capital become double we ll start trade in 2 stocks and then so on.

The successful formula of smart trader is :

Planned Trade + Systematically Investment = Create Wealth

Note: I am using profit or stock value as a example for easy calculation. It’s not real prices. So please don’t ask from me that I provide any chart for it. Real profit can be different from this. All values used in it, just for understand easily.



From: Jay Kumar at 11:31 PM - Mar 15, 2015( )


Journey of Confused Trader and Smart Trader

What do you want to become, Choice is yours -

  Confused Trader or Smart Trader ?  



From: Jay Kumar at 11:33 PM - Mar 15, 2015( )



 Money mouthMoney mouth   Happy Trading   Money mouthMoney mouth 



From: Jay Kumar at 11:49 AM - Mar 24, 2015( )


 Real Example of Positional Trading 

I am writing this one as a example of postional trade. I wrote this thread, So I think, I have come with some real examples for better uderstanding. I just want to show mine old trades here,just as a example of positional trades. I am including only those trades , which I post at mudraa, so I cant use any fake data. You can match this one with my old trades.I did not post any uncountable calls and in last coming with a Excel file that showing 2-3 lack profit in a month after many SL and TG hits. This kind of trade possible only with paper trading, not practically. I want to earn really, I dont have wish to become millionar on Excel sheet by paper trading. In practically, what is possible for small trader (atlest about me) is here :

I am new at mudraa so, I have just post 6 calls here in Feb and March series. You can check same with old trades. I have trade with 2 lot. This is the realistic profit, what a normal retail trader can gain. Any one want to become billionaire on excel sheet with paper trading or want to earn realistic profit as a real trader. Its all about in our hands.

Feb 2015 Syndicate Bank with 2 lot, Profit is                                         =  8,400

Feb 2015 SKS Microfinance with 2 lot, Profit is                                    =  17,150

Feb 2015 Bata India with 2 lot, Profit is                                                 =  2,550

Mar 2015 Aurobindo Pharma with 2 lot, Profit is                                 =  8,500

Mar 2015 Adani Port with 2 lot, Profit is                                               =  18,000

Mar 2015 IDFC with 2 lot, Profit is                                                        =  8,600

 

Totall Profit in 2 months with 2 lots (just 6 trade)                  =   63,200

So, Avg. 1 month profit  = 63,200 / 2 =   Rs. 31,600.

I think Rs. 31,600 profit is more than enough in 1 month with just 2 lot (required less than 1 lack capital) avg. 3 trades only in a month. This all trading without any stress and no need stay full day infront of terminal. Save brokarge , Grow your capital.



From: Jay Kumar at 07:48 PM - Mar 24, 2015( )


Valuable FnO Index and Stocks 

I am posting some Important and valuable index and stocks, that should be in radar of traders. Its rocking stock for postional trade.

Index :

1              Nifty

2              BankNifty

Stocks :

 

1 ADANIENT
2 ADANIPORTS
3 APOLLOTYRE
4 ARVIND
5 ASHOKLEY
6 ASIANPAINT
7 AUROPHARMA
8 AXISBANK
9 COALINDIA
10 COLPAL
11 DISHTV
12 DLF
13 HAVELLS
14 HDIL
15 ICICIBANK
16 IDFC
17 INFY
18 ITC
19 LICHSGFIN
20 POWERGRID
21 PTC
22 RELIANCE
23 SBIN
24 SIEMENS
25 SKSMICRO
26 SUNPHARMA
27 SYNDIBANK
28 TATAMOTORS
29 TATASTEEL
30 VOLTAS
31 YESBANK





In Reply to above Message (1 to 20 out of 206) - Latest Replies are put on Top | First | << Previous | Next >> | Last |

From : Jay Kumar at 11:37 PM - Feb 17, 2017 ( )

Thanks @ KR & Rajesh sir :)


From : Kr Menon at 07:30 PM - Feb 17, 2017 ( )

JKji,

Very good system

KRM


From : Rajesh Thete at 07:17 PM - Feb 17, 2017 ( )

Yes sir, Thanx again for the help...


From : Jay Kumar at 04:11 PM - Feb 17, 2017 ( )

@ Rajesh, Basically I follow stock direction and behavior itself. I keep few stocks on my radar and watch them continuously so can understand their behavior and when to find good point and movement on them, then only take the entry. I prefer fundamental analysis for stock selection and direction selection. I long fundamentally strong stock who is undervalued for example LUPIN. I can long it again and again when it will come to its support level. I also prefer to go with index direction.

I am a Trader. I am not any technical and fundamental analytics. My Prime aim is to make money. So, I am not bothered about complex trading strategies. When getting a high probability trade according to mine trading system, just enter in a trade.

I believe in Peacefully Trading.


From : Rajesh Thete at 03:42 PM - Feb 17, 2017 ( )

Hello sir,

when u entred into any stock for long side or sell side, u consider index direction of that paticular stock?


From : Rajesh Thete at 12:24 PM - Feb 15, 2017 ( )

Thanks sirji


From : Jay Kumar at 01:28 AM - Feb 15, 2017 ( )

@ Rajesh, I follow many trade setups for my personal trading. In fact, Now I am able to talk with charts :) means I can get the idea about chart by seeing it without draw any indicator. If you will start to spend 1-2 hours per day for chart reading then you will also able for same. Just want to share Infy chart with you that following almost same method but slightly more powerful than it.

Kindly note that I took trade in Infy but there were few other reasons also along with this trade setup. I Entered @ 9 Feb and Exit @ 13 Feb. No need to enter when setup become, you can extra analysis too for confirming as this setup is not any Alladin's Gini :). Don't forget to manage your risk by stop loss or hedging.

 



From : Rajesh Thete at 12:37 AM - Feb 15, 2017 ( )

yes sir, base on this method


From : Jay Kumar at 12:50 PM - Feb 14, 2017 ( )

@ Rajesh, which one chart? Based on this method? 


From : Rajesh Thete at 11:29 PM - Feb 13, 2017 ( )

Sir, can u share your recent traded chart?

just for an idea / confirmation


From : Jay Kumar at 06:44 PM - Feb 13, 2017 ( )

@ Rajesh sir, Daily chart is the best time frame for positional trading.  

Happy Trading :)


From : Rajesh Thete at 05:56 PM - Feb 13, 2017 ( )

Which time frame is useful for analysis stock for positinal trading?


From : Jay Kumar at 06:06 PM - Oct 23, 2015 ( )

GooD evening vik sir,

hope soon you will get great profit :)

You trade in cruid oil only or all commodities??


From : Jay Kumar at 05:59 PM - Oct 23, 2015 ( )

Tnx rahul sir :)


From : Vik M at 12:27 PM - Oct 23, 2015 ( )

Afternoon Jay,

Thats good to know, our best wishes always there with you bro. And thanks for quoting calls would keep trickling. Comoddity trades are going fine not that great ... some am positive things will fall on track soon... keep writing :)

=============================

From : Jay Kumar at 09:36 AM - Oct 22, 2015 a day ago )

Hi vik,

 how r u ? how is going life ? New  endeavor progressing is fine, all is your good wishes :) Tnx for ur kind words :)

I ll try my best to provde good calls in future also ... but once again tnx for your kind support :)

How is going your commodity trading, hopefully ur on right path to acheive your target :)


From : Rahul Nayak at 12:14 PM - Oct 23, 2015 ( )

good


From : Jay Kumar at 09:36 AM - Oct 22, 2015 ( )

Hi vik,

 how r u ? how is going life ? New  endeavor progressing is fine, all is your good wishes :) Tnx for ur kind words :)

I ll try my best to provde good calls in future also ... but once again tnx for your kind support :)

How is going your commodity trading, hopefully ur on right path to acheive your target :)


From : Vik M at 01:23 PM - Oct 20, 2015 ( )

Afternoon Jay,

Howz the new endeavor progressing? When I see a comment on your thread I go back and read from the beginning - refresher exercise :) Miss you trade calls 


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