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Market Secrets

How I Think While Trading

© JYOTI BANSAL

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This Book Contains Exclusive Content And Is Not For Sale

All Rights Reserved © Jyoti Bansal.


1st Edition: February 2019

No part of this book may be copied, retransmitted, reposted,


duplicated, or otherwise used without the express written approval of
the author, except by reviewers who may quote brief excerpts in
connection with a review. Any unauthorized copying, reproduction,
translation, or distribution of any part of this material without
permission by the author is prohibited and against the law.

Disclaimer and Terms of Use: No information contained in this book should be


considered as Professional advice. Your reliance upon information and content obtained by
you at or through this publication is solely at your own risk. Authors assume no liability or
responsibility for damage or injury to you, other persons, or property arising from any use
of any product, information, idea, or instruction contained in the content or services
provided to you through this book. Reliance upon information contained in this material is
solely at the reader's own risk. The authors have no financial interest in and receive no
compensation from manufacturers of products or websites mentioned in this book.

~ JYOTI BANSAL

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Acknowledgments

Several Individuals have made this book possible.


I would like to first express my sincere thanks to almighty God, who
bestowed upon me thought and wisdom to write this book.
I thank all my Family & Friends for their always coming
encouragement, guidance, inspiration, love and support which made
me able to achieve everything that I have got in my life.

A Sincere thanks to whole JyotiBansalAnalysis Team, for their


marvellous efforts and dedicated hard work.
At last a special thanks to My Students all over the world, who keep
admiring my work and gives me all the energy and enthusiasm to
create more awesome content.

~ JYOTI BANSAL

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Table of Content:
1. The First Trade - Walchand Nagar Ind...……….…….…....6
2. The Second Trade - Hathway Cable ……...…….….……..10
3. The Third Trade - Bombay Burmah …..……………….....12
4. The Fourth Trade - ICICI Prudential .………………….....15
5. The Fifth Trade - Facebook Inc. …...…..............................19
6. The Sixth Trade – General Motors…..……………………21
7. The Seventh Trade - Tejas Network...………………….…23
8. The Eighth Trade - Tejas Network...………………..….…26
9. The Ninth Trade - McDowell…………………………..…28
10. The Tenth Trade - McDowell…………………………..…32
11. The Eleventh Trade - Mastek…………………………..…33
12. The Twelfth Trade – Apple Inc.…..…………………..…36
13. The Thirteenth Trade - Facebook Inc. …............................39
14. The Fourteenth Trade – Jindal Saw….…............................41
15. The Fifteenth Trade – Deepak Fertilizers Saw…................44
16. The Sixteenth Trade – Yes Bank....…………………..….48
17. The Seventeenth Trade - Facebook Inc...…........................50
18. The Eighteenth Trade - Facebook Inc. …...........................52
19. The Nineteenth Trade – Apple Inc.…..……………….…53
20. The Twentieth Trade – VALE …..…..…...…………….…55
21. Bonus: The Last Trade ……….…………………………..57

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Before You Read This Book…
Jai Shree Krishna,

Before I start talking about my story, I want to clear one


thing… This book is not a “How to Guide!”

Since 2017, I have been creating many Internationally Best


Selling Training Programs and Courses on Stock Market and
Technical Analysis. But every single person I mentored always
asked that how do you apply this knowledge in Real Life
Scenarios?

It’s so frustrating to hear this thing again and again. Stock


Market work on Emotions… When you understand how to
trade these emotions, you make money.

To Prove this thing, I recorded each and every trade I made


for 3 consistent days, and I don’t know if you can believe this
or not but I generated 18%+ Return without considering any
leverage…

100%+ when you count leverage too!


This Book is a complete study of those 3 days.

What I was thinking, how I was thinking, why I took that trade,
why I didn’t take that trade, why was Stop-Loss set to that
level, why I closed the position in middle and all such
questions which you get while you sit in front of the market
with real money.

If you feel you don’t know the basics of Technical Analysis...


This book is not for you, instead, I would recommend checking
some of my programs on jyotibansalanalysis.com before
reading this book.

So are you ready to explore...


How I Generated 18%+ Return In 3 Days?

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The First Trade…
Stock- Walchand Nagar Ind.
Sold 5000 Shares at ₹ 100.60
Trade Value = ₹ 5,03,000
Margin Money = ₹ 1,00,600
Bought Back 4000 Shares at ₹ 99.10
Bought Back 1000 Shares at ₹ 98.05
Profit = ₹ 8,550
Return without leverage = 1.7%
Return considering leverage = 8.49%

So let's start with my first trade. It was 23rd of January and I traded
four stocks on that day. The first stock that I got in my momentum
scanner was Walchand Nagar Industries.

Relative volume was high so there was some news about the
stock but I don't bother about the news because the volume is
high means a confirm news and the stock is volatile. So
without wasting time first of all I analyzed the higher time frame
chart very quickly and if I found that the stock was good for
intraday… then I made my position accordingly.

The stock opened 3.5% gap up at ₹ 104. The chart was clear and
the stock was in a downtrend on 15-minute time frame. On 15-

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minute time frame, 98.50 was a strong support level so I decided to
go for a short position in Walchand Nagar Ind.
When we trade gaps we should always analyze the price action
Near VWAP level. So it was a VWAP trade as I discussed in my
Training Courses on JyotiBansalAnalysis.

At 9:40 a.m. I entered in a short position in the stock at ₹ 100.60


when it was below VWAP and I put my stop slightly above VWAP
level. My profit target was ₹ 98.15.

The opening candle was a long red candle. It means bears have
controlled the price. I was expecting a fall in price. After half an hour
stock was down and it was trading at 1:2 R: R approximately. Then
I bought 4000 shares from my sold position at ₹ 99.10 and moved
my stop loss at the break-even level where I initiated the trade.

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In day trading when we are in profit we must book a part of it
and move our stop loss to the breakeven level because day
trading means we are trading a volatile market and will never
know when the move may get the opposite direction.

When it was a 1:3 R: R approximately, I shifted my stop loss level to


lower high of the move.

I exited with my rest of the position at 12:20 p.m. because Bollinger-


Band was moving sideways and there was no volatility in the
market. The stock was trading at ₹ 99.05 near the support level

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and then for the whole day, stock traded near that level. So it was a
profit of ₹ 8450 in Walchand Nagar Ind.

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The Second Trade…
Stock- Hathway Cable.
Bought 10,000 Shares at ₹ 31.65
Trade Value = ₹ 3,16,500
Margin Money = ₹ 63,300
Bought Back 10,000 Shares at ₹ 31.65
No Profit No Loss

On the same day, my second stock of morning session was


Hathway Cable. The stock opened gap up by 2.59 % so I watched
the price action of the stock near VWAP level. The opening price
was ₹ 31.80 and the price of ₹ 31.70 was a strong support level on
15-minute chart.

After one hour, the stock was trading below support level and also it
was below VWAP. So at 10:20 a.m. I entered in a short position in
Hathway and my entry level was ₹ 31.65. But it was not a good
trade. The stock was range-bound till afternoon.

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I exited from my position at the same level and for the whole day,
the stock was trading at the same level. The trade was at par, it
means the trade was in no profit no loss.

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The Third Trade…
Stock- Bombay Burmah (BBTC)
Sold 500 Shares at ₹ 1281.05
Trade Value = ₹ 6,40,525
Margin Money = ₹ 1,28,105
Bought Back 400 Shares at ₹ 1263.26
Bought Back 100 Shares at ₹ 1257.95
Profit = ₹ 9,430
Return without leverage = 1.47%
Return considering leverage = 7.36%

The other two stocks that I traded were Momentum stocks. My third
stock was Bombay Burmah (BBTC) that I got in my Momentum
scanner.

BBTC opened gap up and gave a momentum move. After a bullish


move of 30 rupees from 1257 to 1287, there was a reversal candle
and it was a bearish candle. I quickly switched to 15-minute chart.

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On 15-minute time frame chart, 1282 level was a strong resistance
level. So I decided to fade the stock.
I made a short position in the stock at 1281.05 level. I placed the
stop slightly above the high of the reversal candle and I placed my
profit target at 20 EMA.

It was a sharp reversal and in just 10 minutes the stock was ₹ 27


down. I scaled out my trade in which I bought 400 shares out of 500
sold shares and shifted the stop loss level to the break-even point.

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In around one hour my profit target was hit at 1257.95 and the trade
was in a profit of which was 1:2.5 R: R approximately. However, the
stock made a down move up to ₹ 1208 during the whole day.

When a stock is already moving in a trend since last 9 to 10


days then we should go with the trend and trade in the same
direction of the existing trend. The stock was in a downtrend
on 15-minute chart so at a strong resistance level I was bearish
about the move and I entered in a short position.

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The Fourth Trade…
Stock- ICICI Prudential.
Bought 2000 Shares at ₹ 306
Trade Value = ₹ 6,12,,000
Margin Money = ₹ 1,22,400
Sold 1000 Shares at ₹ 310
Sold 500 Shares at ₹ 311.25
Sold 500 Shares at ₹ 310.45
Profit = ₹ 8,850
Return without leverage = 1.45%
Return considering leverage = 7.23%

The fourth stock that I got in my Momentum scanner was ICICI


Prudential.

The stock opened 10.43% gap down at ₹ 330 and it was trading at ₹
300 near 11 a.m. On 15 minute chart, 302.40 was a strong support
level so I decided to go long in ICICI Pru. and it was a reversal
trade.

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After a reversal candle, I bought 2000 shares of ICICI at ₹ 306. My
stop loss level was at 299 slightly below the support level and my
target level was ₹ 316. It was 1:1 R: R because sentiment was
bearish for the stock.

When I was getting a profit of 8000 rupees I sold 1000 shares which
was half of my position and shifted my stop loss level at the low of
the reversal candle.

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At 311.25 level, I sold 500 more shares from the rest position and
shifted my stop loss to a break-even level. It is very necessary to
take partial profits when you trade reversals because you are
trading in the opposite direction of the trend. So at every profit
level, I scaled out my trade in which I partially exited from my
position and shifted my stop loss.

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When it was a reversal candle at VWAP level and price again
started to move downward, I exited from my rest of the position at
₹ 310.45 because a sharp down move was possible as candles
were resisting the VWAP level.

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The Fifth Trade…
Stock- Facebook Inc.
Sold 200 Shares at $146.43
Trade Value = $29,286
Margin Money = $5,857
Bought Back 200 Shares at $144.54
Profit = $378
Return without leverage = 1.3%
Return considering leverage = 6.45%

In the evening session, I traded two stocks from the US market from
9 p.m. to 11 p.m. For both the stocks I was bearish about the move.

In Facebook Inc. I made a short position when the stock was trading
below resistance level and it was a Head and Shoulder pattern
formation on the hourly chart. So I was bearish about the move.

I sold 200 shares of FB at $146.43. The stop loss was the high of
the candle before the EMA crossover. 5 period EMA was below 10
periods EMA. I placed the profit target at 1:2 R: R. After first pull
back, I shifted my stop at a breakeven level.

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Then it was a symmetrical triangle pattern on the chart and the
breakout candle was a long red candle. I just exited with my position
at $144.54 because I wanted to sleep :)

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The Sixth Trade…
Stock- General Motors.
Sold 1,000 Shares at $38.14
Trade Value = $38,140
Margin Money = $7,628
Bought Back 1000 Shares at $37.67
Profit = $470
Return without leverage = 1.23%
Return considering leverage = 6.16%

My second stock from US market was General Motors. In General


Motors, $38.30 was the strong resistance zone on the hourly chart
so I was expecting a retracement in the stock from that level.

I placed my stop slightly above the resistance level and made a


short position at the bearish EMA crossover. Again my target level
was at 1:2 R: R.

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At 1:1 profit, I shifted my stop loss at a breakeven level. In General
Motors, I didn't closed the trade because I was going to sleep and
my stop was already shifted to the break-even level. The main trend
of the stock was downtrend and I was sure about the fall. My target
got hit at $37.67. It was a support level and prices were range-
bound here after the sharp down move.

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The Seventh Trade…
Stock- Tejas network.
Sold 2000 Shares at ₹ 192.20
Trade Value = ₹ 3,84,400
Margin Money = ₹ 76,880
Bought Back 1000 Shares at ₹ 186.25
Bought Back 1000 Shares at ₹ 192.20
Profit = ₹ 5,950
Return without leverage = 1.55%
Return considering leverage = 7.73%

The next day on 24 January, there were only two stocks in my


Momentum scanner- Tejas Networks and Thirumal chemicals.

I choose the Tejas network. On 15 minute chart, 197.70 was acting


as a resistance level. After 15 minutes of the opening when the
price was resisting the VWAP level, I decided to go short at 192.20
level. I placed the stop loss level above VWAP and near the
resistance level. I set my profit target at 1:1 R: R.

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The next candle was a long red candle and it was a profit of 1:1.5
I exited from half of my position at ₹ 186.25 and shifted my stop loss
to a break-even level.

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Then stock gave a sharp recovery and my stop loss was hit.

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The Eighth Trade…
Stock- Tejas network.
Sold 2000 Shares at ₹ 196.30
Trade Value = ₹ 3,92,600
Margin Money = ₹ 78,520
Bought Back 1000 Shares at ₹ 190.15
Bought Back 1000 Shares at ₹ 190.05
Profit = ₹ 12,400
Return without leverage = 3.16%
Return considering leverage = 15.8%

When the price was trading near the resistance level, I again made
a short sell position because Momentum was very high and I was
again expecting a down move in the stock. This time, I place my
stop loss slightly above the resistance level. My profit target was the
close of the lowest candle.

In just 10 minutes, after two candles it was a profit of ₹ 12000


approximately. At 1:1.5 R: R, I shifted my stop loss to the breakeven
level and I exited from half of my position at ₹ 190.15.

In day trading, sometimes we have to take very quick decisions


within a few minutes or even in seconds after all day trading is
not an easy job. By the way you should check my training
programs at JyotiBansalAnalysis once…

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At 190.05, I closed my position because RSI was giving a positive
divergence and candles were very short. It means the bearish move
was losing the momentum.

When a move is losing its Momentum, it doesn't mean that it


will always move in the opposite direction. But we can see a
consolidation here that's why I exited from my position.

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The Ninth Trade…
Stock- McDowell (United Spirits)
Sold 1000 Shares at ₹ 583.03
Trade Value = ₹ 5,83,030
Margin Money = ₹ 11,6,606
Bought Back 500 Shares at ₹ 577
Bought Back 500 Shares at ₹ 577.55
Profit = ₹ 5,755
Return without leverage = 0.99%
Return considering leverage = 4.93%

On the same day, my second stock was McDowell (United Spirits).

The stock opened gap up. The first candle was a very long bearish
candle and then stock recovered from the low to the high of the day
in just half an hour. Volatility was high in the stock. EMA set was
giving a bearish crossover.

As the range of Bollinger Band was big so I decided to go short as


per signals. I made a short position when the price was trading
below the VWAP level. I placed the stop at the high of the red
candle that was before the moving average crossover and my profit
target was the lower band of Bollinger Band.

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When I was in a profit of approximately ₹ 6000, I exited from half of
my position and moved my stop loss to the break-even point.

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After a pullback, again the price was trading at the same level and I
exited from my rest position at ₹ 77.55 because this level was acting
as a support level for intraday and price was very close to the lower
band of Bollinger Band.

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The Tenth Trade…
Stock- McDowell (United Spirits)
Sold 1000 Shares at ₹ 580.50
Trade Value = ₹ 5,80,500
Margin Money = ₹ 11,6,100
Bought Back 500 Shares at ₹ 582.90
Bought Back 500 Shares at ₹ 580.50
Profit = ₹ 1,200
Return without leverage = 0.2%
Return considering leverage = 1.03%

Then it was a sideways movement and Bollinger band was


contracting. At 12.45 p.m. I got a buy signal in the same stock.
Bollinger band was expanding, 5 EMA was above 10 EMA. This
time I made a buy position at ₹ 580.50. Again my stop loss level
was low of the green candle before the EMA crossover. When I got
1:1 profit, I shifted my stop to break-even level and sold my half
position at ₹ 582.90.

Now it was a Bull flag pattern on the chart and ultimately my stop
loss was hit because price never crossed above that Bull flag in
upside in the whole day. Then price took support on the previous
support level and remained range bound.

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So I traded McDowell two times, both in short and long side and
both the trades were in profit. In a highly volatile condition, you
can trade in both the sides and that is the big advantage of day
trading.

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The Eleventh Trade…
Stock- Mastek
Sold 1000 Shares at ₹ 443
Trade Value = ₹ 4,43,000
Margin Money = ₹ 88,600
Bought Back 500 Shares at ₹ 434.90
Bought Back 500 Shares at ₹ 434.15
Profit = ₹ 8,475
Return without leverage = 1.9%
Return considering leverage = 9.56%

My third stock was Mastek. The stock was can in the momentum
scanner but I traded it as a reversal.

The stock was in a downtrend on 15-minute chart and 452.85 level


was acting as a strong resistance level.

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On 15-minute time frame after a parabolic move, stock retraced up
to 5 EMA and then there was a hanging man candle near the
resistance level. RSI was giving a negative divergence and stock
traded at the same level for 25 minutes. So I made a short position
in Mastek. I placed stop at the high of the highest candle and my
profit target was at 1:1.5 R: R.

After 1:1 profit, I shifted the stop loss to the breakeven level and I
bought 500 stocks from 1000 sold stocks. As I told earlier that we
should be very careful while we trade reversals. RSI was still giving
a negative divergence.

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Then it was a range bound movement and Bollinger band was going
sideways. I exited from my position at ₹ 434.15 when the price was
trading at the lower band of Bollinger Band and it was also a VWAP
level.

In intraday trading, we can make a profit in a volatile market


and when the market is range bound we should exit from our
position.

In the last hour of the trading session, again there was volatility in
the prices. The stock gave a sharp down move and closed at ₹ 419.
I hardly trade stocks in the second half session of the market,
mostly I trade in first-half session.

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The Twelfth Trade…
Stock- Apple Inc.
Sold 200 Shares at $153.04
Trade Value = $38,608
Margin Money = $6122
Bought Back 100 Shares at $152.32
Bought Back 100 Shares at $151.89
Profit = $187
Return without leverage = 0.61%
Return considering leverage = 3.05%

On 24th January I traded two stocks from the US market.


In Apple Inc. price was trading below the uptrend line and there was
a shooting star candle on the hourly chart. So I was bearish about
the move.

$153.37 was a strong resistance level for the prices. I sold 200
shares at $153.04 when the price was trading below the resistance
level and EMA set was already giving a bearish signal. My stop was
above the resistance level and the target was at 1:2.5 R: R.

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At 1:1 profit, I bought 100 shares and move my stop to a break-even
level. I drew a bearish parallel channel and I was expecting a fall up
to the lower level of that parallel channel.

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At $151.89, I closed my position because the candle was a long red
candle and it was trading very near to the support level.

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The Thirteenth Trade…
Trade #13
Stock- Facebook Inc.
Sold 200 Shares at $145.53
Trade Value = $29,106
Margin Money = $5,821
Bought Back 100 Shares at $144.14
Bought Back 100 Shares at $143.44
Profit = $348
Return without leverage = 1.2%
Return considering leverage = 5.98%

My second stock was Facebook Incorporation. I was still bearish for


Facebook because of Head and Shoulder pattern on the hourly
chart. So I sold 200 shares at $143.53 when the price was going
downwards after touching the downtrend line on 5-minute chart. RSI
was also giving a negative divergence. I placed my stop at the high
of the highest candle.

It was a very sharp down move and the next 5-minute candle was a
long red candle. So I bought 100 shares at $144.14 and the next
two candles were also long bearish candles.

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So I closed my position at $143.44 because it was a sharp move
and price was trading near my target level. In an extended move,
after three consecutive long candles, a pullback is always
expected in the move but it should not be initial move. I told
this thing in my Training Courses at JyotiBansalAnalysis too.

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The Fourteenth Trade…
Stock- Jindal Saw
Sold 5000 Shares at ₹ 81.15
Trade Value = ₹ 4,05,750
Margin Money = ₹ 81,150
Bought Back 5000 Shares at ₹ 80.00
Profit = ₹ 5,750
Return without leverage = 1.42%
Return considering leverage = 7.08%

On 25th January, I traded three stocks from the Indian market.


There were three stocks in my momentum scanner- Jindal Saw,
Deepak Fertilizers, and Yes Bank.

My first trade was Jindal Saw. The stock opened gap up and first 5
candles were the bearish candles. It was a VWAP trade. VW AP
level was acting as a resistance level and when there was a candle
below VWAP, I made a short position in the stock. I place my stop
slightly above VWAP level and when it was about 1:2 profit, I shifted
my stop loss to the breakeven level. My target level was ₹ 80.

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Then it was a range bound movement in the stock as Bollinger band
was contracting. I didn't close my position because profit was very
low so I decided to wait because I already shifted my stop loss at a
breakeven level.

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At 12.35 p.m. my target was hit at ₹ 80. Then it was a strong down
move in the prices. There were two flat bottom pattern and one bear
flag pattern on the chart but as I told earlier I don't trade in the
second half session so I didn't track the stock after 12:30 p.m.

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The Fifteenth Trade…
Stock- Deepak Fertilizers
Sold 5000 Shares at ₹ 118.25
Trade Value = ₹ 5,91,250
Margin Money = ₹ 1,18,250
Bought Back 2500 Shares at ₹ 115.90
Bought Back 1200 Shares at ₹ 115.85
Bought Back 1300 Shares at ₹ 114.15
Profit = ₹ 14,085
Return without leverage = 2.4%
Return considering leverage = 11.91%

Deepak Fertilizers was trading at ₹ 115.45. It was a bullish


momentum move in the stock. There was a flat top pattern in the
stock and it was losing momentum when I found the stock in my
momentum scanner. All these strategies I have already explained in
my day trading course.

On 15 minute chart, the stock was moving in a strong downtrend but


it was a sharp pullback due to some news and it was a very long
green candle on the hourly chart.

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After 2nd flat top Breakout, when there were three consecutive
green candles and they were also losing momentum then I decided
to go short in Deepak Fertilizers. It was a very risky trade but I was
bearish about the next move because of four reasons:

1. The stock was in a strong downtrend on 15-minute chart.


2. There was three bullish moves in the stock and after three
consecutive moves, I was expecting a consolidation in the prices.
3. Candles were losing momentum.
4. RSI was giving a negative divergence.

I made a short position at ₹ 118.25 and placed my stop at ₹ 119.50


because there could be one more short candle. I placed the profit
target at 1:3 R: R.

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When it was a 1:2 profit, I shifted my stop loss to break even level
and exited from half of my position at 115.90 level.

The next candle was the hammer candle and it was taking support
at 20 EMA so I bought 1200 shares at 115.85 level.
De331

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Within half an hour, the stock was down up to ₹ 114.15 and my
target was hit.

At the end of the session, the stock was closed at ₹ 111.75.

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The Sixteenth Trade…
Stock- Yes Bank
Bought 1000 Shares at ₹ 227.10
Trade Value = ₹ 2,27,100
Margin Money = ₹ 45,420
Sold 1000 Shares at ₹ 225.80
Loss = ₹ 1,300
Return without leverage = -0.6%
Return considering leverage = -2.86%

My third stock was Yes Bank. It was 7% up and making a bull flag
pattern so I decided to go long in Yes Bank at ₹ 227.10.

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But then it was a range bound movement in the stock. I closed my
trade at 225.80 level and booked a little loss in the trade because, in
range-bound movement, I never hold my position. I like to trade in
volatile markets only.

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The Seventeenth Trade…
Stock- Facebook Inc.
Sold 200 Shares at $148.54
Trade Value = $29,708
Margin Money = $5,942
Bought Back 200 Shares at $148.85
Loss = $62
Return without leverage = -0.2%
Return considering leverage = -1.04%

In the evening session on 25 January, I traded three stocks from US


market.

First stock was Facebook Incorporation. On the hourly chart, it was


trading near upper band of Bollinger band. So I was expecting a
retracement in the stock up to 146.45 level because that was a
strong support level. So I made a short position in the stock.

My stop was the upper band of Bollinger Band and target level was
near the support level.

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But my stop loss was hit and it was a loss in short position in
Facebook Inc. It means the bullish momentum was high.

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The Eighteenth Trade…
Trade #18
Stock- Facebook Inc.
Bought 200 Shares at $148.98
Sold 200 Shares at $148.98
No Profit No Loss

So immediately I entered in a long position at 148.98 level.


Sometimes we have to take decisions within seconds in day
trading when momentum is very high.

After two long candles, I shifted my stop loss to breakeven level but
again my stop loss was hit in FB. I traded Facebook two times on 25
January but I was in a little loss in that stock. But the loss was only
$44.

This is the advantage of initiating a stop at each trade and this


is also the secret of most successful day traders. When our
trade goes wrong, our loss is less but if the trade goes in the
right direction, profit is quite big. It goes without saying that I
already explained all these concepts with Live Demonstrations
in my Training Courses at JyotiBansalAnalysis.

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The Nineteenth Trade…
Stock- Apple Inc.
Sold 200 Shares at $157.03
Trade Value = $31,406
Margin Money = $6,281
Bought Back 100 Shares at $156.40
Bought Back 100 Shares at $156.99
Profit = $67
Return without leverage = 0.2%
Return considering leverage = 1.08%

My second stock was Apple Incorporation. It was opened gap up.


On the hourly chart, the candle was outside the Bollinger band and
it was trading very near to the uptrend line so I was bearish about
the move on 5-minute chart because a candle outside the
Bollinger band is a signal of pullback.

I placed the stop loss order at the recent high.

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Now Bollinger band was contracting so it could be range bound
movement in the stock. Price was trading near the lower band of
Bollinger Band so I exited from half of my position at $156.40 and
moved my stop to the break-even level.

The next candle was a bullish candle and it was near the VWAP
level so after 10 minutes my stop loss was hit. In this trade, my half
position was in profit and rest half was closed at par. I was thinking
that it is not a good day for my trades. Then I found a stock in my
momentum scanner and it was VALE.

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The Twentieth Trade…
Stock- VALE
Sold 2000 Shares at $13.67
Trade Value = $27,340
Margin Money = $5,468
Bought Back 1000 Shares at $13.48
Bought Back 1000 Shares at $13.39
Profit = $470
Return without leverage = 1.7%
Return considering leverage = 8.59%

VALE was 7.60% down. The momentum was very high in the stock.
There was a bear flag pattern and when it was a flat bottom
breakout on 5-minute chart I entered in a short position because the
volume was high at the Breakout candle.

I placed the stop at the high of the Breakout candle. $13.47 was
strong support at 15-minute chart so I was expecting a down move
at least up to that level. I placed my profit target near this level.

Jyoti Bansal Analysis Page 55 of 58


When the stock was trading near the support level, I bought 1000
shares and moved my stop to breakeven point.

But it was a very long red candle and the last three candles were
giving a parabolic move so I immediately exited from my short
position at $13.39.

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Bonus: The Last Trade…
Stock- VALE
Sold 1000 Shares at $13.03
Trade Value = $13,030
Margin Money = $2,606
Sold 1000 Shares at $13.48
Bought Back 1000 Shares at $13.38
Profit = $350
Return without leverage = 2.7%
Return considering leverage = 13.43%

Then I immediately entered into a long position to trade the


pullback.

Parabolic moves are the riskiest trades but they are also the
highly profitable trades. I placed my stop below the low of the third
candle and my target was the previous support level that was acting
as a resistance level now.

When the stock was trading near my target level, I exited from the
trade at $13.38.

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So in this stock, I traded the parabolic move in both the directions
and that's why I like this move very much. Though to trade this
move in opposite direction is always risky but if my stop loss would
get hit, I would enter again in the trade and this time definitely prices
would move in the opposite direction because of rubber band
theory. Ultimately it was not a bad day for my trades, in third trade, I
got a very good return.

So Now that you understand How I Think While Trading, it’s


time to see the Back Cover of This Book…

I shared my story on “How I Reached These Heights in Stock


Market and How You Can Do This Too…”

Best of luck for you journey


~ Jyoti Bansal

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