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© JYOTI BANSAL
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This Book Contains Exclusive Content And Is Not For Sale
~ JYOTI BANSAL
~ JYOTI BANSAL
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.
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-
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.
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.
The other two stocks that I traded were Momentum stocks. My third
stock was Bombay Burmah (BBTC) that I got in my Momentum
scanner.
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.
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.
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.
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.
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.
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.
My third stock was Mastek. The stock was can in the momentum
scanner but I traded it as a reversal.
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.
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.
$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.
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.
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.
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
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.
My stop was the upper band of Bollinger Band and target level was
near the support level.
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.
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.
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.
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.
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.