With my experience of 7 years of trading i would like to share ways to make profits from trading stocks. The strategies shared will be best suitable for stocks only and not commodities.
Just evaluate yourself during market hours that “are you doing something that is unique?” The strategy that will give you profits will automatically speak for itself.
Also, it’s the fact that no strategy will work always. You have to modify it with market conditions.
Like, currently intraday and positional trading is a bit risky as compared to long term investment. So, in this case you should increase the time frame from intraday to long term and avoid intraday trade.
So, even though i am sharing the profitable strategies (doesn’t mean we trade with these strategies) but remember what they say “nakal ke liye bhi akkal lagti hai”. Which in english means “even for copying someone, you need brain”
Supertrend (Period 10 and multiplier 3) :- This is simple indicator and many traders under-estimates this indicator. This is a golden key for all intraday traders, additional benefit in this includes the trailing stop loss.
Condition: It works accurately only in good liquidity conditions. So, you can make list of intraday stocks that shows good movement daily. We will upload the list soon, you can follow us if you don’t want to miss it.
Bullish and bearish engulfing :- If one candle completely covers the previous candle then its engulfing pattern. If formed at bottom then green one should be bigger candle and on top red should be the bigger candle.
Condition: The engulfing should be reasonably big, shouldn’t be a small one.
Important : After taking the trade book profits on the third candle. Like, if engulfing pattern is formed on 10 mins time frame at 11 am, then book profits by 11:30 am.
Avoid indicators that are plotted below the chart:- Intraday traders should strictly stay away from indicators like macd, rsi etc. They are lagging indicators, which means they show delayed reaction. Intraday traders always use indicators that are plotted on the candle chart, like supertrend and moving averages.
Also, at last when you finally settle with anyone or two strategies (shared by us or your own), follow it with discipline and trade only when opportunities are generated according to the strategy. This will keep you away from over-trading
Guru mantra:-
Stay away from momentum trading or strategies involving momentum trading. “If you go with the flow then flow will drive you, you will have no control on where you are going”.
Sit relaxed and wait for your decided trading pattern or strategy to give you the signal to trade.
thank u