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RuleBook

  1. For beginners:
    • Long = Buy
    • Short = Sell
    • SL = Stoploss
    • TGT/T1/T2/T3 = Target/Target1/Target2/Target3
    • Trail means keep running position and book where you feel like. Best is to use a SL order and keep on modifying it from time to time.
    • CMP = Current Market Price
  2. Always manage you position sizing properly. Leverage is good for brokers to advertise their platforms but let’s say you have Rs. 10,000 and you go full in with 5x margin. You can buy shares worth Rs.  50,000. If stock goes up 10%, you earn Rs. 5,000 (Capital is now 15,000) and if it goes down 10% you lose Rs. 5,000 reducing your capital into half ie. Rs 5,000. So try to avoid margins where possible and stay within max loss taking ability.
  3. Divide your risk by Stoploss to calculate quantity. If a trade has a stoploss of 10 and you’re willing to risk 1,000, simply divide 1,000 by 10 to arrive at 100 which is the quantity you’ll take.
  4. Market presents you with multiple opportunities every day. If you miss a trade, let it go. In life you have to let go of certain things and people, the same applies here. FOMO will kill you. Trust me.
  5. Never enter a trade when it hits T1/T2/T3. Enter a trade at its entry point only.
  6. If you don’t have confidence in a trade, don’t trade in real and paper trade it. Do the analysis after the market about what happened with the trade.
  7. If you aren’t able to hold trades till the end, it means you get scared by seeing your PnL. Close the PnL Screen and reduce quantity and gradually increase it when your emotional tolerance increases. This takes time. For holding trades, reduce quantity (eg 10) and let a few trades run in front of you for 2-3 hours. Trust me, it works.
  8. When you enter a trade, after execution, the next thing should be to place a SL order. Do this no matter what.
  9. Buy Above means buying when the price is crosses. Eg if we say buy above 150, this means when price goes above 150, you take a buy position then only. A good way to enter in these trades is to use a Stoploss Buy Order (SL-L or SL-M) at 150.1
  10. Sell below means selling the stock when it falls below a certain price. Eg if we say sell below 100, this means when the price goes below 100, you take a sell position then only. A good way to enter in this is to use a Stoploss Sell order (SL or SL-M) at 99.9
  11. If you want to buy below the current price, use Buy Limit order. Eg CMP is 125 and you want to buy at 123. Place a Buy Limit order at 123 and leave it.
  12. Similarly, if you want to sell above the current price, use a Sell Limit order. Eg CMP is 195 and you want to sell at 197. Place a Limit Sell at 197 and leave it.

This rulebook will be updated from time to time.

Happy Trading everyone!

            -Operator