In this concept, if we stick to the trend - losses will be minimized and profit potential maximized.
Few ground rules:
1. We trade only towards the end of day / next day open / close
2. We follow strict stop losses - which must comply to end of day / closing basis.
3. We stick to one stock (you choose which one)
This is a propriatory trading system developed by me..
I'm sharing a sample screenshot of the same. The red dots represent Sell's and Green dots represent buys.
I've indicated on the chart of Relcap where our entry and exits are - these are indicated by BOXES.
The best way to trade this system is to trade 1 lot only for stocks and trade in that stock only..
Here's a sample of what this looked like - a total of 450+ points / rupees per lot made..which is inclusive of the whipsaw's / losses (aprx 47 points) made over 6 months = lot 500 X profit 450 = 225000 on a capital of 50,000 margin ...Calculate for yourself.. chart below..
If you have a capital of 1 lakh - trade only 1 lot since the average margin is about 50 K per lot - the remaining 50 K we use for any whipsaw's - the larger the lot side the larger the whipsaw.. But profit potential's way higher - so you wont really make a loss in this system - a few whipsaw's may cause frustration but the idea is NOT to change the Scrip - stick to the same scrip.
Another way of trading - Book profits when you feel appropriate..
Having said this - I'm open to looking at any scrip you want to trade with this system.
Chambal is still in it's uptrend. Check chart below - Short Below 93.5 on closing basis tomorrow (10 mins before market close you can enter a short)
