Stock Trading Steps

Trade result for 17th September

It was May 2014, I was in MasiMara,Kenya  to watch crossing of animals across the Mara river. It was a one-week trip to recharge and rejuvenate myself away from the hustle and bustle of Mumbai.  Little, I knew this trip in Masai Mara will answer my long pending question – how can I maintain the similar life style post retirement.

I met with a young French couple in a night game drive. During the course of travel, I found these couple are globe trotter.  They are stock trader and follow “4 hour work week “ by Tim Ferris to achieve freedom from corporate life.

I studied various methods stock trading and did paper trading to understand the concept. This process of self-study  continued for  3 years. I attended two online training workshops.

I am ready for my first independent training. I decided to start my trading tomorrow 17th September just after my 53rd birthday.

My total capital 2,00,000 in Zerodha trading account. My target is to achieve 2 % return over my capital in 25 trading days.

Target amount in trading amount on 17th October is  2,04,000 

I will trade in cash on 3 stocks maximum in a day. I will limit INR 20000  for trading in one stock.
I will use Zerodha BO order with SL 1 %. Order will be closed with Target or SL or EOD.

My market view for 17th Sep’18 is positive because Nifty formed hammer candle on weekly chart and at the money call unwinding. As per technical and option chart, the possible range of Nifty will be between 11600 to 11300.

I selected 5 stocks to trade for tomorrow. Will trade on three stocks based on trigger.

I will place three orders between 9:30 AM  to 9:45 AM. Will see account only in evening post office  hours. In case, volatility increases SL need to be increased to accommodate large swing.  In that case, will do two trades instead of three trades.

1. Tatamotors

Quantity: 800
Buy above 270
Sell below 263
SL 3 points so max loss 2400

2. Hexaware

Quantity: 450
Buy above 468
Sell below 456
SL 5 points so max loss 2250

3. Reliance capital

Quantity: 500
Buy above 424
Sell below 413
SL 5 points so max loss 2500

4. LT

Quantity: 150
Buy above 1370
Sell below 1350
SL 20 points so max loss 3000

5.  Apollo tyre

Quantity: 500
Buy above 244
Sell below 232
SL 5 points so max loss 2500

My max loss will be around 7500 in three trades. I will set 2% as profit target for each trade.

If I make continuous loss for 25 days I will be out of business. I will be part of those 95% trader who lose capital in first 3 months. In actual market, emotion gets tested and that is the biggest challenge for a trader to have consistency.

Will share my rational behind selection of stocks, target and set of stop-loss in future posts if I survive more than 3 months.