I have only taught you how to enter You’re question is valid that you don’t want to become Abhimanyu Teach me how to exit. You’re trading now. What is the duration of your trade? Long swing, i.e., holding position for 15 to 20 days And you’re tracking the daily chart.
One approach is to check the chart and see if any support has been broken to exit once But it’s difficult to exit at that point as you get biased while holding the position You need a guide and support who’s monitoring you and tells you to exit Otherwise your mind will not let you take the logical step A system needs to be built for you that can provide with an exit plan A lot of systems can be made.
A lot of permutation and combination can be made on technical analysis and price based system Moving average in itself is a big system.
If you notice I have added Moving Averages Of 21, 55, 100, and 200. Whenever 21 period moving average goes beyond the 55 period moving average, then sell It means that the stock is weak in the short term If you want to check smaller duration, then add another moving average Add 9-period moving average.
Let’s add another moving average 9 period moving average has been added Whenever 9 period moving average goes beyond 21 period moving average, sell In this case of Tata Motor 9 period moving average in this stock.
This is 9 period moving average and this is the 21 period moving average As soon as the 9 period moving average goes beyond 21 period moving average The stock has given a sell indication.
If you’re position is open, then you can plan to exit as per this pattern If you want to trade small, then you can check the convergence of 9 and 21 periods If you want to trade big, then monitor when 21 period moving average goes beyond 55 period moving average Larger the trade, higher possibilities of getting a larger swing.
If 21 is above 55, and you must have bought around 138 If you’ve bought at 138, and if you have to sell at 250, then it’s okay What if I had bought the stock on 15th February If you bought on 15th February for a duration of 7 to 8 days You’ve bought at a price of 331, then you’ll exit at a price of 314 You’ve incurred a loss since the moving average has gone down
Do you like loss? No.
Start liking loss now. You should like loss if you want to trade in the share market There’s an ad ‘Daag Achhce hai’ Why? You’ll use Surf only because there are stains You’ll only incur profit when you like loss.
Don’t be afraid of the loss Learn how to book loss, don’t crib over the lost money If you don’t lose, you won’t gain. Don't worry about it You bought, the price changed its trend and now you need to exit.
It’s simple There will be a new rally and we will enter again. It’s not like you’ve forgotten this stock You’ve bought Tata Motor for some reason. The theme might still be intact You buy again if the moving average goes up again. This is a very simple moving average The oldest priest.
This is a way to trade in the stock market There’s a new indicator trending named Super Trend The indicators are evolving continuously and new theories are being formed Leading to the development of modern indicators.
There’s an indicator known as super trend You can insert it as well. Indicator, super trend, search for super trend You’ll get all these in StockEdge as well.
Super trend indicator It has its parameters.
If you go to settings. ATR Period of 10 and ATR Multiplier 3 I won;t go into details. ATR is an indicator itself.
Average True Range It tries to evaluate the average range of each stock for past days considering the average of high and low 10 denotes the average of past 10 periods.
We can change it to 15 It calculates the average of high, low, gives a range and ATR multiplier multiples the range 3 times to give the super trend formula That’s all you need to know, don’t go into a lot of details in it It’s a trending indicator which signals you that the tend has changed.
You can see the buy and sell indicator in it. I’m in it till the super trend is positive I’ll exit when the super trend is negative. You can enter when it’s positive again This is daily chart.
If you don’t want to wait and want the signal beforehand for you to exit Then change the daily chart to a 2-hourly chart. The 2-hourly chart will give you an early signal It has given you a signal very early.
I have a question In this chart there are 2 big buy signals but there’s a small red signal to sell in between How do I sell there? The buy, sell alerts will increase if you reduce the duration The larger the duration, the alerts will be less The trades will be more with smaller duration, where some trades will be successful and some unsuccessful You need to accept it as a part of your model.
If there’s signal to sell, then sell it Buy it again if the signal says buy.
It’ll be difficult as you sell at this point and buy at this point You will have pay more to the market, but it’s okay. It’s a part of your model We can reduce it to 1 hour.
Look The more you reduce the duration, the more buy, sell signals you’ll get, the more you’ll be confused The more engaged you’ll have to be in the market. So my advice for you is to track 2-hourly chart Since you’re talking about 15 to 20 days, then 2-hourly chart is sufficient for you You can distribute a day into 3 parts - morning, afternoon, evening session of 2 hours each 2-hourly chart will be sufficient for you. I have a question.
One strategy is When a smaller duration moving average goes beyond the longer duration moving average, it’s a cue to sell The second strategy is this one. Can we combine both and then decide. We can Most of the time it’s going to be the same decision as this has also been derived from moving average But you can combine both. My final objective to teach you trading is that I’m picking up each component and finally I’ll make a template for you And you need to use that template in your stocks. We’re 25% there already By the end of this module, when we complete 100% you’ll learn how to make your own template combining multiple templates and then you’ll mint money My suggestion to you is to track 2-hourly chart when you’re doing swing trading There are delays in daily chart and you might not be okay with it and you can give time to the market You don’t have to sit in front of the screen throughout but you’ll get an idea of the price roughly If I see a 2-hourly chart, does not mean I’m sitting in front of the screen throughout I’ve added alerts.
I get the alert if there’s any activity and that’s when I get active in the market What if I want to do intraday? Intraday is a different ball game Remember I had shown you how you select stocks where there can be momentum using price and volume action You enter, book a small profit and then exit. It’s a different ball game This is a different ball game.
As a youngster, millennial and someone who has other things to take care of I will never recommend intraday trading to you. Focus on swing trading, you’ll earn the same You’ll earn the same in intraday and swing, but there’s more pressure in intraday and You’ll have to sit in front of the market the entire day In swing, you can track the markets while doing other activities.
Trade when you want to You can probably trade 10 times in a month, why do you have to trade 10 times in a day You’ve understood the super trend and moving average. Let’s take an example I can sell all your 10 stocks here. You’re tracking Reliance as well What is the 2-hourly chart of Reliance telling you? The supertrend is asking you to buy There’s a small moving average. Let’s remove all the other noisy moving averages Let’s just consider 9 and 21. The dark one is 21, and the lighter one is 9 If we combine both, then the 9-period moving average is still beneath 21-moving average Although supertrend is telling me to buy.
I’ll hold then When the 9 goes above 21 and the super trend is still buy, that’s when I’ll enter. I’ll wait till then Next is HDFC Bank. Its condition is also bad, so I won’t do anything in it Next is ICICI Bank. Its condition is also bad Next Maruti. Its condition is also bad, recently it’s been worse Next.
Hindustan Unilever. Its situation is better. Although there’s a sell signal but the moving average is still above I’ll enter it whenever the super trend gives me the buy signal So you should note it down that there can be buying in Hindustan Unilever Dabur.
Its situation has gone bad recently. Tata Steel. Idea Its situation is also bad. If you see that the trend for all stocks are negative in the market. Just Dial can probably take support. Indigo has just entered the negative zone.
The super trend is negative but the moving average has not given the negative confirmation That’s what you have to do. Identify as per your setup on your stocks daily Whenever your super trend is showing positive and the moving average crossover is also showing positive And a tendency has been created of the price going above the demand zone That’s when you can take a position.
When will you exit? Whenever there’s negative signal in super trend or moving average, that’s when you exit This is the model till now. This is not the final model. We have to create the full model But if you adapt the basic concept and start tracking it, You’ll be able to see entry and exit points and a broader trend which can be missed by price You’ll be able to identify it through these 2 tools, super trend and moving average You can also make it in StockEdge, if you don’t have TradingView If you go to any stock, suppose Tata Motors You can add both moving average and super trend in Edge chart. How? But this is not the 2-hourly chart, it’s a daily chart. I’ll add super trend here and I save it You have Moving Averages and the super trend.
You can use Edge chart as you get the delivery data My suggestion would be to use TradingView to check intraday 2-hourly chart And track your stock movements in StockEdge at the end of the day This was a small video to introduce the basic concept of super trend And told about Moving Average crossover and I think she will be very comfortable She’ll start making a template for herself and start following it Even you should make your own template, setup and a set of rules And start tracking the market according to yourself, but don’t start trading yet We’re still a bit far from the right trade.
We’re almost there but we have still not reached In more classes where I will refine this template further and give you a final template Till then, keep learning, teaching other people and sharing my work Thank you friends. Bye
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