Here we explain the some best steps you can consider before start trading on any stock for short term. Our strategy is to get maxmimum profit (around 20 percentage) in a month with same capital.
- How to pick up a stock
- What strategies we are following
- What all paramaters you need to analyse
- How to analyse the graph pattern
- When to buy , When to sell or when to exit
- With an example (Motherson sumi wiring india ltd)
Best stock with returns huge profit
Best swing stock which may returns 10 percentage in 3 weeks, visit our stock list
How to pick up a stock
Consider breakout stocks, from any stock market websites like
chartlink Or from telegram discussion group
From Tickertape , Go to stock screener ( tools of the trade) apply the following filters
What strategies we are following
If you are planning to invest 1 Lakh rupees in swing trade, invest 10000 each in 10 trade. For swing trade we expect a return in 1 to 15 trade days, if any trade reached stop loss, you have 9 other stocks that achieved targets, again you can use the same capital for new swing trades.
For example
if 10 out of 5 Trade achieved target of 10 percentage in one week, you will get 5000 profit, and same capital ie 50000 can be invested in another 5 trades.
if 10 out of 3 Trade achieved target of 10 percentage in second week, you will book a profit of 3000 in coming week, again newly invested 5 trades may also book profit.
if 10 out of 2 reached stop loss in third week, you will have a small loss, even though monthly you can book a huge profit ( average more than 10 percentage with same capital of 1 Lakh)
What all paramaters you need to analyse
- Current news on that particular stock
- Know about the organisation, their subsidaries, their products etc. About tab in screener will help you for this https://www.screener.in/
- Average brocker target from tredlyne
- Forecast & Rating in tickertape (Buy siginal)
- Strength, weekness and opportunity from tredlyne
- Check the durability score, buyers volume etc
How to analyse the graph pattern
Usually we go with cup & handle pattern Or morning star pattern. For morning star pattern we need to analyse the stock for 3 days
Example MSUMI (june 16 2022)
You can see where we set up our target and stop loss
For MSUMI, after trend reversal on jun 16 2022, the stock price increased from 64.00 to 78.00, able to book a profit of 22 percentage.
In additon to candle graph pattern, we added MACD indicators, RSI (Relative strenght index ) & Volume graph.
We check whether there is a MACD cross over, RSI value is between 30 & 70, and a high volume of buyers in volume graph
Target and stop loss |
Thanks for reading our blog
DISCLAIMER
I AM NOT A SEBI REGISTERED ADIVISER.ALL MY VIDEOS, POST ARE RECOMMENDATIONS ARE ONLY FOR EDUCATIONAL AND MOTIVATIONAL PURPOSE.PLEASE DONT TAKE RISK ON YOUR HARD EARN MONEY ON THE BASIS OF MY RECOMMENDATION AND VIDEOS.MUST TAKE ADVICE FROM YOUR FINANCIAL ADVISER BEFORE PUTTING REAL MONEY INTO STOCK MARKET.