How-can-you-predict-the-rise-fall-in-the-stocks-price-in-day-trading
https://www.quora.com/How-can-you-predict-the-rise-fall-in-the-stocks-price-in-day-trading
My only investment strategy is to make money while investing or intraday trading, Portfolio as a whole for Investment stocks, Basket of stocks as a whole for the trading day stocks. So it doesn’t matter much what strategy I follow. But there are certain things that I do, in a disciplined manner.
For trading purpose: First, I start off my day, each day, by listening to the stocks that are being discussed on CNBC TV18 from 8:00 a.m. to 9:00 a.m. They normally discuss the happening stocks or trending sectors of that day. This will help in narrowing down the stocks or sectors that are in focus (either up or down) to trade for that day or the week. This helps me in understanding the mood of the market.
Also, the business shows have analysts like Ashwani Gujral, Sudarshan Sukhani, Mitesh Thacker, Sandeep Wagle, Rajat Bose, Prakash Gaba, CA Rudramurthy, Jay Thakkar who provide good information on the Nifty movement as well as 5–6 stocks each on their movement for the day.
Once the preopen bids are set, I bid for them at prices that I am comfortable and when the market opens, If I get them at the price that I wanted, then I am in Play. Very rarely do I chase stocks once they have opened more than 7- 8% uptick or downtick. I do shorting also, based on the same principles.
Do remember:
Sometimes the bets pay off and sometimes they don’t. Also, I have a set trading amount rule:
- For stocks less than Rs. 30, For each stock that i buy/sell, I have a restriction of 1000 shares or Rs. 30,000 maximum, whichever is lower.
- For stocks between Rs. 30 to 100, For each stock that i buy/sell, I have a restriction of 500 shares maximum or Rs. 50,000 which ever is lower
- For stocks above Rs. 100, For each stock that i buy/sell, I have a restriction of only 250 shares maximum. Why like that?
This policy defines my propensity to absorb losses incase of intraday issues like India surgical strikes or BrExit day falls or Budget day crashes. I normally buy 5 to 6 companies in a given day, meaning almost Rs. 200,000 - Rs. 300,000 each day to trade.
So, this way I limit my losses, though I have strict stop loss targets. Also, stocks with higher share prices need higher stop loss targets and hence, I have this strategy. Whichever way, at 3:15 p.m. each day, I check if I am ok with the profit or If the stock has further momentum or it is locked in UC, Based on that, I either close my positions for the day or carry them over for another day.
My best intraday stocks (on the upside as well as shorts) include Nandan Denim, Pioneer Embroideries, Marksans Pharma, Kuantum Paper, Malu Paper, Ruchira Paper, JK Paper, Ugar Sugar, Bal Pharma, Upper Ganges etc. It is important to ride the news. For eg: I shorted Tata group stocks in the last 3 days, as the news was bad enough for almost all Tata stocks. So you could have shorted any stock and made good money.
For trading, I run with the flow of the day. If the market is up, I buy stocks and If the market is down, I short stocks.
One last thing, never get flustered because of losses. They are bound to come for everyone some time or the other. It is better that they come sooner than later, so that your experience, courage and propensity to understand the stock market builds up.
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