My Name is Surendranatha Chatopadyaya a Trader and
Investor with more than 15+ years of experience. The reason for this document
is to simply share market for beginners and experienced people. Many people
will explain about Share market and its technical and fundamental analysis.
Many people try to understand these analysis and fall in trading.
People normally don’t explain
about entry and exit points. Many people normally complaint regarding that
their SL hit very frequently.
Techniques
1) Buy
some shares and wait till it increase 10%, once it reach 10% profit it you can
sell 9% shares so that remaining 1% shares free for life. Incase if it reduce
10% take another 10 shares and again and if increase 10% then sell 9 shares. If
you keep on doing this for long term you will accumulate huge quantity of free
shares.
2) You
can buy some of the nifty 50 shares around 100000 rupees and next day morning
you can sell 50% of shares. If that share value reduce then you can rebuy the
morning sold shares, if rate increase then you can sell remaining 50% shares.
With this method within a year your money will become double.
3) In
this method you need to add all nifty 50 shares in any app to see ascending or
descending order. We are going to buy top two loosers everyday. If we keep on
buying very soon we are going to complete our money. Then try to see if any of
our shares are in top gainers and giving some profit to us. In this method
daily you need to buy top loosers and sell top gainers. In this method our
capital will slowly increase.
4) Always
try to keep SL around 0.75% and target 1.5% in trading. In this method even if
you loose 70% of trades you will be in breakeven situation. Especially in BO
order you can place target stop loss and trailing stop loss. In trailing stop
loss you can put your SL amount. For example if the share value is 200 the
target will be 3 rs and SL will be 1.5 and trailing sl should be 1.5. in any
case if share rate goes to 201.5 your SL will become 200 so in many cases you
will be in profit or breakeven.
5) If
some share is falling every month that means it is very weak in nature due to
some news. Examples are tatamotor or tatamotor dvr or any other pharma stocks.
In this case if you are a option player you can do one thing to get massive
profits. One is you can take near call and long put. Assume tatamotor is 300
now and if you want to make a strategy then you have to buy 310 call and 280
put in this case if it gives breakout then it will go to 20% up that means 360.
If it fall as everymonth your put will give you some money which you invested.
In this method you have to chase a share for 3-6 months as it can give breakout
anytime and the day it gives breakout it will become even double. You can
observe many such scenarios.
6) One
more new method for traders is that everyday morning the trading will go to
very volatile scenarios. In this scenario one can use the method 4 with SL and
targets. And stock selection is based on market movement and top gainers and
loosers. You can select any two shares which are in top gainers and you also
can select two shares which are top loosers. In this case you just can’t buy
only gainers. You have to see what is the high point of the gainer and what is
the low point of looser. And you can put buy order on day high and target of
1.5% and sl of 0.75% with trailing sl of 0.75%. same opposite to loosers.
7) Many
analysts say that bullish and bearish engulfing will work perfectly for these
bullish engulfing and bearish engulfing you can add positions in 1:2 ratio of
SL. That means if you are expecting 10% of target then your stop loss will be
5% on closing basis. All these techniques will work but you need to have clear
SL and target. Just put your target and SL and lets market play game for it. if
you observe with your mobile and laptop you are going to get into trap of your
own emotional imbalance and take wrong decisions.
8) One
more traditional method of investing for housewife’s and safe traders is try to
save your money in purchasing in wholesale. Like one kilo rice is 50 rs and if
you buy in wholesale it will come around 35 rs. So you are saving 15 rs in
rice. Like that if you save in every item it will become around 1500 to 3000
every month based on your family size and expenditure. Type in google for top 6
months losers of nifty shares. Like tatamtrdvr is around 140 rs down almost
80%. Invest your saved money in this share. Similarly, every month select one
share in similar pattern. Here either you will become crorepati in long-term
with your saved money or you will not get any money. In both scenarios you are
not going to lose anything and you won’t felt bad.
9) In
downtrend if you see bullish hammer then buy and wait for a week. It will give
three green candles in day candles. So, three to four days it will be in
bullish trend. Based on your capacity you can buy in cash or calls or futures
with SL of previous day low.
10) Go
to any screeners and try to search for price high and volume high and pick 3
stocks and invest in all three stocks equally. If you have 150000 then 50000
each and then after 4:30pm on same day put AMO order for all three stocks. 30%
shares with 2% profit and 30% shares with 4% profit and remaining 40% shares
with 6% profit. If share is around 10% up previous day, then there are chances
that will open and fluctuate by 5-10 % easily. So, in this volatility you can
earn money easily without any problems and before market open. This is also
called as 2 rupees interest on daily basis method. Daily 2 rupees means in a
month you will get total 40% interest. Sample of this method given for 12 month
period in below. If you invest one lakh it will become 56 lakhs in one year.
|
Month 1
|
140000
|
|
Month 2
|
196000
|
|
Month 3
|
274400
|
|
Month 4
|
384160
|
|
Month 5
|
537824
|
|
Month 6
|
752953.6
|
|
Month 7
|
1054135
|
|
Month 8
|
1475789
|
|
Month 9
|
2066105
|
|
Month 10
|
2892547
|
|
Month 11
|
4049565
|
|
Month 12
|
5669391
|
11) Open
nifty 50 or nifty next 50 list for 52week high. observe light green and dark
green. Recently 52-week high breakout. and if it is from same sector then you
will easily get 15%.
12) Explain
different kind of candles and it’s meaning whether bullish or bearish. Pending.
13) Simple
nifty strategy. In this strategy you need to have more discipline. You have to
check high and low of nifty for previous day. Next day you need to place stop
loss buy order and stop loss sell order. Stop loss buy order should be on
previous day high rate and stop loss sell order should be previous day low
rate. Whenever the trade executes you need to exit with two to three points
profit. If you think about big profits there are chances that you may end up with
loss. Infact if you get two points loss also please exit with minor loss as
brokerage will be around one point. Sometimes nifty will jump suddenly to 10
points up, in that case change your SL to cost and wait for 25 to 30 points.
Overall if you earn 100 points of nifty it is equal to 7500 rupees. It looks
small but confirm profit and very good strategy. The same thing you can slowly
implement in shares also but need more discipline and practice for this.
14) Create
your own watchlist by selecting top 4 gainers and top 4 loosers in nifty and
nifty midcap. So total 16 stocks will be there compare these shares with nifty.
You can find one or two stocks which are not moving with nifty. Select that
share and take call or put. If nifty going down and any one share which is not
going down, then that means you have to take call of that share and same as
apposite for put.
15) Best
investment technique for no brainers. In this method you can invest in India’s
best stocks without knowing fundamental analysis and technical analysis. The
best masters are there for you to advice. The reason for this technique
including is most of the people don’t know how to invest in shares and they
don’t know selection of shares. If you heard the word MF(Mutual Fund), it is
the combination of multiple shares which are driven by portfolio managers who
studied their life time for stock selection. Now you just need to find best 5
mutual funds in large cap and best 5 mutual funds in mid cap and best 5 mutual
funds in small cap. Now in moneycontrol.com you will get all these top MF
details. Next you need to enter into all the top 5 MF and see their holdings.
Now select top three holdings from each mutual fund in all categories, large
cap, mid cap and small cap. Now see which are appearing commonly in most of the
mutual funds and buy those by closing your eyes. Sit without panic and without
checking daily. If you don’t want to dare to invest in these just wait with
cash and wait for crash because of rupee dollar variations, because of global
weakness, because of crude high, because of any wars, because of budjets and
last but not least elections. Once any of these situations come market will
fall drastically and at same time all good and bad shares also fall. That time
just jump into your favorite list and grab it. if you think market will fall
more then buy only 50% of shares and wait for one more big crash or a week to
see situation. Normally every year you get three to four such opportunities and
then you have to grab these opportunities.
This strategy still need to be tested, but I
always test with real money instead of routine paperwork. Collect your favorite
stocks either it may be nifty 50, or mid cap, or small cap, or f&o shares
or f&o shares between 50-100 rs or any of your choice and watch daily for
top gainers and loosers in that list. Morning 10 am take one share of top
loosers. Normally some brokers like zerodha won’t charge any amount for buying
stocks in delivery as they will charge only when we sell on delivery. Again
evening 3 pm check same list for top looser and take one share. Or you can
decide certain amount for this for example 200 rs if the watch list is f&o
shares between 50-100 you will buy for 50 to 70rs share in morning and same in
the evening. Total you are going to invest only 100-150 rs in one day. Total
you have 20 trading days are there in a month so in a total month you are
investing only 2-3 thousand which normaly people invest in MF or any other
investment strategies. I am assuming that you will become crerepati soon in
this method as you are buying quality stocks for cheap cost.
