Rule Book
💸
For
💸
Trading
A road Map for Beginner from zero
• Steps by step Guide how to learn TRADING.
• Open demate accountin India's best broker.
• Start learning Candlestick Behaviour .
• How to draw Support and Resistance.
• How to draw Trade lines.
• About chart Patterns.
• Learn price action.
• Start virtual trading(Paper trading).
• Find market trends -Bullish, Berish, sideways.
• Fix Entry and Traget.
• Fix stoploss.
• Learn about psychology and Mindset.
Important applications and websites for
stock market
• Trading view for chart analysis.
• NSE website for option chain .
• Opstra Option Analysis
• Money control for stock market news.
• Chartink for stock scanner.
• Small case for stocks portfolio.
• CNBC for market news.
Trading strategy
What's the trend?
Bullish Sideways Bearish
Wait for
Price at breakout Price at
support resistance
Yes No No Yes
Don't Don't
Buy Sell
trade trade
Rules for discipline traders
Discipline is a crucial aspect of successful trading. Here are some rules for
disciplined trading:
Have a Trading Plan:
Develop a comprehensive trading plan that includes your financial goals, risk tolerance, entry and exit strategies, and
rules for money management.
Stick to Your Plan:
Once you have a trading plan, stick to it. Avoid impulsive decisions based on emotions or short-term market fluctuations.
Risk Management:
Set a risk limit for each trade, typically a percentage of your total trading capital. Do not risk more than you can afford to
lose on a single trade.
Use Stop-Loss Orders:
Implement stop-loss orders to limit potential losses. This ensures that you exit a trade if it moves against you beyond a
predetermined point.
Diversify Your Portfolio:
Avoid putting all your capital into one asset or type of investment. Diversification can help spread risk and reduce the
impact of poor-performing assets.
Continuous Learning:
Stay informed about market trends, economic indicators, and news that may impact your investments. Continuous
learning helps you make informed decisions.
Control Emotions:
Emotions like fear and greed can lead to irrational decisions. Stick to your strategy and avoid making impulsive choices
based on emotions.
Patience:
Be patient and wait for the right trading opportunities. Avoid chasing the market or making decisions based on short-
term fluctuations.
Review and Evaluate:
Regularly review your trades and assess their outcomes. Learn from both successful and unsuccessful trades to refine
your strategy.
Set Realistic Goals:
Establish achievable and realistic trading goals. Avoid setting overly ambitious targets that may lead to excessive risk-
taking.
Rules for forex intraday trading
Select Liquid Currency Pairs:
Choose highly liquid currency pairs for intraday trading. Major pairs, such as EUR/USD, GBP/USD, and
USD/JPY, tend to have tighter spreads and higher liquidity.
Stay Informed about Economic Events:
Keep track of economic indicators, news releases, and geopolitical events that can impact currency
movements. Economic calendars are useful for scheduling major events.
Use Technical Analysis:
Employ technical analysis tools such as charts, trendlines, support and resistance levels, and technical
indicators (e.g., moving averages, RSI) to identify potential entry and exit points.
Set Realistic Profit Targets and Stop-Loss Orders:
Establish realistic profit targets based on your risk-reward ratio. Implement stop-loss orders to limit
potential losses and protect your capital.
Risk Management:
Determine the amount of capital you are willing to risk on each trade (risk per trade) and adhere to it
strictly. Avoid over-leveraging, as it can lead to substantial losses.
Time Your Trades:
Be aware of the most active trading hours for the currency pairs you are trading. Forex markets tend to
be most liquid during major market sessions, such as the overlap between London and New York.
Monitor Market Conditions:
Continuously assess market conditions and be ready to adjust your strategy based on changing trends,
volatility, and news developments
Loss recovery plan
Implement Risk Mitigation Techniques:
Consider using risk mitigation techniques such as stop-loss orders, take-profit orders, and
other risk management tools to protect against future losses.
Rebuild Confidence:
Losses can impact confidence. Take the time to rebuild your confidence gradually. Start with
smaller position sizes and focus on high-probability trades.
Education and Improvement:
Use the experience of losses as an opportunity for education and improvement. Learn from
mistakes and continuously update your knowledge and skills
Professional Guidance:
If needed, seek professional guidance. Consult with experienced traders or financial
advisors to get insights into your trading strategies and risk management.
Stay Disciplined:
Stick to your revised plan with discipline. Emotional discipline is crucial in trading,
especially after experiencing losses.
Patience:
Be patient during the recovery process. Avoid the temptation to rush into trades to recover
losses quickly. A patient and disciplined approach is essential for sustainable recovery.
Swing trading strategy
Swing trading is a strategy that seeks to capture shorter- to medium-term price movements within a trend. Unlike day
trading, swing trading typically involves holding positions for a few days to a few weeks. Here's a basic swing trading
strategy:
Market Analysis:
Start by conducting a thorough analysis of the overall market conditions. Identify the prevailing trends in the broader
market or specific sectors.
Selecting Stocks:
Choose stocks with strong fundamentals and a clear technical trend. Look for stocks that are in an uptrend if you plan
to go long, or in a downtrend if you plan to go short.
Technical Analysis:
Use technical analysis to identify potential entry and exit points. Key technical indicators for swing trading include
moving averages, Relative Strength Index (RSI), MACD, and support/resistance levels.
Identify Swing Points:
Look for swing points where the price is likely to change direction. These could be at the end of a correction within a
trend or at a breakout from a consolidation phase.
Set Stop-Loss and Take-Profit Levels:
Determine your risk tolerance and set stop-loss orders to manage potential losses. Also, set realistic take-profit levels
based on your risk-reward ratio.
Risk Management:
Manage your risk by ensuring that each trade aligns with your predetermined risk tolerance. A common rule is risking
a small percentage (e.g., 1-2%) of your trading capital on each trade.
Trend Confirmation:
Confirm the trend direction using multiple indicators and chart patterns. Look for confluence in signals to increase the
probability of a successful trade.
Entry Points:
Enter a trade when you have a confirmation of the trend and identify a suitable entry point. This could be at a
support/resistance level, after a trendline breakout, or at a key moving average.
Candlestick Patterns:
Pay attention to candlestick patterns to identify potential reversals or continuation signals. Patterns like engulfing, doji,
and hammers can provide insights into market sentiment.
