One of an interesting thing in Current stock market,is as soon as Saturn progressing after Retrogression phase, gained the speed in trine to Rahu - Both raw Metals & oil prices are doing good. At the sametime Rahu trine alignment with Jupiter has also boomed the bank market.

A thread on SCALING IN - OUT METHOD -

What is scaling in - out?

1. Scaling in is adding on to the positions when they move in our favor (Pyramiding).

2. Scaling - out is exiting the portion of the position when the trade moves in our favor.

I have explained about pyramiding in previous tweets.

// Why use scaling out instead of exiting all position at once ?

When you are using ALL - out method where you exit positions at once, mostly you use wider Trail SL as you want to capture big moves and exit all when trail sl hits.

The problem with this method is that either you make too big or many times your medium size winners turns out to become Scratch trades.

So, when we use the scaling out method, we are trying to capture most of our medium size trades , so that they do not turn into scratch trades.

// How to use scaling out method -

Say we have to got a signal to enter in a trade, and we have to buy 1200 qty according to our Position sizing.

So, we have to divide this 1200 qty into parts, how much? It depends on you.

We can divide into 3 parts, each part 400 qty.

Like humans , stocks too have different nature and if you are trading every stock the same way then this thread may be for you.

A thread on Nature of stocks and how it can help you to improve your trading results.

First start with what is the nature of stocks ?

I broadly categorize stocks in two categories-

1. The momentum stocks-

These are the stocks where most of the moves are swift in nature, or we can say that the pullbacks in a trend are smaller.

2. The AKBC stocks-

These are the stocks where most of the trending moves comes with deep pullbacks.

Examples-

So the purpose of categorizing these stocks, is that we Trade those stocks/instruments which are more suited to our style.

Say if you are a mean reversion player and you are trading in the momentum stocks category then you are more bound to lose over large number of trades.

Model Portfolio 3

Time Horizon 3 years or earlier ~ Depends on if the stock performs significantly well in faster time. Review of business performance important every quarter.

This portfolio is suitable for aggressive investors who believe in risk taking and look for growth

Name %allocation

~ Laurus Labs 15%
~ Balaji Amines 15%
~ Deepak Nitrite 15%
~ Kopran 10%
~ Pokarna 10%
~ Eveready 10%
~ Dynpro 10%
~ Manorama 5%
~ Adani Enterprises 5%
~ SHIL 5%

~ Laurus Labs
~ Kopran

My top two picks in pharma sector are Laurus Lab and Kopran.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly.

~ Balaji Amines
~ Deepak Nitrite
~ Dynpro

These three are my top picks in Chemicals.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly

~ Pokarna
~ Eveready
~ SHIL

These three are my top picks in Home Consumption.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly.

10 truths I wish I knew when I started trading:

Trading always was, is, and will always be a game against yourself. Nobody can make it happen for you, and there’s nobody to beat.

Your only chance of winning is to practice being a better version of yourself today than you were yesterday.

/1

Traders waste so much energy lamenting on "I missed this" - if all that energy was spent on fixing a problem they just identified — many of them would be better off than they are today.

Be a good problem solver, not a complainer. That negative energy is no bueno.

/2

Performance is a byproduct of position sizing.

Position Sizing stems from conviction.

Conviction is built by doing deep dives and studying specific setups in the markets, especially ones that tap into its structural tendencies consistently.

/3

Have a few setups you know really really well.

I have hundreds of examples on each, done deep dives & can trade them when I see them instinctively.

You have to know exactly what ur looking for…so u can repeatedly execute those setups & make them sources of income.

/4

A Thread on~ O V E R T R A D I N G

Sitting and observing the numbers flicker on the screen might be very exciting.

But have you ever felt like you might've done better? Or you're just too tired of waiting that you punch an order right in?

That's a Bad Idea.

So, Let's understand the reasons behind it and try to find a way out.

1. Not having a trading plan makes you clueless.
Your impulses start to take control of you.

2. Having a trading plan; But still taking impulsive/ random trades.
Because of adrenaline rush or gambling instinct.

3. Revenge trading
When you try to force a trade in order to recover from a previous loss.