Breakout Wizard

Market breadth is the only reliable indicator in the market which tells us the underlying sentiment of the current market. We should always first analyze the underlying sentiment of the market before putting our hard earned money on the line. Now the question might arise in your mind how do we check the market breadth of the market? Wait! I’m not going to tell you that “Go to NSEINDIA.COM website and check how many stocks advanced versus how many stocks declined today”. This isn’t the proper way to check market breadth of the market. Trading is not so easy; you have to do some work to get the information. First of all, you have got to download ‘NSE BHAVCOPY’ from their official site, then after downloading the sheet, open it now on your excel in computer. Then delete every column on the sheet except “SYMBOL, CLOSE & PREVIOUS CLOSE column. Then write the formula on next column to get the percentage change of today. The excel formula for % change in stocks is:    ...

When we work during market hours, we feel more rushed from inside and take emotional decisions because price keeps going up and down and color keeps changing from red to green and green to red while market is active. IMHO, market hours is not a perfect time to take any trading decisions. We should take rest or read any book or article on the Internet to reset out brain during market hours. When the market is closed, we should be fully prepared to work with more calmer and refreshed mindset so we can take better and rational decisions.  In trading, we should always find a way to minimize our emotionally driven decisions. 

As everyone knows rules are more important in trading than any other things. I have been writing these rules on my personal trading journal for the past 3 years. Following these rules might help you to make money during bull market, and alert you to stay in cash during bear market. As we grow more in  experience, more rules will be coming and we will be refining our approach along with our rules. Some technical rules listed here might not suit your approach, because one size doesn't fit all.  Learn to take a small loss. Don't invest in same sector that you have already invested in. Only trade stocks which is outperforming the Index. Always  trade in the direction of the primary trend in your   chosen time frame. Be patient, wait for the right opportunity in the market. Stay in cash, when the general market is below 20-50 EMA. Always keep the position size of your trades constant. Let your winning trade run as far as it goes with ATR or EMA TSL. Al...