Sample Trading Plan.
This is a sample trading plan for educational purposes only.
Trading Plan
Growth Avenues Ltd
Preapered by :
Dated :
Plan Your Trade Trade Your Plan
Trading Plan Objectives
Objective No 1 Apply the techniques learned during my trading courses
and acquire the ability and confidence to successfully
trade on a daily basis
Objective No 2 I will start with an Equities & Futures trading account of
Rs/-50,000 and will trade only 100 shares per position
for three months. Post three months will review my
performance and and trade with daily risk capital of Rs/-
500 per trade.
Objective No 3 I will also start with a Futures account of Rs/- 50,000 and
will trade only Nifty Futures (Lot Size 50) after three
months. Post three months will review my performance
and and trade with daily risk capital of Rs/- 500 per
trade.
Objective No 4 Will only trade liquid stock in Group “A” or Nifty Stocks
Objective No 5 Target Rate of Return 5% per month
Objective No 5 All trades will be rule based and Documented with charts
and maintain a Journal
General Trading Rules
Mark three Demand Zone and Three Supply Zone
Identify the Trend and mark the current Stage of the Trend
Trend will be determined on Daily Chart
Always use Candle Charts
Always use Multiple Time Frame Analysis
Price interval of Multiple Time Frame will be in multiple of 4 or 5
Check stock's Relative Strength to its sector, related stocks, and
the indices
Indentify sector showing strengths and sector showing weakness
Strategy will be to sell sector showing weakness and buy sector
showing strength
Will make a note of Global markets
Never trade Stocks on the day of Result
Follow my Risk management rules with religious disciple
Always honour Stop loss
Be aware of FII and DII buying and selling to have a feel of
Institutional activity and Markets Breadth (Advance Decline)
Always maintain a daily updated calendar on Economic reports ,
IIP Nos , Inflation , RBI credited policy , GDP no reporting
Always be patient, do not force a trade wait for your proper entries
and exits
Bull markets ignore bad news, Bear markets ignore good news
Be sure to show at least 100 bars per chart. Do not look too close,
200 bars are better
Strongest trends are when sector indices all move together
Always check sector moving the Nifty
Write down all of your trades as well as the reason for entering them
and reasons for exiting them
Always relax after a unsuccessful trade. Analyze the trade, figure out
what went wrong and learn from it
If you have three losing trades in a row, STOP TRADING! Figure out
what is wrong and resume only if you have identified a good trade
Trading Style
Intra Day Can devote plenty of time to trading
Can trade throughout the day
Comfort using Computers
Primary reason for trading is Income generation
Zero tolerance with overnight risk
Trading for a living – need a Daily Pay Cheque
Share Size Based on Position Sizing (1% Risk per trade)
Technology
Trading Platform Trade Tiger : Trading done on direct access
trading platform with no intermediaries
Trading Computer Minimum Two Monitors
Computers used exclusively for trading
Internet Minimum 2kpbs speed
Connection Always have a back with service provider of
National Repute. Will use Airtel and keep
Reliance as back up.
Have a second connection in Thumb drive
mode and nor wired connection
Speakers Will have a set of two speakers for buzz on my
Alerts and listen music of my choice
Additional Have a back up extension cord , power cable
Hardware for Monitor and CPU
Pre Market Schedule
Review www.sharekhan.com , www.moneycontrol.com for headlines,
look at Market Snapshot, Page One, Market Internals, Market Snapshot
Check www.sharekhan.com Calendars for Economic data releases,
Upgrades/Downgrades, and Earnings
Check www.moneycontrol.com map of market for sector activity
Check International news headlines from www.money.cnn.com ,
www.bloomberg.com
Check SGX Nifty Pre-Market Indicator for possible direction of market open
Check possible opening prices of stocks against trading plan for those stocks
Check forexfactory.com for world economic news
Post Market Schedule
Prepare Trade Log for the day’s Trade
Review charts of stocks in my watch list, look for patterns, check
multiple timeframes, and create trading plans for next trading day
Check Top Gainers / Losers , Highly Traded and Sector Indices vis a
vis Nifty
Review Market Internals and charts on indices
Document the trade for further learning
Daily Trading Rules
1 Trading decisions will be made based Triple Screen System
2 Candle will be analysed for Color , Shape , Size and Location
3 Triple screen time interval will be 5 min – 15 min and 60 min
4 Will study daily charts for deciding the Trend
5 Opening Gaps will be classified as Novice and Professional Gaps.
6 Mark Three Demand Zone on each time interval—5-15-60 min
7 Mark Three Supply Zone on each time interval—5-15-60 min
8 Will make a note of Higher time frame Supply and Demand
analyzing daily charts
9 Look for the market indexes and identify the correlation with the
stock, define index your going to use for correlation
Entry : Long Trade Identify the Pattern and Trend and Entry Type
Identify Demand Zone
Buy at Proximal Line . Stop loss at Distal Line
(i) Up: Higher Highs and Higher Lows
Trend on Daily Charts
(ii) 5 & 10 day moving average
crossover should be Bullish.
(i) Drop Base Rally
Pattern (ii) Rally Base Rally
Entry Type Entry :
(i) As prices enter the zone
(ii) As Prices are in the zone
(iii) As prices leave the zone
Note : Entry will be decided based on market
volatility
Entry : Short Trade Identify the Pattern and Trend and Entry Type
Identify Supply Zone
Buy at Proximal Line,Stop loss at Distal Line
Trend (i) Down: Lower Lows and Lower Lows
on Daily Charts
(ii) 5 & 10 day moving average
crossover should be Bearish.
Pattern (i) Rally Base Drop
(ii) Drop Base Drop
Entry Type Entry :
(i) As prices enter the zone
(ii) As Prices are in the zone
(iii) As prices leave the zone
Note : Entry will be decided based
on market volatility
Stop loss 0.50 % of the Capital Per Trade
Open Position Maximum Two at any given time
Trade Management Raise stop loss to cost once Price moves
to the extent of Initial Risk
Book 25 % Profit @ Target 1
Once Target 1 is reached raise stop loss
on remaining position to the demand /
supply zone on 5 min chart.
Book remaining profit @ Target 2
