15 Learnings from Power of Stocks: 🧵 Collaborated with @niki_poojary
1. "Inside candle Strategy" • His go-to strategy • Great risk reward • Identify on 15 min candles • Trade all without fail In every video, he talks about this strategy and trades the same too.
2. "Price ko samjane ka koshish karo." • Everything is based on price action • No need to check OI data • Even the psychology of traders can be understood via price Focusing on only one thing such as Price will shorten the learning curve to become a trader.
3. "Support & Resistance" • Jab market sharp fall krta he to V shape me recover nahi hota. • It will face resistance at many levels • SImilarly when market rises it wont go down 90 degree • It will face support at multiple levels Just look at these levels.
4. "M & W patterns" • Spot M pattern near the resistance • Spot W pattern support • Check for the W pattern for entry. • First pullback me hum log buy nahi karenge. • Pehle W pattern banne do, confirmation aane do. These two are also his favourite patterns.
5. "Pullbacks" • 1st pullback is never for counter-trend trades • After an uptrend, never sell in the first pullback • In a downtrend market, never buy in the first pullback Don't get trapped in the first pullback in any trend.
6. "Counter-Trend" • During trends trades with the trend can be taken without confirmation but counter only after PA
7. "Vertical upmove doesn't sustain" • Correctly identified bitcoin crash • Vertical upmoves are not healthy • Logic is that since buyers have huge profit • When they book profit markets fall a lot • Probability of being trapped if you buy after an extended move is high
8. "Consolidation ke baad Trending" • After a trending market we should expect consolidation • After a consolidating market we should expect trending • Check his last week video • Correctly identified a strangle week last week
9. "Money management is very important" • For eg, If you've made 1 lakh profit • Divide your profit into 3 • Risk it in 3 trades • Trade only when setup comes
10. "Risk-reward" • Don't trade without good R:R • Risk reward should be minimum 1:2 • Expiry day only 1:1 is okay • Option buying should have 1:4 RR • To make up for the losses
11. "Importance of round levels" • Round numbers becomes a level to watch for • Book profits near round numbers • They are good targets • Buy as close to a support/round number
12. "Opening price compared to closing price" • After a day low close if the market opens gap up sellers are trapped look to go long post PA confirmation • After a day high close if the market opens gap down buyers are trapped look to go short post PA confirmation
13. "Breakout Timings" • Breakout before 12 PM • Mostly won't sustain. • Timing of breakout is important • Morning breakouts usually fade • Afternoon breakouts are genuine Should know timings when trading breakouts.
14. "World Indices" • Also no need to watch all fuss around world indices • Just have a trading plan • If things work according to your plan • Then take a trade Watching world indices doesn't help and he never talks about them as well.
15. "Trading takes time" • Take it slow n learn things 1 by 1 • Don't try to do everything at once • Can get leverage once you're a good trader • Work in silence, let your work make noise • Don't compare your journey to others • Try to on work single strategy only
By the way, we write threads every week. Follow to never miss them. See past threads here: @AdityaTodmal & @niki_poojary
