1/Don't hate on any style: • Admire the fact that money can be made from intraday, scalping, positional, option buying, selling, futures, etc • Try to understand which one fits you the most and apply that, then ignore the rest!

2/ System with a R/R of minimum 1:3: • Here is a system that works for investing, scaping, positional, options buying and selling, futures etc. • The R/R of this set up in intraday is 1:3 & for investing can go beyond.

3/ Why EMA over SMA? : • Exponential moving average is used, as it places a greater weight and significance on the most recent data points.

4/ 5EMA moves very close to the prices: • Mean reversion theory: Asset prices usually tend to go back to normal or average levels after an extreme price move. • Prices routinely oscillate around the mean but tend to return to that same average price over and over.

5/ 5EMA set up for investing explained in the video:

6/ Steps to use 5EMA for investing: -Use monthly TF on charts -Add the 5EMA indicator -5EMA should not touch the high of the monthly candle; we'll refer this as 'Alert candle' -Entry point: following month candle crosses the high of the Alert candle -SL: low of the alert candle

7/ How to find the next Reliance? (fresh IPO's): • Post IPO (i.e. new stocks) track them using 5EMA set up in monthly for investing to identify the next multibagger. • Select 5-6 stocks for investing. • Pyramid the quantity as and when you are winning.

8/ When to book your profits on investment?: • When the investment doubles or triples, book out the original invested amount •Stay invested with the profit, when the stock is making higher highs. • Prefer shorting only in indices instead of stocks (on longer term TF)

9/ Sizing your investment makes the big money than identifying entry: • If a particular stock takes your SL twice or thrice then delete it from your watchlist. • Investing is all about sizing & holding with patience. • Subasish plans his SL as 10% of the investment value.

10/ Taking SL is better than becoming a forced long term investor: • Price is the lead indicator, so no need to bother about fundamental analysis • Be ready to take one or two SL 's instead of giving forever time to let the stock prove its worthiness.

11/ Steps to use 5EMA for intraday selling: - Use 5min TF - Add 5EMA indicator - 5min candle low shouldn't touch 5EMA - we'll refer this as Alert candle - Entry point: following 5min candle breaks the low of Alert candle - SL: high of the alert candle & within Rs. 7-10k per lot

12/ Rules for 5 EMA, intraday selling: - Entry should be done within 10am - Re-entry should be only once for stocks & within 10am - Re-entry on indices can be done throughout the day - Plan 5 trades a day - Target is 1:3 - If SL of 7-10k per lot is too high then switch to cash

13/ Selling happens with a flow & buying usually happens slow: • Be indifferent to the color of the color just stick to the alert candle rule and breaking of the alert candle. • 5EMA set up on 5min TF is only for selling. • Selling always creates a snowball effect.

14/ Example of 5EMA in BNF in intraday 5mins charts:

15/ How to filter the stocks?: • Once the pre market gets settled at 9.07 am check the stocks that open with a gap up with 2-3%. • Click on the link to get the pre market data of stocks click on % change to sort it. https://www.nseindia.com/marke...

16/ Rules for 5 EMA set up intraday buying: - Use 15min TF on charts - Add 5EMA indicator - 15 min candle high should not touch the 5EMA, we'll refer this as Alert candle - Entry point: following 15min candle crosses the high of the Alert candle - SL: low of the alert candle

17/ Lets understand more with another example on the same: • 15min TF for buying. • 5min TF for selling. • Monthly TF for investing.

18/ One set-up which can be used across all time frames: • This set up helps for scalping. • This set up works for positional traders as well. • This set up works in investing as well.

19/ Never change SL's during the trade: • For option selling and buying he sets a 10% SL of the prem value. • Eg: If the option premium is at Rs.350 he will set a SL of Rs. 30-40.

20/ Practice to understand the nuances of this strategy: • Initially, go for 1:1 R/R. Later on, as and when you understand the nuances, you can wait for 1:2 or 1:3 or tweak it as per your findings. • If SL is too huge just ignore the trade as there is always another trade.

21/Start with a single lot then gradually scale up: • Backtest this strategy for at least a month: • Thereafter, scale up i.e. bet more on this system if you are winning.

22/ Points on Psychology: • While in drawdown, use the opportunity to learn from mistakes to bounce back. • Comparing yourself to those who perform better than you will leave you disappointed. • Feel empowered that you get multiple shots in the market to perform better.

23/ Faith can move mountains. : • Take an oath: Say loudly *I'll be a Trader!* • Say loudly again: *I'll be a Trader!* • Say loudly & this time mean it: *I'll be a Trader!*

If you enjoyed this thread, here's another one which might be helpful: https://x.com/niki_poojary/sta...

Source of this 5EMA strategy thread: https://www.youtube.com/watch?...

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