(Short Term Trading For Beginners) – TRADE MANAGEMENT Lessons πŸ”₯πŸ”₯


– [Instructor] So in this
series on short term training for beginners, I’ll be
focusing on practical tips in terms of day trading
and short term trading. So, these are the trades that
I have taken in my own account and I’ll be showing you how you
need to manage these trades. So today’s topic is more on
lines of trade management, where I’ll be showing you
some very common mistakes that traders commit, once
they have entered the trade. – [Announcer] Click on the
subscribe button and bell icon to get instantly notified
when a new video is uploaded. Thank you for subscribing. – [Instructor] So in
this particular trade, I took entry based on the
method I have discussed in the VWAP indicator series. For those of you who
are new to this channel, I will link up all
those videos towards the end of this video. You don’t need to
understand as of now how I am entering
or exiting trade. Now since this video is more
on lines of trade management, I will be showing
you some key things or rather key steps
that you have to follow after you have
entered the trade. So, this was the trade in Maruti that I did on 23rd December. I entered the stock
somewhere around 7324 and later I exited
at 7355 and 7368. Now I will be showing
how I manage this trade because this was a
tricky trade to execute. Now on 23rd December, I
did spot this wide range bullish candle at 10 a.m. Look at the volume expansion
that has happened here. Now prior to this, there
are also couple of strong bullish range candles
that I can spot, where on each occasions
volume expansion was visible. Now in this entire range
there are also couple of bearish candles
that are present, but post these candles,
price did not move lower. So, at this particular point
I was inclined to go long but I did wait for
some more confirmation. So, that confirmation
came around at 10:15 or rather I think 10:10 a.m., and that is when I decided to
go long in Maruti at 7324. Now what happened after
this is pretty interesting and that is what I
want to focus upon when it comes to
trade management over
short term trading. So, when I entered
this stock at 7324, initially I was a bit skeptical. And the main reason for
this was this long wick that is present here, as
this candle was forming. Now for those of you who
watch my videos regularly, you always know that I
pay a lot of emphasis on how a candle closes. So, this was not a
strong closing as such, but as the candle was forming I did decide to take a trade because there was some
bit of upside momentum that was clearly
visible in terms of these strong bullish candles, and the volume
expansion that we saw as these candles were forming. So, when it comes to
assessing the entry conditions for this particular setup, it was not ideal
but I decided to go ahead still based
on the underlying
momentum in the stock. So, let us now see what happened
after I entered the trade. So the first candle that we
got here was a wide range bearish candle, but look
at the volume for the same. Volumes were not at all high. Now the next subsequent
three candles if you see were again wide in range, but there was no substantial
volume expansion happening. Rather with each
candle that formed volume did move lower. Now once these set of three
four candles were complete, price then moved from
7320 to about 7340. Now during this phase, there was some bit of volume
expansion that happened, but more importantly with
this particular candle, but again if you see how
this candle has closed, this candle is
again wide in range but while closing it has
again made a long wick here. Now this is what
I’ve marked here. Now whenever I spot
long wick on a candle, I am never comfortable
seeing that because that always represents
supply ahead in the market. So, at this stage, let me
tell you one of the most common mistakes that
I’ve seen beginners make while trading for
the short term. Now what they do is once
they have entered the trade, let’s say at 7324,
then they start reacting to every candle that
forms on the chart. So, for instance, there
will be some traders who will exit after seeing
this particular candle because they will start
to assume that price would start moving lower. Now this is completely
wrong when it comes to short term trading
and let me explain this. So, when I have
taken trade at 7324, I set a stop loss at 7260. Now anything that
happens in between has to be ignored. Now when I say ignored it does
not mean it is not relevant, what I mean is that you
need to analyze candles as they form, but you
don’t have to react with each candle
that is forming. Now this is an important point and do take note of this. Now there’s a subtle
difference in analyzing what is happening on
the chart and reacting to everything that is
happening on the chart. You should be open to analysis but don’t react as each
and every candle forms. That is not relevant. So, once this long wick
got printed on the chart, again I did see some
consolidation happening on the downside. Now again this wide range
candle here is not relevant because my entry
point was at 7324. Stop-loss was set at 7260 and hence this was just
something I was tracking as price was
developing for the day. So, over the next few minutes, we did see some of
these candles forming up which were relatively
on back of low volumes. And then we saw this expansion
happening on the chart. Now when this expansion
happened price moved from 7320 to again 7340. Volume were clearly
moving higher but again look at how
this candle was closing. There’s still presence
of this long wick here, which actually
represents supply ahead, and as a day trader
and short-term trader, this is never a good
sign to see on a chart. Now since you have
entered at this level and stop-loss is set here, you don’t need to react
to what is happening here. You just need to
analyze what is going on and then move forward
to see how price reacts. So, in this particular case,
price again traded sideways; volumes again moved lower
and then one more expansion you saw in terms of
volume where price again started moving higher. So, as this candle was forming, price moved from 7340 to 7370, but look at how
price closed again. Now as price moved higher, it again faced supply
at higher levels and it closed
somewhere at 7350. So, you again saw
this long wick here. Now when it comes to short-term
trading or day trading, when you start seeing these
long wicks on a consistent basis you will see some sort of
knee-jerk reaction happening. Now this is very common
and this plays out numerous number of times. You can go back and check
this on your charts. So, let me now play out
a 20-second clip for you to show you what happened as
Maruti moved ahead in time with these long wicks in mind. Now this is where
most of the traders commit a basic mistake, and
I want you to avoid doing this going ahead. So, here you see after
these series of long wicks, price did move higher
but then Maruti started to enter a phase
of consolidation. You would then see price would
make a knee-jerk reaction from 7370 to about 7320. That is price will move
lower in a straight line. So this is where you see this
wide range candle forming and this is where
now you’ve seen price has touched 7310 or 7315. That is the VWAP line. So, what usually happens here
is that if you’re trading long in this particular
stock despite of the fact that you’ve entered at 7324, you start to panic when you
see move in stock happening from 7370 to about 7320 in about 10-15 minutes. Now this is where a trader
starts to extrapolate this and he starts to think that
price would move further lower to something like 7240, 7250, and would trigger the
stop-loss that he has set. So, this is one of the
most common mistakes that I’ve seen traders making
is that they start judging price movement based
on what is happening in terms of sharp spikes that
happen during day trading or even over a period of
two to three sessions. Avoid making this mistake
because as of this particular stage, price is at 7332. It is still eight rupees
higher than your entry price, and don’t necessarily panic
seeing such wide range candles forming on the chart. By the way when this was
playing out in real time I did start to pay close
attention to these candles, but look at what these
candles are conveying. This candle here
initially moved lower but then it closed near the
middle point of the candle. So, you get this long tail here. Also look at the volumes here. There is hardly any volume
expansion happening. Now look at the
volume cluster here and these wide range candles
backed by huge volumes. This is nothing compared to
what you’ve seen in the day. Again look at this candle here. This actually takes
support at the MVWAP line, and again you see a
long tail forming here. Look at volumes here. Volume is again negligible. So, you have to combine
what is happening in terms of price
along with volume to see whether you
need to exit the trade or remain in it. So, after I saw this
playing out on the chart, I did not exit my position. As such I was long at 7324. So, I was still about eight
rupees per stock in profit. I just held on to the trade and I wanted to see
what happened as price
progresses ahead. Now make no mistake
that what I’ve shown you in this particular chart
takes a lot of practice and effort but more than that, what I would say is that
discipline is the factor that separates a good trader
from an average trader. So, if you are
following a method, let’s say a VWAP method
or any other indicator that you use or simple price
analysis stuff as well, you need to be disciplined
with how you enter, how you exit and how
you read price action as candles form on the chart. Now this in my
opinion is the key and these reactions that
you see on day trading or even on short
term trading basis this is completely normal and you have to learn how to
embrace and deal with this. So, let me now show you what
happened after price moved lower initially and
how I managed to exit the trade at 7358
and then at 7366. So, at this particular
level on the previous slide we saw that price
took support at MVWAP in form of a wide-range
candle with a long tail. So, again look at
the volumes here. Volumes have expanded
as this candle is formed and then price moved
higher from here. Now for the remaining
amount of time, let’s say for about
next 45 minutes price then started
moving sideways. So, even if I see such wide
range bearish candle forming here, I would still
not exit my trade because I have kept my stop-loss
at somewhere around 7250. After I spot this wide range
candle with the long tail, I would then move my stop
to somewhere around 7305. So, until and unless
price triggers this level, I would prefer to exit or
close out my positions. Now towards the
last half an hour, look at what happened
in the stock. Now price started moving
higher with momentum and while long wicks
were again visible, probably this was the reason
why Maruti did not move up 2-3% on 23rd because
overall structure was good for the stock,
but these all long wicks did represent some amount
of supply in the market, and hence you did not see
a strong momentum oriented move after I entered. Now as a trader I always
like exiting stocks on strength candles that is
on back of strength candles, and this is what
I did in Maruti. As these two candles were
forming as this particular candle was developing, I
did my first exit at 7355. And then on this particular
candle as it was developing I exited at 7366. So, the main reason that I
could still take out profit on this particular stock
on a day where momentum was not clearly visible and
trending move was not that clear was mainly because
I did not overreact to what was happening
in this phase. Now this is one of the
most common mistakes that traders make and you
will find this happening on a regular basis, even if you take out
some of your own trades that you have done, take
out your trading journal and you would have seen
how many times you react to let’s say one or two
candles forming on the chart or you have a knee-jerk exit
once you see price moving in a sharp manner that
is opposite to the trade you have taken. Now always remember that once
you have entered the trade and set the initial stop-loss, you then simply have to
analyze what is going on on the chart. Don’t get into the habit
of reacting to every candle that forms because that
is not the right approach when it comes to day trading
or short-term trading, and at all times you have
to combine price analysis with volume analysis. If you keep these
two concepts in mind, then more often than not you
will manage your trades better. Now in front of your screen, there are three playlists
that have come up. First is on intraday trading, all the videos that I have done
with respect to day trading. Second playlist is
about the trades that I have explained
using VWAP indicator and third playlist
is about price action using Heikin-Ashi candles. Now even if you have
seen these videos, I would strongly
recommend for you to watch all these playlist videos again. There’s a reason that I
have put all these videos in a playlist and in
a particular sequence, and make sure you follow it. See the thing is now I am
putting out lot of videos when it comes to practical
aspects of trading and unless and until
your fundamentals are clear about day trading
or short-term trading, you won’t particularly
understand what I am trying to
explain in this video or the subsequent videos
that I am going to do. So kindly consider
hitting the like button and sharing this video if
you find the content useful. Thanks a lot for
watching this video guys. Take care and be safe.

41 thoughts on “(Short Term Trading For Beginners) – TRADE MANAGEMENT Lessons πŸ”₯πŸ”₯

  1. VWAP Trading Playlist – https://www.youtube.com/playlist?list=PL9myHLrE5hrPMGyFDPv-IQmJCqxVwRaMf
    Intraday Trading Playlist – https://www.youtube.com/playlist?list=PL9myHLrE5hrOT8O9g-f8kb575b-KTsq0B
    Telegram – https://t.me/tradingwithtrend

  2. RESPECTED BROTHER,,,,Marry Christmas to you and entire family…. God bless you and your family with lots of prosperity, love, happiness….

    Today…my office is off….and so today I am one if your first student…

    Thanks….πŸ™

  3. We can also treat it as a throwback towards VWAP which I feel should always be taken into account before making a decision to exit.

  4. Thanks for your time and effort ST. A great video, every beginner needs to understand this concept but in real time its a bit difficult to hold a position during a fall. Trying to overcome this as per your advice. Thanks for your guidance and teaching in VWAP forum. I feel great to be a part of VWAP course and forum. Have a nice day. Thanks a lot.

  5. EXACTLY SIR AM ALWAYS REACTING EVERY SINGLE CANDLE. AM FOLLOWING A SIMPLE TRICK FOR EXIT. WHENEVER I TAKE A LONG TRADE I CHANGED MY CANDLE PATTERN TO HEIKIN ASHI CHART. AND I SIMPLY HOLD MY POSITION WHENEVER THE RED CANDLE COMES. I KHOW THIS IS NOT PERFECT EXIT. BUT I AVOID MY FEAR LIKE THIS

  6. Sir it has been a wonderful journey to know you.

    I would like to thank you for introducing me to two concepts volume expansion and trading in the direction of least resistance and it helped me gain confidence in day trading.

    You have put in efforts to explains us, thanks a ton.

    Hope you have a good end to the year.

    Using fractals and vwap working good for a while now.

  7. Thanks for reiterating Price and Volume analysis πŸ‘πŸ‘, these concepts will help the traders a lot. Looks like you caught a cold. Give some rest πŸ˜ƒ

  8. I respect you sir, but have you analyse what was the stoploss…?

    Successfull trade only works for stoploss and target aytomaticallly come with huge profit,low risk and high returns, no matters if stoploss hit, but when the target comes definately you come with profit only..

  9. Very Important aspect of trading, As i have faced this situation at initial stage of my trading, i can corelate my experience with this kind of situation. πŸ‘Œ

  10. you & your concept and videos teach me how to catch the fish, rather than how to eat the fish, day by day your subscriber increasing dont forget your old obedient student..! ahhhh 10q for giving another useful video guruji.

  11. As a beginer's point of view, i like very much your way of explaining far more better than many tutorial videos available. Thanks a lot.

  12. Thanks a lot for this Explanation Sir, it's very helpful, I believe trading is more about psychology than strategy πŸ’“πŸ’“πŸŒΊβœŒοΈ

  13. Dear Sir, I need one video on when to enter in trade , because when we use some indicator , and around 9:15 AM , price move sharply far away from the strategy indicator, so we should wait for retracement , And pyramiding buying. Thank you Sir

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