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     TRADING SYSTEM
 
 
   WELCOME || TRADING SYSTEM || TRADING SIGNAL || PSYCHOLOGY || PORTOFOLIO SIZE || TRADING PHASE ||
    STOCK PICK HISTORY || INVESTMENT BASIC || WEIGHTAGE ALLOCATION || GOLDEN RULE || PE MYTH

WEIGHTAGE IN TRADING & INVESTMENT:-

Make this as your Personnel choice, It depends on  the Style of Individual, Time Frame of Investment, Market Trend, Risk Reward Analysis as per the guidance given below. It will catalyze the thought generation process to think and plan the Investment all together differentially.

What Weightage should I give, for Investment, Day Trading & Trading on cash and F&O?

It is interesting & difficult question to answer as to what weight age should  one give for allocation of funds to  Trading & Investment, and then to know how does it helps individual to  synchronized with market trend. We say It is a personal choice  and it solely depends on individuals the time frame of investment and the risk bearing capability of individual.

However for emerging a thinking approach, while investing in so called risky stock market one has to take in to consideration  following:-

Trend of the Market.
Type of Position to be taken.
Time frame of investment.
Timing of investment.

From above it can be seen that importance of each one of them is different for different types of  Market Trend, Investors/ Traders and most importantly the time frame where in they want to risk there money.

We have given below rough guideline which we feel should broadly hold good for different type of market participant.

SN Trading Type
TREND
BULLISH
BEARISH
TRADING
Active Trader Investors Institutions Active Trader Investors Institutions Active Trader Investors Institutions
L S L S L S L S L S L S L S L S L S
1 Intraday 50 10         5 60         40 40        
                                       
2 Daily 40   70   30     30   80   30 15 5 50   20 10
                                       
3 Weekly     30   70   5   10 10   10 60   50   70  
   
PROFIT BOOKING AND NEW POSITION
S N Type
BULLISH
BEARISH
TRADING
1 Active Trader.
Intraday Traders to book profit  for long position all in a day. More no of Long position than short position
Intraday Traders to book profit  for all short position all  in a day. .More no of short position than long position
Equal no of long and short position with small margin. Trade as per the market direction both long and short.
2 Investor
More no of  Long  position than Short position

Book Profit  for long position on weekly signals. On violation of uptrend line  Sell  all you have.

More no of Short position than Long position.

cover short position on   weekly signals. On violation of downtrend line cover all short position.

Take small no of delivery on weekly signals.

If the market is trading at the top of the Bull Phase keep away do look for profit booking.

If the market is trading after Bear phase do take investment position as per weekly and monthly chart and weight of evidence.

Keep big pitcher in front of you.

3 Institution. Sell after predefined target are achieved and market valuation and sentiment. Buy  as per the predefined target after a stiff fall as per valuation and future earning potential As per valuation and market sentiment and future prospect action to be taken they are the driving force for the market demand and supply to  Start and end  Bull and  Bear phase .
  Who Takes the Lead? Timely Long Entry & Exit Timely Short Entry & Exit Timely Intraday Long & Short
Stock is King Cash is King Day Trading on Technical is King
Fundamental & Technical Analysis important Right Valuation and exit is Important. Technical Analysis and Trading Skill is important.

Now one can  look into the  different  types of market trades  namely Long (L), Short (S) Position based on market trend and further split the risk capital  for Intraday, F&O, Position Trading and Penny Stocks on  Intraday, Daily  and Weekly  bases for  Active trader, Investors and Institutions as given below.

Do take it as guideline for  overall balancing the trade while trading.

SN Trading Type Sub Group Active Trader Investors Institutions
1 INTRADAY Intraday 40    
  Futures 10    
  Options      
  Position Trading 25    
2 Daily Position Trading 20    
  Futures 5 50 30
  Options   15 10
  Penny Stock      
3 WEEKLY Position Trading   30 60
  Futures      
  Options      
  Penny Stock   5