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
Objective No 2

Objective No 3

Objective No 4
Objective No 5
Objective No 5

Apply the techniques learned during my trading courses

and acquire the ability and confidence to successfully
trade on a daily basis
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.
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.
Will only trade liquid stock in Group A or Nifty Stocks
Target Rate of Return 5% per month
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

Share Size

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
Based on Position Sizing (1% Risk per trade)

Technology
Trading Platform
Trading Computer
Internet
Connection

Speakers
Additional
Hardware

Trade Tiger : Trading done on direct access

trading platform with no intermediaries
Minimum Two Monitors
Computers used exclusively for trading
Minimum 2kpbs speed
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
Will have a set of two speakers for buzz on my
Alerts and listen music of my choice
Have a back up extension cord , power cable
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 days 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
2
3
4
5
6
7
8
9

Trading decisions will be made based Triple Screen System

Candle will be analysed for Color , Shape , Size and Location
Triple screen time interval will be 5 min 15 min and 60 min
Will study daily charts for deciding the Trend
Opening Gaps will be classified as Novice and Professional Gaps.
Mark Three Demand Zone on each time interval5-15-60 min
Mark Three Supply Zone on each time interval5-15-60 min
Will make a note of Higher time frame Supply and Demand
analyzing daily charts
Look for the market indexes and identify the correlation with the
stock, define index your going to use for correlation

Entry : Long Trade

Trend

Pattern
Entry Type

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
on Daily Charts
(ii)
5 & 10 day moving average
crossover should be Bullish.
(i)
(ii)
Entry :
(i)
(ii)
(iii)

Entry : Short Trade

Trend

Pattern
Entry Type

Drop Base Rally

Rally Base Rally

As prices enter the zone

As Prices are in the zone
As prices leave the zone

Note : Entry will be decided based on market

volatility
Identify the Pattern and Trend and Entry Type
Identify Supply Zone
Buy at Proximal Line,Stop loss at Distal Line
(i)
Down: Lower Lows and Lower Lows
on Daily Charts
(ii)
5 & 10 day moving average
crossover should be Bearish.
(i)
(ii)

Rally Base Drop

Drop Base Drop

Entry :
(i)
(ii)
(iii)

As prices enter the zone

As Prices are in the zone
As prices leave the zone
Note : Entry will be decided based
on market volatility

Stop loss
Open Position

0.50 % of the Capital Per Trade

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