BOOK SUMMARY: HOW TO MAKE MONEY IN INTRADAY TRADING

 

How to Make Money in Intraday Trading: A Master Class by One of India's Most Famous Traders

Publisher: Vision Books (5 May 2018)

Print Length: ‎ 350 Pages

Author: -  Ashwani Gujral   Rachana A. Vaidya

The book starts with its introduction which reflects the ideas illustrated inside the book. This also ignites a curiosity to read the book. In this chapter, we read the main pillars of trading, about money management, about the mind-set of a trader and the trading methods.

We read the author's background as, Ashwani Gujral is one of the famous market analyst and trading expert. He is also a regular market commentator in CNBC TV18. He is B.E. from MIT Manipal INDIA and MBA from Georgetown University Washington DC USA.

Rachna A. Vaidya is a full time trader. She is B.E. an MBA. She worked in Amul industries, Kotak Mahindra Bank and Reliance Industries.

This book is totally dedicated to them who are struggling to find very good results in trading who are looking for a future in trading but before taking a deep dive let's understand why so many traders fail in the stock market, though there is so much information available on the Internet. Most of the novice trader comfort their mind on certainty as they are trained to seek certainty but within less time they come on the way to face uncertainty and hope that they know what is going to happen next and this hope become a way to throw them in failures category. We have to accept that markets are uncertain there is no perfect strategy or theory that can work all the time. They trust the news or an insider trip and get into the verge of failure.

Trading is wonderful skill and can be converted into a business. In this business we can be our own boss. We decide our salary, we do not have to complete target or work whole day. The best thing in this business is its transparency and equality, though there are so much many scams but there is very less corruption.

In intraday trading success comes to those who are very dynamic, alert, disciplined and has a calm mind, those who make their strategy to digest victories, survive defeat and can give a befitting response to both.

In this world there are so many people who have made history and millions in the trading. If we think that it is very hard to conquer then maybe we are not right. But we also have to understand that market never forgive and even punish who commits mistake, it gives punishment in the form of losses.

Now we read about basic of market, market does not move in the desired form are in a straight line but goes in the up and down manner. There are two types of markets defined in this book, one is trending market it may be either uptrend or downtrend and second one is ranging market it moves in up and down -up and down fashion.

There are so many techniques out there to understand support and resistance but moving average is unique and has versatile qualities. It provides a dynamic support or resistance to the trend. And sometime suggest the trend of the market in the chart. Moving average works on the basis of price action and it is a lagging indicator.

To analyse a chart, there are so many studies can be seen, in this book we read about candles, its body, and its high -low price. There is so many type of candle and pattern but the writer here make it simple for us to understand it in only three types of candles, under sized candle or Lilliput candle, giant sized candle and rejection or reversal candles with either green or red colour.

Pivots are formed purely on price action. It helps us to understand the nature of chart on the basis of bullishness or bearishness. Any trade moving above the  central pivot can be understand as bullish and similarly any trade moving below the central pivot can be understand as bearish. It also helps us to take some action based on signal generated in the chart.

Our chart can be more efficient if we add central pivot range. In CPR there are three lines, one line above the central pivot also known as upper boundary it is based on higher price, and another line bellow the central pivot which is lower boundary based on lower price. Below the CPR there are support pivots and above the CPR there are resistance pivots.  There can be seen ranging trend in wide CPR and there can be seen a trending trend in narrow CPR.

We also read about stop loss, let us understand, any trend which is coming downward and take support on any pivot and we see all the condition to take a long trade if it goes towards upside then our stop loss will be somewhere below the support or the last candle after downward trend, similarly for the opposite end. But we also have to understand the loss involved in the form of price and manage loss which we can bear maximum for a particular trade.

As per information our setup for intraday trading will be a chart in which we apply CPR, pivot points, moving average. Moving average with twenty period works better and sometime we can use moving average with ate periods to stay with trend. So let’s make money in intraday trading…

 

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