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How to Buy a Stock

General Tips

  • Try to Keep your watchlist as clean as possible, don't add too many stocks to watchlist, if you have too many stocks to watch try to trimdown list to 10-15 stocks at max
  • Buy stock within 1-2% of breakout point, don't buy extended stocks
  • Your stoploss should not be more than 5-6% for any stock
  • Mindfull of risk reward ratio, Higher stop-loss also mean low risk reward ration so choose stock with lower risk
  • Use Trading view app instead of browser for multiple display, so you can keep eye on index and stocks at same time
  • Use Trading view alerts to keep track of breakout on intraday timeframe, that's your buy/sell signal
  • Keep working on 5min chart breakout database to train you eyes on intraday buying

Before market opens

  • Create separate list for ready to buy stocks
  • Setup kite alert for these stocks

During Pre-market

  • If stock is about to breakout that you can place GTT order on live market

Live Market

  • If you have placed GTT order then you can just wait for it to get executed
  • Try to buy stock before it breakout, so you can get good risk reward ratio, but if you miss that then it's better to wait for stock to breakout and then buy on pullback
  • Don't do fomo buying, if you miss one breakout then there will be another breakout in next few hours, so be patient and wait for good setup

Why Intraday for buying?

  • Because when stock is just about to breakout and close to 10EMA, at morning we can take very low risk entry in stock with 2-3% of stoploss
  • when stock breakout after this entry and at day end it closes with 3-4% profit then we can carry that position for swing trade or positional trade for next few days
  • when stock breakout didn't sustain then sometime we'll exit at small loss/small profit and it's okay
  • Earning gains, sometime stocks is just close to breakout but everyone is waiting for earning results, you'll start buying when results is out and stock is start to going up, it's normally very quick trade good gain in 1-2 day

Things to take care when buying on intraday

  • First 15 mins are normally very volatile and chances of stock sellout or reversal is very high so be causius only buy in first 5 min when market health is really good and is uptrending other wise you wait for small base on 5 min chart so you can manage your losses
  • It's okay to miss out on trades, you'll find multiple breakout in first hours, so best idea to only buy low risk stocks don't do fomo buying

When to sell on intraday

  • when at end of day you don't have good profit cusion on your stock and market condition is not that good then it's good idea to close that trade
  • when your stock make big gain after buying then looses most of it's gain basically squat down, then it's good idea to sell half/full depending on market condition