Trading Plan.

Trading Plan

Prepared by : Vishal Subandh

Dated : November 6th, 2013

Plan Your Trade Trade Your Plan

Trading Objective: To become a professional trader and trade for a
living.

Trading Plan Goals

Profit Related (Financial Goals)
Goals should help you evaluate your progress and give you a
financial target to strive for.

Goal No 1 Earn 5% per month on short term trading

Goal No 2 Earn 30% per annum on long term trading portfolio
including swing trading futures and options

Non Profit Related (Personal Goals)

These goals should help to create a positive and successful
environment for trading

Goal No 1 Attend one trading course per year to keep up the

current market trends
Goal No 2 Read a book once every two months on trading
psychology
Goal No 3 Take a one-week non-trading-relating vacation to clear
thoughts

1. My trading style is ______________

a. Intraday
b. Swing
c. Position

2. Asset classes that I will trade in will be ______________

a. Equities(Cash)
b. Index Futures
c. Stock Futures
d. Commodity Futures
e. Currency Futures
f. Options

3a) I will trade the markets __________ days in a week

3b) I shall trade the markets from ___________am/pm to

_________am/pm

4. My initial margin amount will be Rs 5 lakhs for intraday and 5

lakhs for swing post which I will increase the margin after
 monitoring my performance upto Rs 10 lakhs intraday and 10
lakhs in swing.

Technology

Trading Platform Trade Tiger : Trading done on direct access

trading platform with no intermediaries
Trading Computer Minimum Two Monitors
Computers used exclusively for trading
Internet Minimum 2Mbps speed
Connection Always have a back with service provider of
National Repute. Will use Airtel/Tata
Docomo/Reliance dongles as a secondary
connection incase of any power failures.

Speakers Will have a set of two speakers for buzz on my

alerts and listen to calm and soothing music of
my choice
Additional Have a back up extension cord , power cable
Hardware for Monitor and CPU

Pre Market Schedule

Check www.sharekhan.com Calendars for Economic data releases,

Upgrades/Downgrades, and Earnings
Check www.moneycontrol.com map of market for sector activity
Check SGX Nifty Pre-Market Indicator for possible direction of market open.
Source:www.calloptionputoption.com
Check USD Index and mark supply and demand zones on the big picture time
frames. Can be useful when correlating the same with the Nifty Index

Post Market Schedule

Prepare a trade log for all trades taken during the day
Scan for potential opportunities for next day using www.icharts.com /Trade
Tiger Scanner
Look for the strongest and weakest stocks traded on that particular day and
identify bigger time frame supply and demand zones for intraday/swing
opportunities for the next trading day.
 Intraday Trading Rules

1 Load 3 charts on the screen with time frames 15, 60 and Daily
2 Start with the bigger time frame preferably 60 mins and identify
the trend either using price action/ moving average(50SMA) or
trend lines
3 Mark Supply and Demand zones on the 15 mins time frame which
will be your trading time frame. Use of odds enhancers is critical
while marking the zone.
4 Check for Location on Daily time frame using step 3 and avoid
going Long very HIGH on the location or SHORT very low on
the location
5 Place entry, stop loss and target orders in Trade Tiger using
bracket orders.
6 Once target 1 is achieved move stop loss above breakeven price
for the next target.

Long Trade Short Trade

Identify Drop Base Rally and Rally Base Identify Rally Base Drop and Drop Base
Rally patterns on the 15 mins time frame Drop Patterns on the 15 mins time frame

Buy at proximal line and keep stop loss Sell at proximal line and keep stop loss
below distal line above distal line

Mark supply zones to take t1,t2 etc on Mark demand zones to take t1,t2 etc on
the 15 mins time frame(trading time the 15 mins time frame(trading time
frame) frame)

PS: Refer Annex I

Swing Trading Rules

1 Load 3 charts on the screen with time frames 60,Daily and Weekly
2 Identify trend on the daily time frame using price action/moving
average(50SMA)/ trend lines.
3 Mark Supply and Demand zones on the 60 mins time frame which
will be your trading time frame. Use of odds enhancers is critical
while marking the zone. (Arrival, Time spent at the zone and Risk
Reward Ratio)
4 Check for Location on Weekly time frame using step 3
5 Place entry, stop loss and target orders in Trade Tiger using
bracket orders.
6 Once target 1 is achieved move stop loss above breakeven price
for the next target.

Long Trade Short Trade

Identify Drop Base Rally and Rally Base Identify Rally Base Drop and Drop Base
Rally patterns on the 60 mins time frame Drop Patterns on the 60 mins time frame

Buy at proximal line and keep stop loss Sell at proximal line and keep stop loss
below distal line above distal line

Mark supply zones to take t1,t2 etc on Mark demand zones to take t1,t2 etc on
the 60 mins time frame(trading time the 60 mins time frame(trading time
frame) frame)

Risk Management Rules:-

 1. Intraday:

For intraday trades in my first week of trading I will risk not more than 0.5%
of my trading capital allotted per trade and make sure I am simultaneously
in not more than 3 open positions at a time. Second week onwards I will
gradually increase the risk to 1%.

2. Swing:

For swing trades in my first week of trading I will risk not more than 1% of
my trading capital allotted per trade and make sure I am simultaneously in
not more than 6 open positions at a time. Second week onwards I will
gradually increase the risk to 2%.

PS: I will always ensure that a STOP LOSS is in place for each and every
trade I take in Trade Tiger and will recheck the same to make sure it is in
place.

3. I will avoid trading stocks on the day of results

4. I will always honor my stop loss

5. Always be patient and will not force a trade and wait for proper entries
and exits

6. Take screenshots of all my trades and document them to check my

performance on a monthly basis.

7. Will always relax after an unsuccessful trade. Will reanalyze the trade
and figure out what went wrong and learn from it.

8. If I have three losing trades in a low I will take a small BREAK from
trading.
ANNEX I:

TARGETED FINANCIAL COMPONENTS OF MY INTRADAY TRADE

SYSTEM (Monthly)

5,00,00
Capital 0
Total Trades 40
Success rate 50%
Risk per trade 0.50%
2,500.0
Risk per trade 0
Reward to Risk ratio 2.00
No. of profitable
trades 20.00
No. of losing trades 20.00
5,000.0
Avg profit per trade 0
2,500.0
Avg loss per trade 0
50,000.
Net P/L 00
Rate of return 10.00%

PS: The above return includes all your trading costs.

Formula based Excels Sheet enclosed(ANNEX III)

 You can customize the figures as per your financial goals and
objectives.

ANNEX II:

TARGETED FINANCIAL COMPONENTS OF MY SWING TRADE

SYSTEM(Monthly)

5,00,00
Capital 0
Total Trades 20
Success rate 50%
Risk per trade 1%
5,000.0
Risk per trade 0
Reward to Risk ratio 3.00
No. of profitable
trades 10.00
No. of losing trades 10.00
15,000.
Avg profit per trade 00
5,000.0
Avg loss per trade 0
1,00,00
Net P/L 0
Rate of return 20%
PS: The above return includes all your trading costs.

Formula based Excels Sheet enclosed(Annex IV)

You can customize the figures as per your financial goals and
objectives

ANNEX III:

Assets Multiple
Trading Style Intra-
day

Trading Capital 500000

Risk per trade (as 0.5%

% of capital)

Risk per trade 2500

( Rs)
Exposure per As per
trade position
size
Asset Class Instrument Position Size Margin
( no of
contracts)

Equity Stocks Stock 100000

Dependant
Futures Nifty/Stock depending on 100000
Futures lot size
Index Nifty 4 100000
Options Nifty/Liquid 50000
Stocks
Commodities
Gold Mini 1 30700
SilverM 1 29000 Any 3
Crudeoil 1 60000
ANNEX IV:

Asset Class Instrument Position Size ( no Margin Exposure

of contracts) per Trade

Equities Stocks 200000 200000

Futures Stock depending on lot 60000 425000
Futures size
Index Nifty 2 60000 600000
Options Nifty/ Liquid 50000
Stocks

Commodities
Gold Mini 1 30700 615380
SilverM 1 29000 487290
Crudeoil 1 61000 595000