Summary of How To Do Swing Basket #NK_Singh #nkstocktalk #nitishsirhilegamilega

Swing Trading Tips

• Definition: Swing trading involves holding a position for a short term, typically between one week to 25 days.
• Initial Investment: Start with a maximum of 30% of your capital and monitor performance over three months before increasing investment.
• Diversification: Invest in at least 10 to 12 different stocks to reduce the probability of loss.
• Profit Booking:
  • Monitor overall performance of the basket.
  • Exit positions when any stock falls below a certain percentage (5-10%).
  • Use trailing stops for managing exits.

Stock Selection Process

• Criteria for Selection:
  • Focus on stocks at their 52-week high for momentum.
  • Check for a "band blast" on the monthly timeframe (indicating strong price movement).
  • Ensure the Relative Strength Index (RSI) is above 60 for technical strength.
• Avoid Low Volume Stocks: Only select stocks in the equity category, avoiding ASM (Additional Surveillance Measure) and B-category stocks.

Trading Strategy

• Mindset: Emphasize the importance of emotional discipline and risk management in trading.
• Long-term Focus: Maintain a long-term perspective rather than focusing on immediate gains.
• Patience: Avoid FOMO (Fear of Missing Out) and develop a habit of waiting for the right trading opportunities.

Final Thoughts

• Learning Curve: Trading requires time and practice; expect a learning period of several months to years.
• Market Awareness: Stay informed about market conditions and be cautious, especially when near significant moving averages like the 200 DMA (Daily Moving Average).

Notable Locations/Products/Speakers

• Speaker: NK Singh, who shares his insights on swing trading.
• Concepts: Swing basket, 52-week high stocks, band blast, and RSI (Relative Strength Index).

Notable Quotes

— 18:24 — « Trading is never a matter of assuming the future, it is a matter of probability. »

— 20:21 — « Avoid FOMO. FOMO means fear of missing out. »

— 21:01 — « Trading is like that, it is a mind game, it is an emotional game, no matter how technical you are. »

— 24:42 — « The day you learn to save your loss, profit will come. »

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