If thus strategy is applied properly in any stock, if you understand the strategy, then you can make50-50% returns in a month. It sounds a little weird to hear, old people will not believe, but when you see the live example, you will also believe. The strategy should be applied. I am not saying that stop loss will never be applied.
Stop loss will also be applied, but if you have the possibility of getting 50% return in a month, then the strategy will be little bit. And what will be the percentage of stop loss according to you? Sir, I always do not work in a ratio of 1 to 3. So if I give you a stop loss of 8%, then you will reach a minimum target of50%, up to 1 to 6. Very nice sir, very nice. Please understand swing trading first. What is swing trading?
Middle way of intraday trading and positional trading. In intraday, we buy for a day, we have to be in the market full time, in the market, sitting in front of the screen, there you are earning money against your time. The efforts you have put are getting money. If you leave even a swing or a small movement, then your money for that day is over. So there is a lot of hard work requirement.
Let’s talk about positional, that is, we left after buying for 3 months, 6 months, 1 year. We need a lot of research and analysis. Stop loss is big, we get emotionally attached, we get a loss. And the middle way of both these methods is swing trading. You buy for roughly 3days to a maximum of 3 to4 weeks. If you like the stock very much, you can hold it fora few months.
That’s it. Here your returns are expected in general swing trading. Roughly8% and stop loss is between 3% to 4%. This is a special strategy. You can say that this is a master-blaster strategy of swing trading. That’s why we have more targets here. That’s why we are discussing it. Basic rule, the IPO stock you want to study should be in the last 6 months IPO.
Take it for a maximum of 9 months to 10 months. You are saying that the IPO that has come in the last 6 months or 9 to 10 months, which can be said in one way, the recent IPO has gone, we are going to use this strategy in those IPO stocks. It is perfect. It should be done at least for a month.
Like some examples, if people want to understand. In old examples, there is Lama Organics, Oldham Developers, this strategy is fully applied in all of them. We will also give examples. The stock should be above 300 rupees because we will not compromise with quality.
Cheap things are cheap, but we want good. We do not want cheap. There should be a daily volume of more than 1 crore. This is our rule. Here we will do this rule by 50% and will easily agree up to 50 lakhs. Because you will know why I said this in the strategy. Usually you will see this in every strategy.
I want volume of 1 crore. Her ewe is okay even at 50 lakhs. In simple language, I will tell you the strategy in the starting. It is a very simple strategy. Then we will understand its entire analysis. The strategy is that in a tight range, your IPO stock will get stuck. 5 to6%, maximum 7% range.
In that range, you will see that this IPO stock will zigzag with thievery low volume without volume and you will think that it is a waste stock. Remove it from your portfolio. Remove it from the watch list. But all of a sudden, a day will come when it will break the upper side of the range and give a breakout with a momentum of 3 to 5%.
The volume will be exceptionally high. If we show this, you are talking about a stock of IPO. So now the first requirement in this stock is that we have matched all this. That it is 6 months old, above 300 rupees daily volume. You said we will compromise. By the way, our general rule of 1 crore is that there should be daily volume.
But if the volume of 50 lakhs is happening daily, then we will agree to it. After this, it has become first in the tight range. Means it was getting correct. Absolutely. First it was falling. After falling, now it is moving 5% up and down. Perfect. How much time is in the frame? How much ever it can be.
Sometimes it stays for a few weeks, sometimes it goes up to a month. The bigger the better for you. Osos let’s say that the bigger it is, it has been in the range of 5% for the last 2 months.5, 7, 8% maximum. Now what do we want after that? There will be a day when a big beautiful candle will be made.
If you look at the volume below, then the volume of the last 10 days will not be there. You will get the volume of 1 day. So this means that I am assuming that some institution has entered in this. Some big player, institution, as you are saying. Perfect. He has entered. So he gave me a big green candle and he has broken his 5% resistance support.
And after that, when do we have to take entry after the breakout? As soon as it breaks out, you have to take entry on the same day. Maximum take the entry the next day. If you are taking after that, then stop. Then don’t take. You have to take it within 2 days. And why will it work on the breakout? Because the institution cannot buy everything in 1 day.
It has to buy again and again. As soon as it comes back to this level, it will buy big and give you momentum. So here the institution will buy slowly, so you are talking about entry. If it is close by chance, towards the higher range, the stock that is still running, thesis an additional point. Even if it is not there, it will work. But this is an additional point.
If the lifetime of the stock is high, then it is an added advantage. This will happen only when the general market trend is running in full uptrend. Let’s assume that the price was around 400 rupees and it fell. Now it is showing 450. That means it has broken its 5%resistance. 410, 415, 420. You will not get a range of more than this.
But it is breaking resistance. So this is the best thing for you. Okay, it’s a good thing. This is a very rare situation, so I put a star mark ahead. This is a very rare situation, but it is Avery good situation. The general market trend should be in uptrend. So from here it will be clear to you. In uptrend, you will usually get this setup applied.
Or if it is coming back from downtrend to uptrend, then you will get a lot of this. Suppose it has gone downtrend, there is destruction everywhere, we are very angry in the portfolio. Then when the market will start again, this will be a very important strategy. Okay, perfect. Why is this strategy applied? And why did we talk about these new shares? Right. Because their float isles. Okay. Now a new share has come.
Now so many shares have come again and again. Whatever it is, there is not Avery big float. And the float is also there. What does free float mean? How many shares can be traded in a market today? Total outstanding share, all the shares that have been decided by its management that this is my total share, minus some restricted shares. What can be restricted?
For example, a person has become a board of directors, has become an employee, there was some tie-up with some institutions because of which they were restricted. Softer all those restricted shares, we get free float. Here, free float will be even less in the IPO stock because those who buy institutions, buy mutual funds, cannot sell for more than 6 months. Okay.
So that’s why we are saying, look at the last 6 months, there are already a lot of restrictions to sell on people. If the momentum has come, then it means that some other big institution is trying to buy here.
And anyway, if there is a good genuine IPO, you also cover the IPO very lovingly, then there are a lot of begonia, institutional investors, who have not yet got the money to invest in the IPO
. They were waiting that once the pain comes, I get a chance, then I will sell properly. So that list is very ready. And why is it beneficial for you? Because you have limited stocks. How many will you get? The last 6 months IPO or 9 months IPO? 5, 10, 15, 20. So prepare a watch list of them and fit this strategy in in it is very easy.
The second point is very easy. And the most important point is that your risk reward ratio is very nice. We are talking about 40-50% returns. We are talking about5-8-9% stop loss. You will get a very good success ratio in the uptrend market. How much will you get if we use this strategy 10 times?
In the uptrend, you will get above 70%, in the downtrend, you will get below 30%. So don’t use it by mistake in the downtrend. Wean keep it in the notice in the uptrend. And if it goes uptrend from the downtrend, then it will go up to 80-90% because fresh seeds are coming out at that time. What happens when there is a marketing downtrend?
Suppose there is a jungle, there is a fire, there is destruction. No wall the old trees have been destroyed. New trees are growing. There are many chances of growing in new trees. So if you think about this new tree, as soon as it is growing, you have invested in it, then you get all the plants above. Right. Amazing. Very nice. Snow let’s understand the entry. The day the move has come of3-5%, you have to enter that day.
Maximum 1. If it is more than that, then stop. Then wait for a little pullback from the beginning. Otherwise, your risk to reward ratio will not be in your favor. I hope you are making notes because you are listening. We think we understand everything, but when you write something, it goes into your subconscious mind.
And when the actual opportunity comes in the market, then what you have written is in your subconscious mind, then that trigger will be yours. Then tag me and Pushkar. Yes, tag me on Instagram too. Yes, you also share your story. If you share on Instagram, if you share on Twitter, then I will especially share it on Twitter too. Even on Telegram, if someone has made very nice notes.
And by the way, if someone is making genuine notes, What a thing! It will be fun. It is necessary. I mean, we also sometimes make such good notes, which we have not written, we add two points in it. If you add this, then your success ratio will increase. So why not? It shows how serious people are to learn. And we are motivated.
Serious is a lot Amazing! Yes. You have a lot of notes. I am also getting more. No, sir. You are more serious. That’s why you called us back. Yes, yes. If you have become serious, as we understand, you can buy in the range of anticipation. But if you are using this strategy for the first and second time, then don’t take the risk of anticipation. Right.
If you have become an expert, you have earned returns 5-6 times, you have gained confidence. Look, the main issue is of conviction. Courage is precious. And it is necessary to keep conviction on conviction. If you have got both, then you can think of buying in anticipation. Otherwise, buy after you get confirmation.
The main problem of buying in anticipation is we can see in the chart that it is going to happen. It hasn’t come in the chart yet. We haven’t seen it on the chart. We can see it in our imagination. Now it will happen. Look, a candle will come here. We get stuck in that sometimes, especially if we are not there.
So give yourself some time to grow the market. Then you can buy in anticipation. Right. Stop loss. The candle on which you have taken entry, usually it will be a 5% candle,2% below that. That’s why I was always telling you the range of 5-8%. The candle on which you have taken entry,2% below that candle, stop loss. If you have entered in anticipation, then the range you had,2% below the lower range of the range, your stop loss.
Usually,5-8% range will come out of both. And we can trade 1 is to 3in the least risk to reward ratio. Sir, there is a stop loss of 8%. We are talking about a target of 40-50%. You are working for 1 is to 4. Amazing. So you took 4 trades. You profited from one of them. So you are making a profit. Right. As simple as that. Be careful about position size. Right. I will not put all my life’s earnings in 50% returns. No. Absolutely not.
Your position size will be, maximum 10% of your capital.10% of stop loss. So only 1% of your total capital is at stake.100 rupees. You will not invest more than 10 rupees in one stock. Multiply it by 10%is the maximum stop loss. Usually, we are talking about 8%. But here, stop loss of 1 rupee. Only 1% of your capital is at stake.
You do not have to invest more than that. If someone has capital of 1 lakh rupees, then he can lose more than 1000 rupees. Right. And to become, from 10,000 rupees, he can make 5000 rupees. Roughly 5% returns.1% loss on capital,5% return and 1% loss. As simple as that. And if you are able to use this strategy again and again, and you are able to make it in IPO stocks by swing trading, then you are talking about good returns. Yes, why not. It is a very good return.
It is a master blaster of swing trading strategy and very unconventional. Right. You will not hear people talking like this, that we are talking about IPO strategy. That’s why you are here. No, sir. We are also learning from the market and trying to do something. Finally, take care of profit booking.3 days to 10 days or 3 weeks to 10 weeks.
If you are doing swing trading normally, then you can go in days. If you like positional trading, and you want to use this strategy for positional trading, then you can take it in weeks.3 weeks to 10 weeks exit, or 3 days to 10 days’ exit, in swing trading and positional trading, you can use it as per your convenience.
I will say that you can use trailing stop loss in this, because the profit percentage is more, so it can be beneficial for you. Absolutely. So, Annand sir, the IPO strategy that people have learned, give some live examples of this too. People will like it. You are absolutely right, Pushkar. Until there are no live examples, it is not fun.
So, let’s take such live examples, with which many people can connect. Let’s start with Angel. Angel’s IPO came recently. It’s been a while since it came. But when the IPO came, immediately after the Isothere can be any drama, we don’t care about it. Then you will see here, roughly 4-5 months, where the stock is at a very low volume. Absolutely.
It is consolidating. The strategy that we are learning, is a strategy of price and volume action. So you have to see the price and volume. Without one, the other will not be of much importance. So both have to be taken care of. In a very small range, you will see here, it is consolidating at a low volume.
And this candle, which is roughly of 4th May, it breaks out with a drastically high volume. Right. And because this is an IPO stock, there is not much holding in the market. It is a very closely held stock. When there is a breakout in this, and a big move starts, our 50% target is, in a month, it will double or triple in the next 10-15 days.
What happened in front of you, is in front of you. There was a rally. No sir, it was a blast. It was a blast. It was a blast. But, keep in mind, the period of consolidation, suppose it is 2 months,3 months, you also think, suppose I make you sit in a room, for 1 month, 2 months,3 months, in that room, when you come out, you will also be in full power.
Right. Similarly, someone was purchasing in a low volume. Now, how did we know that someone was purchasing? As soon as we got such a big candle, and with a good volume, it means that he thought, I have waited for a long time, I have to buy the entire stock. He bought it quickly, and gave you a direct breakout. And gave a big move.
Amazing. Let’s go to the next example of Kemps. The same industry as Angel. Here you will see, after the IPO, immediately there was a little pressure. A little time passed, a little move was given, then suddenly, volumes came here, and here in between, suddenly,2-2.5 months,3 months, volumes disappeared. Right.
Suddenly, all of a sudden, on 16th of April, almost 6-7-8-10% of a big candle, drastically high volume, almost 10 times more than the normal volume, it gave you a move. And immediately, the stock gave you a return of more than 50%, but if you see slowly, it gave you a long return, and more returns. Right.
The point is, it has almost doubled from here.2000-4000 stock, in the next 2-2.5 months. The 50% target you had, in 1 month, that too, you easily achieved in the stock. Next, let’s talk about Happiest Mind. It has done up to 4x, but in our strategy, we need 50% returns, which is our focus. Right. Very low volume.
After listing, the stock is getting worried in a very low volume. Nothing is happening anywhere. No volume, no price action, you will see it in a small range, zigzagging, and then suddenly a day comes.17th of Fear very big candle, in fact, you got the hint of this already. You started getting it from almost 12th of Feb, with a good volume. It had already given a breakout. And immediately, in the next 1 month, the stock doubled.
In 2-3-6 months, it has already doubled 4x. Now, it’s up to you. When you have a good stock, especially if you have earned money in that stock, it’s not necessary that you have to wait for the stock to double. Once you have taken 50% returns, after that, the stock will give you multiple opportunities to add. Like, this stock, on a 20-day moving average, once, twice, three times, it has bounced with support again and again.
So it has given you the opportunity again and again to focus on its, in this way, a good multi-bagger stock will give multiple times returns. Provided you have caught its initial 1 or 2 big moves. Great. Root Mobile. With a very low volume consolidation, this breakout candle, and in the next 4 days, your 50% returns will be complete.
In just 4 days, right? In 4 days. You don’t have to wait much. We are talking about 1 month. But when a big party actually wants to buy, you don’t have to wait much. It will do its job automatically. In 3-5 days, you will get 50% returns immediately.
In fact, more returns than that. After that, the stock breaks. We don’t care. Later, it increases again. We don’t care. Our IPO strategy that we have made, because of that, we have to catch the moves that come to us. We don’t want to catch any random move.
Last example, Stove Craft. Here, you see, very low volume. Earlier, there were some volumes. But now, it is a 2-month time where nothing is happening. In a small range of 5-7%, the stock is zigzagging. And when this range, on 19th of May, the next day after my birthday, it breaks. And I gave this stock specially in my birthday gift. I remember last year.
Because it was my birthday, and it immediately broke this range. I openly shared this birthday gift to everyone. Study this. You will get a lot to learn. And what happened is, you got 50% returns. From 500, it became almost 1000.In the next 2-3 months, you will see the complete rally. If we talk about the move, you immediately got a good move.