In today’s rapidly evolving financial landscape, the stock market has emerged as a compelling career choice for individuals seeking opportunities for growth and financial success. However, one of the primary challenges faced by aspiring traders and investors is the lack of recognition and acceptance from society regarding the stock market as a viable profession.
Fortunately, there are exemplary individuals like Mr. Kunal Sarogi, who have not only made a successful career in the stock market but have also become well-known figures, guiding and educating others for over 15 years. Coming from a family with a rich tradition in the share market, Mr. Sarogi has been instrumental in reshaping perceptions and showcasing the stock market’s potential as a legitimate career option.
The value of learning from someone like Mr. Sarogi cannot be overstated. His extensive experience and expertise in the field can provide invaluable insights into the intricacies of the stock market, enabling aspiring individuals to navigate the complexities with confidence and make informed investment decisions.
For those contemplating a career in the stock market, it is crucial to understand that this profession demands dedication, continuous learning, and a strong understanding of financial markets. With the right mentorship, guidance, and a commitment to ongoing education, individuals can unlock the potential of the stock market and establish a rewarding and fulfilling career in this field.
Embarking on a journey to pursue higher education abroad, Mr. Kunal Sarogi had a world of opportunities at his disposal. Many individuals opt for an MBA program abroad with the intention of securing a job in their chosen field. However, Mr. Sarogi’s path took an intriguing turn. Instead of seeking employment, he immersed himself in the captivating world of the stock market and went on to establish a successful career as a trader and mentor.
In a world where top business schools’ graduates aspire to work on Wall Street, Mr. Sarogi’s unconventional choice becomes all the more fascinating. The stock market offers unparalleled excitement and a unique advantage over other professions. Unlike traditional businesses that are subject to industry-specific downturns, the stock market allows participants to tap into opportunities across various sectors. This ability to ride the waves of global booms ensures that individuals in this field remain adaptable and can capitalize on emerging trends.
Moreover, the stock market presents a formidable challenge, pitting traders against some of the world’s brightest minds. This high-stakes environment fosters a constant drive for learning, innovation, and strategic thinking. It is a battlefield where intellect, instincts, and comprehensive market knowledge are put to the test.
Choosing the stock market as a career offers a sense of freedom and limitless potential. It transcends the boundaries of specific industries, allowing individuals to thrive regardless of sector-specific challenges. By participating in the stock market, one can actively engage with global market dynamics and seize opportunities wherever they arise.
In today’s era, our competition in the stock market extends beyond fellow traders and investors to include formidable opponents: machines powered by algorithms. These algorithms, crafted by some of the world’s most brilliant minds, pose a significant challenge as we navigate this dynamic landscape. It reminds me of a story involving Sir Isaac Newton, renowned for his exceptional intellect and groundbreaking discoveries in physics. Even he, with his profound understanding of celestial movements, stumbled in the stock market, recognizing the complexity of human behavior. This tale underscores the inherent challenges of the stock market and the role of intellect in this domain.
What makes the stock market truly captivating is its reliance on the power of the mind, rather than external factors such as caste, gender, or appearance. It is a realm that operates on meritocracy, where talent and skill take precedence over superficial attributes. This exciting aspect of the stock market evokes a sense of pride, especially in our culture where financial acumen runs deep. In our country, the ability to perform calculations and understand complex financial concepts is ingrained from an early age. Finance and economic matters have become an integral part of our heritage and cultural fabric.
Now, more than ever, people are recognizing the stock market’s significance and embracing it seriously as a profession. The convergence of our innate financial aptitude, the allure of a meritocratic environment, and the growing acceptance of the stock market as a viable career choice have set the stage for exceptional talent to thrive.
However, amidst the rise of algorithms and machine-driven trading, it is crucial for market participants to adapt and augment their skills to remain competitive. The stock market demands continuous learning, adaptability, and a deep understanding of market dynamics. By leveraging our intellectual prowess and honing our financial acumen, we can navigate the challenges posed by machines and capitalize on the opportunities that arise.
Behind the scenes of Kunal Sarogi’s guidance on the opening show lies a comprehensive and diligent research process, aimed at identifying promising stocks and empowering investors. The question arises what fuels his analysis, and how can aspiring traders learn from his approach?
In the fast-paced world of the stock market, where thousands of stocks vie for attention, it is easy for newcomers to feel overwhelmed and lost amidst the crowd. Many tend to chase the latest buzz or news surrounding a particular stock, allowing themselves to be swayed by discussions and hype. However, Kunal Sarogi emphasizes the importance of diligent homework and preparation.
To recognize potential opportunities during market hours, the groundwork begins even before the market opens. Research and analysis are conducted the night before, ensuring that vital information is already at hand when trading begins. This proactive approach helps navigate the increasingly complex and ever-evolving market landscape.
Understanding that the market’s complexity will continue to grow, Kunal Sarogi underscores the necessity of hard work and continuous effort. Staying ahead of the curve requires consistently honing one’s skills and adapting to the changing dynamics of the stock market.
While Kunal Sarogi guides viewers on the opening show, his ultimate satisfaction lies in empowering others to replicate his strategies and achieve success. The joy he derives from seeing others replicate his methods is greater than the pursuit of wealth itself. His vision is to inspire and foster the growth of future generations of successful traders in India.
The key principle is to identify sectors exhibiting momentum across the board. Instead of focusing on individual stocks driven by temporary news or events, Kunal Sarogi seeks sectors where a collective upward movement is observed. This approach increases the probability of witnessing sustained momentum and potential trading opportunities.
For intraday trading, the top-down approach is instrumental. It involves selecting the sector first and then pinpointing the most suitable stocks within that sector. By analyzing charts from the previous day, traders can identify sectors that have demonstrated sustained momentum over multiple days. This enables them to participate in the ongoing trend and capitalize on potential opportunities.
It is important to note that momentum typically extends beyond a single day. For instance, at the time of writing, government-owned companies, particularly government banks, have experienced significant price surges. Such momentum tends to last for several days, providing traders with ample opportunities to participate and profit from the upward trend. However, success in intraday trading requires confidence and conviction to hold positions, even if price fluctuations occur in the short term.
Kunal Sarogi’s top-down approach in intraday trading underscores the importance of sector selection and sustained momentum analysis. By adopting this strategy, traders can make informed decisions and increase their chances of capitalizing on broader market trends. Remember, the stock market is dynamic, and a well-prepared top-down approach can help navigate its complexities, uncover potential trading opportunities, and enhance the chances of success in intraday trading endeavors.
A key element in achieving success in intraday trading lies in the ability to identify sectors that are outperforming the market. Kunal Sarogi emphasizes the significance of analyzing various indices before the market opens to gauge sector performance. By examining the charts of different indices, traders can discern which sectors are displaying stronger traction and outperforming the broader market.
The primary criterion for selecting a sector is its outperformance compared to the market. If a sector is exhibiting faster upward movement during a bullish market or relative strength during a bearish market, it indicates the sector’s potential for sustained success. This information serves as a valuable signal, guiding traders towards sectors that may yield better opportunities for short-term trades.
Analyzing indices and sector charts provides a straightforward and accessible method for identifying outperforming sectors, even for those new to charting or market analysis. Platforms such as the NSE website or trading software like TradingView offer the necessary tools to visualize these charts and assess sector performance.
Once a sector exhibiting strong outperformance is identified, traders can delve deeper into individual stocks within that sector to uncover potential winners. By focusing on sectors with a track record of outperforming the market, traders increase their chances of identifying stocks that have the potential to deliver profitable intraday trades.
The ability to identify outperforming sectors is a vital aspect of achieving success in intraday trading. By analyzing indices and sector charts before the market opens, traders can pinpoint sectors that display stronger traction and outperform the broader market. This strategic approach allows traders to concentrate their efforts on sectors with a higher probability of delivering profitable trades.
When it comes to intraday and short-term trading, Kunal Sarogi highlights the importance of focusing on specific sectors that are exhibiting momentum and outperformance. By participating in sectors with strong traction, traders increase their chances of making profitable trades and achieving consistent performance. Engaging in sectors with limited activity and lacking significant momentum often leads to inconsistent results.
In trading, sector selection takes precedence. Traders should identify sectors that are outperforming the market and show signs of sustained growth. By concentrating on these sectors, traders increase their probability of finding stocks that can generate favorable trading opportunities.
On the other hand, when it comes to investing, the emphasis shifts to individual stock selection. Investors prioritize assessing the quality and fundamental aspects of stocks, irrespective of their sector. Investing requires a more comprehensive evaluation of the company’s financials, management, and long-term growth potential.
Regardless of whether one is trading or investing, liquidity plays a crucial role. In intraday trading, liquidity is paramount. Trading in highly liquid stocks ensures smoother execution of trades and minimizes slippage. Slippage refers to the difference between the expected price of a trade and the actual executed price, resulting in potential profit erosion. By trading in liquid stocks, traders can avoid excessive slippage and maximize their trading efficiency.
Furthermore, maintaining a focused watchlist of selected stocks enhances trading success. By monitoring a limited number of stocks, traders can develop a deeper understanding of their behavior, patterns, and price movements. This focused approach allows traders to capitalize on opportunities within their chosen stocks and optimize their trading strategies.
Achieving success in trading requires careful sector selection and adherence to liquid stocks. By focusing on sectors that display momentum and outperformance, traders increase their chances of identifying profitable trades. Additionally, trading in liquid stocks minimizes slippage and ensures smoother execution. Whether trading or investing, a systematic approach to stock selection and liquidity assessment lays the foundation for consistent performance in the dynamic world of the stock market.
Timing is a crucial aspect of short-term trading, and being aware of the optimal time zones for trading can significantly impact success. Kunal Sarogi highlights two key periods that offer the most potential for profit-making: the initial hour and the closing of the market.
During the first hour of market opening, there is a surge in activity and new breakouts occur. Stocks experience significant opening price movements, prompting traders to exit their positions. This hour presents ample opportunities for traders to capitalize on these dynamic market movements and initiate profitable trades.
Similarly, the closing hours of the market tend to exhibit heightened volatility, creating favorable conditions for short-term traders. Analyzing data over extended periods reveals that the most significant profits are often generated during the opening and closing times. By recognizing and aligning their trading activities with these periods, traders can enhance their overall profitability.
Additionally, conducting a thorough audit of past trades is essential for continued success. By examining previous trades and identifying recurring mistakes, traders can gain valuable insights into their weaknesses and areas for improvement. Self-reflection and learning from past experiences are vital for refining trading strategies and avoiding repetitive errors.
Short-term trading requires a focused mindset and adherence to specific rules. Traders must acknowledge that their intention is solely short-term and be mindful of the time constraints associated with this approach. By understanding the nuances of short-term trading and making necessary adjustments, traders can enhance their performance and achieve consistent results.
In the world of trading, success is not measured by winning every trade but by achieving a favorable success rate. Kunal Sarogi emphasizes the need for focus on stop-loss, target, and exit strategies. It is crucial to understand that not all trades will be profitable, and striving for a high success rate is more realistic than aiming for perfection.
The key to adopting this mindset is to approach trading from the perspective of “passing” rather than expecting to win every time. By accepting that not all trades will be successful, traders can alleviate the pressure and focus on maximizing the number of profitable trades. This shift in mindset promotes a more relaxed and practical approach to trading.
Research plays a vital role in the trading process. Kunal Sarogi suggests starting the research process the night before by analyzing indices, identifying sectors that are outperforming, and narrowing down to specific stocks showing strong momentum. However, the research does not end there. Traders need to consider additional factors beyond sector selection, such as liquidity and potential catalysts, to make informed decisions.
Moreover, Kunal Sarogi shares a valuable life lesson, money is often made when facing challenges. Traders should be cautious of trades that appear too easy or straightforward. Ease of buying may indicate a crowded trade or a lack of potential profit. Conversely, embracing difficult trades that require thorough analysis and critical thinking can lead to greater opportunities for success.
Kunal Sarogi emphasizes the importance of focusing on trades that present challenges, as they often offer greater potential for profit. For instance, if a stock opens high, showing a significant increase, it may seem tempting to buy. However, the ease of buying in such a scenario may not yield the desired results. Conversely, a stock that opens lower after a decline may present an opportunity for a more favorable trade.
Risk management plays a vital role in short-term trading. While indicators and strategies are important, they do not guarantee success without a strong focus on managing risk. Risk management may not be as glamorous as other aspects of trading, but it is a fundamental concept that can make or break a trader’s performance.
Furthermore, it is essential to prioritize the direction of the market. Trades should align with the overall market trend to increase the chances of success. If the market is in a downtrend, it is prudent to look for sell-side trades. However, if shorting is not preferred, traders can still focus on long-side trades during positive market conditions. Additionally, there are days when it may be beneficial to refrain from trading altogether, especially when the market is experiencing significant downward movement.
To formulate a view on the market direction, analyzing the index becomes crucial. By observing the 30-minute chart of the index, traders can gain insights into whether the overall market sentiment is positive, negative, or sideways. This information serves as a foundation for making informed trading decisions.
Kunal Sarogi advises traders to begin their analysis by making a view of the index, preferably by observing the 30-minute or 60-minute charts. This initial step allows traders to gauge the overall market sentiment and direction.
Next, traders should focus on specific charts that exhibit notable outperformance compared to other sectors. Taking the PSU Bank Index as an example, one can observe a significant upward trajectory, standing out prominently among other sectoral indices. By comparing the charts, it becomes evident that the PSU Bank Index has been consistently outperforming.
To systematically identify outperformance, traders can utilize tools like the comparative RSI indicator or platforms like TradingView. These methods help to quantify and visualize the extent of outperformance. However, it is essential to note that short-term traders should primarily focus on recent days’ outperformance rather than long-term trends, aligning with their specific trading horizon.
Short-term trading involves holding positions for a few days, and therefore, analyzing recent outperformance provides a more relevant perspective. By actively seeking sectors or stocks that demonstrate strong short-term outperformance, traders can increase their chances of success.
While many traders focus solely on popular indices like Nifty and Nifty Bank, it is essential to broaden the scope and consider all available indices.
By examining multiple indices, traders gain valuable insights into sector-specific performance. Sarogi personally tracks an extensive list of 750 actively traded stocks, including those listed on the Nifty 500 and Nifty Micro Cap Index. Additionally, he pays attention to individual stocks within each sector and maintains a watchlist accordingly.
For derivative traders, it becomes even more critical to concentrate on liquid stocks that are listed in the derivatives market. By familiarizing themselves with key stocks in each sector, traders can effectively narrow down their focus and make informed trading decisions.
Once a sector is identified, attention shifts to individual stock selection. Traders must analyze the charts and identify patterns or trends that indicate potential trading opportunities. Sarogi emphasizes the need for vigilance and acknowledges that uncertainty is inherent in trading. However, by focusing on strong sectors and closely monitoring related stocks, traders increase their chances of success.
It is crucial to remember that short-term trading is dynamic and requires adaptability. As market conditions change, traders must stay nimble and adjust their strategies accordingly. By maintaining a disciplined approach to sector and stock selection, traders can position themselves for profitable trades in the short term.
Kunal Sarogi sheds light on the importance of identifying sectors that have experienced significant moves throughout the day and are on the verge of a fresh breakout. These trades often prove to be golden opportunities, particularly for BTST (Buy Today, Sell Tomorrow) trading.
While engaging in BTST trading, it is essential to consider the longer duration charts before making any decisions. Although the 15-minute chart serves as a valuable tool for intraday trading, traders should consult the 30-minute or 60-minute chart when planning to hold a position overnight.
Sarogi provides an example using the chart of Polycap, emphasizing the importance of analyzing both price and volume patterns. In this instance, the stock exhibited substantial volume growth and a breakout during the last hour of trading, indicating a potential BTST opportunity. Additionally, the stock had been outperforming consistently in the previous days, and a long-term resistance level at 2800 had been breached.
Traders who recognized this opportunity at 3:30 pm could anticipate a gap-up opening the following day. As predicted, the stock opened with a gap and continued its upward trajectory, ultimately reaching the 3000 level. This exemplifies the strength and potential rewards that can be derived from carefully executed BTST trades.
However, it is important to acknowledge that not all trades will yield positive results. Stop-loss orders are an integral part of risk management and should be utilized without hesitation. Traders should approach losses as a cost of doing business and focus on achieving an overall favorable risk-reward balance.
One common challenge faced by traders is the reluctance to implement stop-loss orders, often due to the fear of incurring losses. It is crucial to understand that losses are an inherent aspect of trading and should not deter one’s determination. By accepting losses as part of the game, traders can maintain a resilient and fearless mindset.
It is essential to strike a balance between risk and reward, ensuring that potential gains outweigh potential losses. Those who have experienced consistent profits understand the importance of implementing stop-loss orders without hesitation.
Successful trading requires a combination of discipline, risk management, and astute analysis. Kunal Sarogi highlights the common pitfalls that lead traders to abandon their potential for success, with overtrading emerging as a significant obstacle. The most crucial element in maintaining trading discipline is keeping positions small, especially for those working in derivatives markets where lot sizes are fixed. By limiting quantity and gradually venturing into the cash market before exploring derivatives, traders can mitigate risks and achieve long-term success.
While sound stock selection forms the foundation of profitable trading, there is room for improvement through the use of indicators and chart patterns. Sarogi stresses the importance of understanding these tools to enhance analysis and decision-making.
By incorporating these principles and constantly refining their approach, aspiring traders can embark on a journey towards becoming better, more informed traders who are well-equipped to navigate the complexities of the financial markets.