Subhashish Pandey, known as the Power of Stocks, is a highly successful trader and investor in the stock market. With a remarkable track record of making over 20 crores from trading over the past seven years, his mission is to inspire and educate more people to achieve financial success. As he takes the stage, the audience is captivated by his enthusiasm and passion for trading.
In his charismatic style, Subhashish urges everyone present to take their trading journey seriously. He emphasizes the importance of unwavering commitment, citing his own experience as an example. When he began his trading career, he never had any doubts or second thoughts about his chosen path. He had a clear vision of his goals and was determined to achieve them.
He shares that when he began his trading journey, he didn’t seek validation from family or friends. He believed in himself and his abilities, knowing that success would eventually speak for itself. This self-assuredness allowed him to navigate the challenges that came his way, and he encourages the audience to adopt a similar mindset.
He understands that acquiring knowledge is crucial for success in the unpredictable world of trading. He encourages people to be serious about their learning journey, as it will be the foundation of their future success. Whether they are new to trading or seasoned investors, he emphasizes that continuous learning is key to staying ahead in the market.
He stresses that true success in trading lies not merely in excitement but in a steadfast commitment to the craft. The early mornings, late nights, and endless hours of learning are not for the faint of heart.
Transitioning into the subject of investing, Subhashish debunks the myth that investing always yields profits. He candidly points out that even seasoned experts cannot predict with certainty which stock will skyrocket. Instead, one should focus on the importance of probability and risk-to-reward ratios. Subhashish shares his knowledge about the value of diversification and the need to spread investments across multiple stocks. By doing so, one increases the chances of finding that one stock that delivers significant returns.
He reveals a one-to-four risk-to-reward ratio that can be applied to various trading approaches, including intraday trading, options selling, options buying, and long-term investing. The key lies in identifying setups with high probability and lucrative risk-to-reward potential.
Subhashish compares trading to driving a car at high speeds. He skillfully highlights that just as we focus on the thrill of driving at high speeds, we often overlook what lies on the other side of the coin—the hidden challenges and risks. His message resonates as he emphasizes the need to be aware of both sides of the trading equation and to approach it with a well-prepared plan.
By using a powerful analogy involving Usain Bolt and running, Subhashish illustrates the significance of understanding the market’s behavior. Just as runners’ actions indicate their ability to complete a task, observing the market’s movements can provide valuable insights for traders.
Confident in his trading philosophy, Subhashish takes pride in doing what others shy away from. His preference for in-the-money option selling is based on the principle of finding potential buyers who are willing to purchase options at high prices. For him, this represents an opportunity to be the seller and capitalize on favorable spreads, resulting in significant profits.
He elaborates on his risk-to-reward ratio, a crucial element of his strategy. Subhashish is adamant about only taking trades with a risk-to-reward ratio of at least 1:5. This means that for every five potential losses, he anticipates making one substantial profit. By this approach, he confidently faces the market, knowing that he can withstand a few losses and still emerge profitable.
The common trading pitfalls where individuals fall into emotional traps, holding on to losing trades with the hope of recouping losses, he advises traders to have a clear plan and stick to it, steering away from emotional decision-making. His methodology involves making a calculated deal with the market, with an understanding that losses are inevitable, but the focus remains on maximizing profits.
The Power of Stocks encourages traders to embrace a pragmatic mindset and align their strategies with the principle of risk-to-reward. With his method, he empowers aspiring traders to step into the market with a plan, discipline, and confidence, while keeping their eyes on the ultimate prize – profitability in the world of trading.
He explains that Bollinger Bands indicate the average range of price movement, with 2 standard deviations covering the majority of price data.
Subhashish encourages to recognize that while the Bollinger Bands are a useful tool, they do not guarantee absolute accuracy. Instead, traders must grasp the broader concept of stretched markets and identify exceptional cases where price movements deviate from the average range.
He guides the audience’s attention towards spotting stretched markets where prices are at the top or bottom of the Bollinger Bands. He demonstrates how to use this knowledge to make informed trading decisions.
Subhashish underscores that his approach is not limited to a specific trading style. It encompasses intraday trading, investing, and buying and selling options. The flexibility of his strategy allows him to analyze all scenarios and understand the actions of both buyers and sellers in the market.
He highlights a crucial aspect—when the price moves beyond the Bollinger Bands, it presents a significant opportunity for potential profits. While some may interpret it as a market correction, he advises seeing it as a valuable chance to make money. He points out that market predictions are often made with varying degrees of accuracy, but identifying these stretches in the Bollinger Bands can lead to profitable trades.
The trader asserts that it’s essential not to rely solely on free resources, as his teachings hold exceptional value. He emphasizes that investing in quality education and gaining insights from experienced traders like him can significantly impact one’s trading success.
Subhashish outlines the straightforward rules of the strategy. Traders must observe the price movement in relation to the Bollinger Bands, looking for instances where the price extends beyond the bands. These stretches signal potential reversals or corrections in the market. The alert candle acts as a signal to start monitoring the market closely.
When the subsequent candle breaks the high or low of the alert candle, traders can initiate their trades. This simple yet powerful approach helps traders to identify favorable entry points and ensures they don’t miss profitable opportunities.
The speaker advises traders not to be overly concerned about achieving high accuracy in trades. Instead, they should focus on finding setups that work for them, even if they have a lower success rate. Traders should also avoid overtrading and be patient, waiting for the right setups that offer higher profit potential.
With a clear and straightforward approach, Subhashish demonstrates how to spot potential entry points and set stop losses to protect capital. He showcases trades that have yielded impressive returns, proving the viability of the strategy.
Addressing the fear of missing out on profitable trades, Subhashish encourages traders to stay disciplined and focus on money management. He explains that even small profits can lead to substantial gains over time, ensuring long-term success in trading.
The strategy’s adaptability to different timeframes and market conditions provides traders with the flexibility to capitalize on various opportunities. Subhashish empowers traders to trade with confidence, emphasizing that successful trading is not about hitting 100% accuracy, but rather about managing risk effectively.
He imparts a simple yet effective rule for traders to buy when the Bollinger Bands stretch completely, indicating potential reversal points. He confidently shares his own experience of rarely missing a top or bottom and emphasizes the significance of capturing such opportunities to attain substantial profits.
The essence of the system lies in risk management and maintaining a favorable risk-to-reward ratio. Subhashish advocates for not fearing losses but rather focusing on the tremendous gains that can be achieved by sticking to the strategy.
In options trading, there are simple rules to follow, especially when buying or selling options. When initiating a position, one must aim for a minimum 10-15% profit in their trading account. If this target is not met, it is best not to hold the position and instead cut the trade, reevaluating the next day.
For buying options, it is advisable to choose a time frame of at least 15 minutes. While daily buying is an option, it is recommended to initially start with intraday trades. Once a significant profit of around 500-700 points is accumulated in the trading account, one can consider holding positional trades. It is crucial to exercise caution and avoid rushing into trades merely because the market is open.
When buying options, one can focus on at-the-money or slightly out-of-the-money options. The stop-loss for such trades should not exceed 100 points. As for the target, it is best to aim for a minimum of 1-2 points above the buying price. However, going for higher targets is not encouraged.
On the other hand, option selling can be profitable too. Selling at-the-money options might scare some traders due to the possibility of higher losses. However, with proper risk management, one can cut losses when the trade goes against them.
When buying options, they recommend a minimum time frame of 15 minutes and suggest starting with intraday trades, eventually moving to positional trades after accumulating a substantial profit in the trading account. The individual advises focusing on at-the-money or slightly out-of-the-money options when buying and setting a maximum stop-loss of 100 points.
Regarding option selling, they encourage traders to overcome their fear and consider selling at-the-money options with proper risk management in place. They emphasize the need to remove fear and learn the skill of trading options to become a successful investor.
He emphasizes the importance of using set-ups, indicators, and trend-following strategies to make profitable trades. The individual highlights the potential of stocks like Sujlon that have given substantial returns, showcasing the success of their trading approach.
He advocates for a minimum weekly time frame for stock analysis, suggesting that long-term investing can yield significant returns. Also, express a willingness to patiently wait for favorable opportunities and are confident in their ability to make profitable trades.
He advises caution and patience when dealing with stocks like Yes Bank, waiting for the right entry point before making any moves. They highlight the potential for significant gains if stocks like Yes Bank go from 1 to 10, emphasizing the importance of proper timing and analysis.
Subhashish addresses the common concerns of traders about avoiding losses and increasing profits. The individual believes that taking fewer but well-calculated trades can lead to significant profits. They cite examples of substantial profits achieved through disciplined trading with small stop-loss values compared to the eventual profits earned.
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