Introduction :-
Welcome to this article in the article we study about some special strategy which is profitable for Indian Stock Market and also in Stock Trading.
So first to first again I am saying welcome to this article now keep learning and careful learning and enjoy every movement with learning.
🧠 What is a Strategy in Stock Market Trading?
In the stock market, a “strategy” is a planned approach or method that a trader or investor uses to make buying or selling decisions to achieve profitable results. It includes a set of rules based on technical analysis, fundamental analysis, market sentiment, or a combination of all.
✅ Example Based on the Image You Provided (BOROSIL RENEWABLES LTD):
This image shows a short-term intraday breakout strategy, which includes:
- Entry Point: The trade begins after the stock breaks a consolidation range on high volume.
- Stop Loss: A safety level is set below recent support or moving averages to limit losses.
- Target: A predefined profit level, often based on resistance or risk-to-reward ratio.
📈 Why Strategy is Important?
- Minimizes Risk: Helps protect capital through stop-loss rules.
- Provides Discipline: Prevents emotional decisions.
- Improves Consistency: You follow the same setup every time.
- Fits Market Conditions: Specific strategies work better in trending, volatile, or range-bound markets.
🛠️ How to Make a Strategy in Stock Market Trading?
Creating a successful trading strategy involves combining market knowledge, technical tools, and disciplined risk management. Whether you’re trading NSE stocks, NIFTY 50, or mid-cap stocks like BOROSIL RENEWABLES, a clear and rule-based strategy increases your chances of consistent profits.
✅ Steps to Make an Effective Stock Market Strategy:
1. Define Your Trading Style:
Decide if you are an intraday trader, swing trader, or long-term investor. This helps choose the right timeframes and tools.
2. Choose the Right Stocks:
Pick liquid and volatile stocks from NSE like NIFTY 50, Bank NIFTY, or active mid-cap stocks. Use screeners to find stocks showing breakouts, high volume, or news-based movement.
3. Use Technical Indicators:
Apply indicators like moving averages, support and resistance, MACD, RSI, or volume breakout to identify entry and exit points.
4. Set Entry Rules:
Example: “Enter when the stock breaks resistance with volume above average and a bullish candle closes.”
5. Set Stop Loss Rules:
Place stop loss below the last swing low or a moving average to limit your losses.
6. Define Target Levels:
Use recent resistance levels or Fibonacci extensions. Maintain at least a 1:2 risk-to-reward ratio.
7. Backtest Your Strategy:
Use past charts and price data to test if the strategy would have worked. Tools like TradingView help analyze historical performance.
8. Paper Trade Before Real Money:
Practice your strategy in a demo account or by tracking it on paper before trading real capital.
9. Manage Risk Properly:
Never risk more than 1–2% of your capital in a single trade. Use position sizing calculators.
10. Track and Improve:
Maintain a trading journal. Record your trades, wins, losses, and lessons learned to keep improving your setup.
🧭 How to Start Stock Trading for the Indian Market
Open a Demat & Trading Account
You need a Demat and trading account with a SEBI-registered stockbroker like Zerodha, Upstox, Groww, or Angel One.
Complete KYC Verification
Submit your PAN card, Aadhaar card, bank proof, and a selfie for identity verification. Most brokers offer fully online KYC.
Fund Your Trading Account
Transfer money from your bank account to your trading account to start buying stocks.
Learn Market Basics
Understand key terms like NSE, BSE, Sensex, NIFTY 50, intraday, delivery, stop-loss, and order types.
Use Trading Platforms
Start exploring platforms like Kite (Zerodha), Upstox Pro, or Groww to place buy/sell orders.
Start with NIFTY 50 or Liquid Stocks
Begin trading with high-volume and less risky stocks like HDFC Bank, Infosys, or Reliance.
Practice with Virtual Trading or Small Amounts
Avoid big losses in the beginning. Start with small capital or use paper trading apps like TradingView.
Learn Technical and Fundamental Analysis
Study charts, trends, support-resistance, and company financials before making any trade.
Follow Market News and Updates
Track news on NSE India, Moneycontrol, or Economic Times Markets to stay updated with market trends.
Stay Disciplined and Track Your Trades
Maintain a trading journal, follow risk management, and don’t let emotions control your trades.
Best Profitable Strategy For Stock Trading?
The best profitable strategy is according to me or my analysis is for stock trading use also technical analysis for trading like that.
First you learn some chart pattern and candle sticks pattern and than using this learning in market analysis than you can easily find best profitable strategy.
According to me I have a particular strategy in this post image you can see that first to first I mark support or resistance.
And than I am waiting for any chart pattern or candle sticks pattern and if any stock price have good volume and price cross the moving average.
Than I mark our upper resistance as shown in figure and than if our stop loss is less than 1 % and our target is more than 2% than,
I again one time see volume and candle size because the candle size is must important if candle size is not big than our stop loss is also not big.
This way our strategy work on the basis of support, resistance, candle sticks, volume, candle size and moving average 200.
This help to find our strategy and also this is our strategy. You can also use this strategy it is very profitable if you follow all above things.
If you not follow discipline or use emotion than may be you have to book losses so if trade is not available than also try to avoid unwanted trade.
How to trade using this strategy ?
It is very simple to use this strategy. The following steps is required :-
- Step 1:- Find those stock which cross today Moving Average
- Step 2:- See today change in price must be grater than 2 to 3 %
- Step 3:- See recent support or resistance must be near
- Step 4:- See Volume must be good
- Step 5:- See Candle size must be not big
- Step 6:- See Stop loss must be less than 1%
- Step 7:- See your upper resistance must me above 2 to 5 % near
- Step 8:- Now wait for day high breakout and than you can trade
Using these steps you can easily trade and also make profit if you follow whole rules with discipline and must be practice need so when you free than do back-testing.
📌 Conclusion of the Article:
This article provides a detailed and practical guide for beginners and experienced traders in the Indian stock market to develop and apply a profitable trading strategy.
It emphasizes the importance of discipline, risk management, technical analysis (like support/resistance, candlestick patterns, moving averages), and proper back-testing.
By following a rule-based approach—focusing on volume, price action, candle size, and tight stop-loss the suggested strategy aims to help traders consistently identify high-probability trade setups. Success, however, depends on consistent practice, emotional control, and avoiding impulsive trades.
📚 Frequently Asked Questions (FAQs) ?
1. 📌 What is a trading strategy in the stock market?
A trading strategy is a planned set of rules used to decide when to buy or sell stocks to make profits.
2. 📌 Why is using a trading strategy important?
It helps reduce emotional trading, manage risk, and maintain consistency in decision-making.
3. 📌 What tools are used in the strategy mentioned in the article?
The strategy uses support/resistance levels, candlestick patterns, volume analysis, and the 200-day moving average.
4. 📌 What is a good risk-to-reward ratio in trading?
A 1:2 ratio is considered ideal, where the potential reward is twice the risk taken.
5. 📌 How do I select stocks for this strategy?
Choose stocks that have crossed the moving average, show high volume, and have price movements of over 2–3%.
6. 📌 What is the ideal stop-loss in this strategy?
The stop-loss should be less than 1% of the stock price to limit potential losses.
7. 📌 Can beginners use this strategy?
Yes, but it’s recommended to start with paper trading or small amounts to gain experience.
8. 📌 How important is backtesting?
Very important. It helps you check how well the strategy works on past market data before risking real money.
9. 📌 Which stocks are best for beginners to start trading with?
Start with liquid stocks from NIFTY 50 or well-known names like Reliance, Infosys, or HDFC Bank.
10. 📌 What if no good trade is available on a day?
Avoid trading. Patience and discipline are key—trading unnecessarily may lead to losses.
