Ghanshyam sir shares his favorite option buying strategy for Bank Nifty, focusing on candlestick patterns, specifically the hammer and shooting star. He emphasizes the importance of discipline, risk management, and money management in trading. Key points include:
1. Looking for a hammer candle after a downfall of 100-150 points.
2. Trading above the high of the hammer candle and setting a stop-loss at the low of the hammer.
3. Booking profit when the market starts trading below the low of one or two candles.
4. Not taking out the full quantity, but rather taking some profit and leaving some to ride the momentum.
5. Focusing on price action and not getting distracted by too much information.
6. Mastering a few setups rather than trying to learn too many.
7. Practicing discipline and not getting emotional about trades.
8. Building capital by adding profit little by little.
Ghanshyam sir stresses the importance of experience, discipline, and a clear understanding of the market. He encourages viewers to focus on a few key strategies and to practice consistently to achieve success in trading.
Here are the key facts extracted from the text:
1. The speaker, Ghanshyam sir, is an option buyer who trades on Bank Nifty.
2. He uses a simple chart without any indicators and follows basic price calculations, candlesticks, support, resistance, and trend lines.
3. He has been trading using these methods for the past 8 years.
4. He believes that momentum is key to making money in option buying.
5. He trades on the hammer candle and shooting star candle.
6. He only trades when the hammer candle is made on his specific conditions.
7. He takes entry above the hammer candle and uses the low of the hammer as his stop-loss.
8. He does not decide on a target and instead plays on momentum.
9. He follows two things for profit booking: the market starts trading below the low of one or two candles, and the price breaks the low of the last green candle.
10. He never takes out the full quantity of a trade and instead books profit in parts.
11. He believes in maintaining discipline and following rules in trading.
12. He does not care about volume in his trading decisions.
13. He believes that experience and a different view of the chart can make a trader successful.
14. He promotes learning 2-3 setups or strategies and following them consistently.
15. He believes that knowing too many things can lead to over-trading and confusion.
16. He does not use option chains in his trading decisions.
17. He believes that mastering one setup can lead to success in trading.
18. He trades on the same setup for 200 days to understand its details and make money.
19. He does not follow anyone and instead focuses on his own knowledge and experience.
20. He believes that following one thing consistently can lead to success in trading.