BasicsofDayTradingbyROEFINSERV India

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Dear Reader,

Welcome to Indian Stock Market

First of all, How this Book will help YOU.

If you would like to earn Rs 3000 5000/- Daily Income or Rs 1,00,000/- and above Monthly Income working from your home or from your office, even if you have Zero trading experience and knowledge about the financial markets, then this Book will show you all the secret techniques and strategies to succeed in Indian Stock Market.

If you hate working 10 12 hrs a day in your job only to earn a fixed salary, then this Book will definitely bring a new financial change in your life.

2

Preface

Stop Worrying !!! You have come to the Right Place SHARE MARKET

Share Market is a Place where Crores of rupees of transactions take place in a single day. Big Portfolio Management Companies, Hedge funds and Institutional investors earn

hundreds of Crores every day by selecting the right stocks in the share market. If you

simply learn their techniques and follow and do what the Big Investors does, then earning

Rs 1,00,000 P.M from share market is definitely an achievable financial goal.

So, dont blindly believe that everyone will lose money in the stock market. There will be

always a winner and a loser in every business or profession.

This Book is a product of 15 years of Stock Market experience. Make sure you read it

completely.

Read this book completely if you are really serious about making money.

Wishing you health, wealth and happiness ROE FINSERV WWW.Roefinserv.Com

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COPYRIGHT & DISCLAIMER

Copyright (C). All Rights Reserved. No part of this course may be reproduced or

distributed in any form or by any means, electronic or mechanical, or stored in database

or retrieval system, without the prior permission of ROE FINSERV.

The Publisher and Author of this document specifically disclaims any liability incurred as

a consequence of the use or misuse, either directly or indirectly, of any information or

advice presented in this course.

The purpose of this manual is to provide a balanced and informative view of trading in

stocks.

NON DISCLOSURE AGREEMENT

You should agree not to disclose any strategies, trading plans and other proprietary data

mentioned in this book without the permission of ROE FINSERV.

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Introduction to Intraday Trading

Intraday Trading

Intraday trading/ Day trading refers to the practice of Buying and Selling of Shares/Stocks

within the same trading day, thereby making a Profit/Loss all in a single day.

Traders who participate in day trading are known as Intraday traders.

Important Terminologies in Day trading

Buy/Long When you Buy a Stock with a view that the price will rise.

Sell/Short When you Sell a Stock with a view that price will fall.

Ask Price It is the Price at which the stock can be Bought/Long at a given Market price.

Bid Price It is the Price at which the stock can be Sold/Short at a given Market price.

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Example of Bid and Ask Price

Assume the Price of Idea share is 150 and you decide to take a position in Idea.

In the Live Market, you find BID at 150.10 and ASK at 150.30.

If you want to Buy/Long, you have to Buy at 150.30 and if you want to Sell, you

have to Sell at 150.10.

Spread The Difference between BID Price and ASK Price is known as SPREAD.

Stop Loss order An Order placed with a broker to close the position at a specified price

to limit the loss on a single position.

For Ex : Assume you have Bought/Long RELIANCE Shares at 700. You do not

want to risk more than 2% of your capital. So, you place an order

with your Broker to Sell RELIANCE Shares at 686. When the price of

RELIANCE falls below 686, your order will be executed and closed at

686 to limit the loss.

Stop loss order is a great tool to limit your losses during adverse and Volatile

Market Conditions.

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Leverage - Leverage can help the Intraday traders to earn higher profits from small

amount of capital.

Let us understand the basic concept of leverage with the help of an example

Mr.A was a whole-sale dealer in wheat. He used to sell wheat at 50 rupees per KG.

Mr.Z was a retailer who buys wheat from Mr.A.

Mr.Z had a Capital of 1000rs. He buys 20 KGS of wheat from Mr.A and sells it at

60 Rupees Per KG.

So, Mr.Z made a Profit of 20 * 10 = 200 rupees. i.e, 20% Return on Investment.

After few months, Mr.A decides to give 2 times leverage to Mr.Z.

So, Mr.A gives 40 KGS of wheat to Mr.Z for the same amount of 1000rs, with an

understanding that the balance amount will be paid after the sale of wheat.

Mr.Z sells 40 KGS of wheat at 60 Rupees Per KG and earns 40 * 60 = 2400rs.

He gives the remaining 1000rs [ 20KG * 50Rs ] back to Mr.A.

Now, Mr.Z has 1400rs left with him. So, he made 400rs Profit [ 10Rs Profit * 40KG ].

Leverage helped Mr.Z to double his profit with the same amount of capital.

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Similarly, Intraday traders get leverage from their Brokers to trade in the markets, which

means if they have 10,000rs Capital they can trade up to 70,000 1,00,000rs depending

upon the leverage their Brokers provide.

This nature of financial leverage provides an extremely profitable opportunity for Day

traders to turn small capital to large amounts.

Now before proceeding further,

Lets understand few important facts on Intraday trading

Does everyone make money in Intraday trading ?

Of course not, we would be in big trouble if everyone made money.

Your first lesson is that

Trading is a ZERO SUM GAME, someone has to lose for someone to profit.

If you decide to Buy 1000 shares of Infosys someone else will Sell those shares to you,

you always will have two parties. Fortunately in the trading world everyone does not have

the same opinion. I may think that Infosys prices is going to go Up and you may think

Infosys prices will go Down and that is what makes a market. Someone will gain from

someone elses losses.

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Participants in Intraday trading

Day trading once used to be the preserve of financial firms, Banks and High frequency

traders. However, today day trading has become increasingly popular among Retail/Small

Individual traders due to advances in technology and the popularity of the Internet.

Below are the major participants in Intraday trading.

Professional Traders

High Frequency Traders

Proprietary Trading desks

Brokerage Firms

Arbitrage Traders

Banks

Retail/Small Individual Traders

How to Compete with Big traders

Every Participant in Intraday trading wants to make money. Big financial firms, Banks,

Proprietary trading desks spend hundreds of Crores every year on latest technologies,

Skilled employees, Value information, Research and New Strategies. They always compete

with other participants to make their money in the Zero Sum game.

This is the main reason why 95% of small individual traders lose money in the share

market as they are competing against the Big traders.

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But, this also provides a great opportunity for intelligent retail/small individual traders to

compete with the Big traders by using their own strategies and information for free of

cost with the help of Price action in Technical analysis.

Technical analysis may sound a bit complicated for new investors and traders.

But in simple terms, Technical Analysis is the study of price movements to predict the

future price of a particular stock with the help of technical charts.

The advantage of Technical charts is that they tell you whats happening in the market.

In many cases the chart clearly shows the action of all the Big traders. All you have to do

is follow the Big traders to make money along with them.

Lets learn how to track and follow the actions of Big traders by using our Proven

Intraday strategies in the next section.

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Intraday Strategies

The simple rule in Intraday trading is Buy when the Big traders are Buying and Sell when

the Big traders are Selling.

Looking at the technical chart it is common to see some patterns appear over and over.

These patterns indicate the major actions of all the participants in the stock markets.

We have developed 2 different strategies that help you to make more money by

selecting the right stocks and even help you to save more money from staying away from

the wrong stocks.

This strategies has been tested for more than 8 years in live market hours and has made

consistent money both in Up/Rising markets and Down/Falling markets.

Strategies

Support and Resistance Breakout

Support and Resistance is one of the important tools to track the markets during

Intraday.

The share prices are a head to head battle between the Buyers and the Sellers. The Buyers

push the prices higher and the Sellers push the prices lower. The direction price of the

share reveals who is winning the battle.

Support level is the point at which buyers take control of prices to prevent from falling

lower & Resistance level is the point at which sellers take control of prices to prevent from

rising higher.

The shift in the demand and supply creates a Breakout in the support and resistance lines

which clearly indicates the action of the Big participants in the market.

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Strategy 1 [ For Bull/Up/Rising Markets ]

Intraday Resistance Breakout

Below is the example of TATAMOTORS shares.

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On 27th MAY, the Price of TATAMOTORS was trading in a range of 287.50 291 from

Morning 9.15A.M 2.30P.M.

But at 2.35P.M, there was a Breakout above Intraday Resistance along with a sudden

increase in trading volumes.

At 2.30P.M, the trading volumes was less than 20 lakhs. But in the next 5 minutes the

trading volumes was more than 70 lakhs. This clearly indicates that the Big participants

in the market are Buying TATAMOTORS Shares.

How to trade with this strategy

Buy at 292.50 293 [ Price level close to the Breakout ]

Stop Loss at 291 [ Breakout line ]

How to calculate the Target

Assume that you Buy at 292.50 with a Stop loss at 291.

Risk on Trade = 1.50

Now Target should be at 295.50 296.

Reward = 3

Risk Reward ratio = 1 : 2

The Target was achieved in less than 20 minutes.

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Strategy 2 [ For Bear/ Down/ Falling Markets ]

You can also make money when the Stock prices go down.

Intraday Support Breakout

Below is the example of RELIANCE INFRA Shares

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On 20th MAY, the Price of RELIANCE INFRA was trading in a range of 431.50 438.50

from morning 10.00A.M 2.00P.M.

But at 2.05P.M, there was a Breakout below Intraday Support at 431.50.

At 2.00 P.M, the trading volumes was 4,50,000, but at 2.05 P.M, the trading volumes was

32,17,500. This indicates that the Big participants are selling Reliance Infra shares.

How to trade with this strategy

Sell at 431 430 [ Price level close to the Breakout ]

Stop loss at 431.50 [ Breakout line ]

Target calculation

Sell at 430 with a Stop loss at 431.50

Risk of 1.50

Target should be at 427 - 426.

Reward = 3

Risk Reward Ratio = 1 : 2

The target was achieved in less than 30 minutes.

We dont have to spend Crores of rupees like Big Participants to get all the information.

The price action in Technical chart tells us what the big traders are doing in the markets.

All we have to do is follow them and trade along with them by using their Information for

free of cost.

This Breakout strategy has a very high percentage of success and accuracy in

Intraday trading.

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Below are few of the examples on how these strategies have performed in the markets.

1. Intraday Resistance Breakout

IDFC

Buy at 152.50 with a Stop loss at 152.30 and Target at 154.


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JSW STEEL

Buy at 692 with a Stop loss at 687.50 and Target at 705


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MCDOWELL

Buy at 2550 with a Stop loss at 2542 and Target at 2566.


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2. Intraday Support Breakout

TITAN

Sell at 259 with a Stop loss at 259.60 and Target at 257.50


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MARUTI

Sell at 1458 with a Stop loss at 1460 and Target at 1445


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ONGC

Sell at 329 with a Stop loss at 330.20 and Target at 324


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Trading Plan to Earn 1,00,000 P.M in Intraday

As an Intraday trader, your only objective is to make profits as much as possible.

Whether the Market is going Up or Down, you want to earn your daily profits.

So, We have prepared a detailed trading plan for you to earn more than 1,00,000 /- every

month with a very small start up capital.

Rules to Follow

Start with a Small capital of 20,000Rs.

Take a leverage of 5 times on your capital.

Achieve 15 - 20% Return on Investment [ ROI ] every month.

Compound your money for first 4 months.

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1st Month

Capital = 20,000

Take a Leverage of 5 times from your Broker = 20,000 * 5 = 1,00,000

Total Capital available for Intraday trading = 1,00,000

ROI = 15%

1,00,000 * 15% = 15,000

Total Capital after 1st Month = 20,000 + 15,000 = 35,000

2nd Month

Capital = 35,000

Take a Leverage of 5 times = 35,000 * 5 = 1,75,000


ROI = 15%

1,75,000 * 15% = 26,250

Total Capital after 2nd Month = 35,000 + 26,250 = 61,250

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3rd Month

Capital = 61,250

Leverage of 5 times = 61,250 * 5 = 3,06,250


ROI = 15%

3,06,250 * 15% = 45,930

Total Capital after 3th Month = 61,250 + 45,930 = 1,07,180

4th Month

Capital = 1,07,180

Leverage of 5 times = 1,07,180 * 5 = 5,35,900


ROI = 15%

5,35,900 * 15% = 80,300

Total Capital after 4th Month = 1,07,180 + 80,300 = 1,87,480

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From 5th Month onwards, you will be earning more than 1,00,000 P.M with this trading

plan.

5th Month

Capital = 1,87,480

Leverage of 5 times = 1,87,480 * 5 = 9,37,400

Total Capital for Intraday trading = 9,37,400

ROI = 15%

9,37,400 * 15% = 1,40,600

Monthly Income of more than Rs 1,00,000 for the rest of your life. Moreover your

monthly income keeps on increasing every month.

Now the important aspect of this trading plan is......

How to Earn 15 20% per month

If you follow our Intraday strategies, you must select on an average of 3 4 stocks per

day.

There are 22 trading days in a month, as there will be holidays on Saturday and Sunday.

22 days * 3 trades per day = 66 trades per month

Target per month = 15% [ Minimum ]

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Trading plan to earn 15 20% per month

Our strategies always have a minimum Risk Reward ratio of 1 : 2, which means if you

risk 1 rupee on a trade, you earn 2rs from it.

Lets look into different possibilities

Accuracy of 80%

Means 80% of your trades are Profitable.

66 trades per month* 80% accuracy = 52 winning trades and 14 losing trades


Profits from winning trades = 52 * 2 = 104%

Losses from losing trades = 14 * 1 = 14%

ROI per month = 104 14 = 90% Return on Investment

Accuracy of 60%

Means 60% of your trades are Profitable.

66 * 60% = 39 winning trades and 27 losing trades


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Accuracy of 50%

Means half of your trades are profitable and the other half are losing ones.

66 * 50% = 33 winning trades and 33 losing trades





Brokerage charges and all other expenses = 10%

So, even in the worst scenario with an accuracy of just 50%, you can still achieve the

monthly target of 15 20% very easily by following our Intraday strategies.

This is how you should plan for your Intraday trading to meet your financial goals.

Our Intraday Strategy has an accuracy of more than 80%.

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Now,

Are you ready to start your Day trading.

Are you ready to earn Rs 1,00,000/- Monthly Income

Wait !!!!!

Still you are not completely prepared to make money in Day trading.

Why ??

You have learned the secret strategies and techniques used by Big participants.

You have a detail trading plan to earn Rs 1,00,000P.M in all market conditions.

But the most important aspect to make money in Day trading is by selecting the

Right 3 4 Stocks.

How do you select the Right 3 4 Stocks daily ??

Only after you select the right stocks, you can apply the strategies and techniques learnt

in this book to make money in day trading.

Selecting the Right 3 -4 stocks to track and trade in Intraday from 1000+ Stocks at NSE

[ National Stock Exchange ] is a very difficult task for a small individual trader.

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But it is not difficult for you.......

As, we are going to teach you all the techniques on how to select the right 3-4 stocks for

day trading. Once you learn the techniques, you can simply apply our Intraday strategies

on the selected stocks and make money every day for the rest of your life.

Give a man a fish and he eats for a day, teach a man to fish and he can feed

himself for life

This is what we believe in,

We are always happy to share our experience and knowledge with you so that you do not

trade blindly in the markets and lose your hard earned money against the Big traders.

Before proceeding further, answer to this simple question

What is the main reason for you to trade ??

The answer is definitely for Money. But if money is the only reason, then you are missing

the other equally important reasons for you to trade.

1. No Office or staff You can work from anywhere in the world. There is no need

for you to go to office daily. All you require is a PC/Laptop with internet

connection and you are ready for the work.

2. No Boss There will be no one instructing you on how to work. You can decide

on how you work and when you work.

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3. No Marketing or MLM This is not a marketing business. So, there will be no

targets for you to achieve to earn money. All you have to do is buy and sell 3-4

right stocks daily and earn your profits.

4. No Fixed Salary There is no need for you to work 12 14hrs a day to earn only a

fixed salary. Work only during stock market hours and earn sufficient income

daily.

5. Financial freedom This is the main reason why you should choose to trade.

Why work all your life in a job you dont even like, when life could be much more

balancing for you?

Imagine the kind of incredible lifestyle, where you no longer have to work under

someone, but still can earn more income than your day job from the comfort of

your home.

You can travel, relax, read, shop, go to gym or do anything you like from the extra

time that you get from trading.

We know it may seem amazing, but this is what a financial freedom can provide to

you and your family.

Never depend on single income, make investments to create a second source

- Warren Buffet

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So, whether you go for a day job or work under someone or not, it is equally important

for you to trade to bring a new financial change in your life, as trading is the only way

where you can start with small capital and turn into big amounts with proper market

knowledge.

Now, how to select the right 3-4 stocks for day trading ?

As told earlier, we would teach you all the techniques on how to pick the right stocks.

We have developed an unique online home study course that will teach you the

practical learning of the Stock markets from the Basics with our lifetime personal

support and guidance.

We can teach it to you from the comfort of your home, office or any location across the

world, thanks to the power of internet, so you dont need to travel and attend any

seminar.

What will you learn in our Home study Stock Market Course

Course Content :

Basics of Share Markets

What is a Share

Why do companies issue Shares

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How do companies issue shares to the public

What are Securities

What is Secondary Market

What causes share prices to rise and fall

What causes the variations in demand & supply of a share

What is the Face value of a share

What is Market Capitalization of a company

How to Buy and Sell Shares

Important terminologies

How to open a Demat account

Depository and Depository Participants

Stock Exchange

Securities Exchange Board of India [ SEBI ]

Stock Brokers and Sub Brokers

Trading Account

Best Stock Brokers in India

Fundamental Analysis

What is Fundamental Analysis

What is P/E Ratio

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How to select companies with good fundamentals

How to do Fundamental Analysis of a company in just 2 minutes

How to get inside information of a company

Technical Analysis

Important indicators in Technical Analysis

Types of Technical Charts

History of Technical Analysis

Dow Theory

3 Proven Technical Analysis Trading strategies for long term Investments

Strategy 1

Strategy 2

Strategy 3

Indicators and Oscillators

Secret Techniques to select Right 3-4 stocks for Day trading

Pre-open market

Best time to trade in intraday

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Important news tracker RBI Monetary policy, IIP data, WPI data etc...

Stock Selection

Trading Plan to Earn 1 Crore with just Rs 10,000/-

Rules to follow

Investment process

Portfolio Calculations

7 Secrets of Stock Investing used by top hedge funds and portfolio management

companies

Practical trading guide for New traders

Lifetime personal Support and guidance

Even with Zero trading knowledge and experience, you can become a stock market expert

with our complete trading course.

Our course has helped more than 5,000 people in the last 15 years all over the world

and is highly recommended by the top investment experts in the country.

Whats the Cost of the Course ?

Assume that you start with a very small capital of just Rs 10,000/-

You take 5 times leverage for trading = 10,000 * 5 = 50,000/-

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Total capital for trading = 50,000/-

ROI = 15%

50,000 * 15% = Rs 7500/-

Even with a small capital of just Rs 10,000, you can earn Rs 7500 P.M.

You will be earning more than 1,00,000/- P.M after 4-6 months for the rest of your life.

Now,

What is the price are you ready to Pay for our course

Rs 15,000/- , 25,000/- , 50,000/- ................

Price is what you pay and Value is what you get

You may have some doubts and queries before purchasing our Complete trading

course.

Below are the list of frequently asked questions [ faqs]

1. If you trading strategy is so good then Why do you share it with others, Why

dont you keep it as a secret ?

There are 3 reasons why we are happy to share our trading secrets and strategies

with others.

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The first reason is that the trading strategies and techniques will work

irrespective of number of people who follow it. Whether 100 people use our

trading strategy or 100 Crore people use our trading strategy, it will still work for

everyone. So by teaching to others, it will not affect our trading income.

Lets come to the second reason. To grow rich one should always follow this

principle. Create multiple source of income. We look to create another source of

income with our stock market training. After you learn our trading strategies and

techniques, you will be able to make money in the stock market. You may then tell

your friends and colleagues about our services or may become our Business

Partner** which helps us to expand our business and also to maintain a good and

long term profitable relationship with you.

And the last reason is to excel. Warren Buffet, Bill Gates, Anil Ambani are among

the top 10 richest men in the world. Does that mean they have stopped trying to

earn more. Every day we hear about the new investments, projects, businesses they

are starting to further increase their wealth. Its human nature to want to grow and

excel. So we are looking to grow and excel by sharing our Stock market knowledge

and experience.

2. I am New to Stock Market, can I purchase your home study course ?

Definitely Yes, the Course has been developed with a view that even common

people with zero trading knowledge can master the skills of stock markets.

Irrespective of your background, i.e. whether you are a salaried person, or a

businessman, housewife, retired person, or a student you will learn on how to

trade in stock market with our Complete trading course.

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3. At last, Why should I purchase your trading Course ?

Take the example of a Television. To invent a TV was a complex task. A lot of

research, analysis and experiments were done by many experts before the first TV

was manufactured.

But today, even a small child can easily use the remote to turn on the TV and

select his/her favourite program.

Similarly if you want to select the right 3-4 stocks for day trading on your own to

earn 1,00,000P.M, our complete trading course is a must for you.

You cannot learn our strategies, techniques and trading plans anywhere

else.

The Cost of our Complete trading course is Rs 7000/-** [ With 100% Money Back Guarantee ].

**The above Price is valid only for short period.

Why 100% Money Back Guarantee

We always want to maintain a good and long term relationship with our clients.

Money once lost can be gained again, but trust once lost cannot be gained again

So, our clients trust and satisfaction is more important to us.

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You can Purchase our trading course and learn all the strategies, techniques and trading

plans to make money in the stock market.

If you make money, you can keep all our trading courses, guides and books and use them

to make money for the rest of your life. If you dont make money, simply inform us we

would refund your entire Rs 7,000/- without any questions.

Thats how confident we are about our complete trading course.

To Purchase our Complete Trading Course

Call : 098-8673-1905

Mail : [email protected]

Take Action today by purchasing our Complete trading course to fulfil your financial

dreams.

You have nothing to lose with our 100% Money Back guarantee.

38

Free Investment Services

We at ROE FINSERV always believe in spreading the Right Stock Market knowledge to

the common people.

So, if you require any Long term Investment advice on any Particular Stock/Share or want

to get all the inside news of the Top 20 Best companies of Indian Stock Markets, then talk

with our Investment experts and get all the services for Free of Cost.

Call Us at 098-8673-1905 and our executive will transfer your call to our Investment experts.

If you are born Poor, its not your mistake, but if you die Poor, then

definitely its your mistake

Thank you for reading

ROE FINSERV WWW.Roefinserv.Com

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