1. About Us and Trading Rules -1
Welcome to 9amtrades!
At 9amtrades, we share our chart setups which are based on technical studies. These chart setups are for demonstration and educational purpose only. These are not buying or selling recommendations. We are not SEBI registered.
Most of these charts are based on weekly or daily timeframe. Whenever we find a strong setup, we add a chart with defined levels. Most weekly charts are based on Friday closing price and are added on Friday to Sunday. However, if we find some exceptional setup, we do add it during weekdays.
Please also note that weekly chart setups may last for a few weeks to several months. There are instances where we have seen movement of 10-25% or even more in a single week, however, there are also instances where we have to wait for several weeks for any sizable movement . The whole idea is to learn how charting works and how to trade patiently, the way most successful traders do.
2. About Us and Trading Rules - 2
We suggest you spend time understanding the charts and emphasize on learning. 15-20 minutes a week are enough to start this learning process. This will be helpful for you in the remainder of your trading career and you will be able to spot such setups yourself.
We have added content on Position Sizing and Risk Management which are integral parts of trading. So kindly go through that also.
Trading Rules most traders follow: (Once you are through your learning process, you can follow these)
Only discipline, nothing else
Always protect your capital. (One may avoid entering in second trade unless first trade is risk-free. Once your trailing stop loss is above your buy price, enter in next trade.)
Can move your trailing stop loss to your cost once the trade is in your direction (say 8-10%)
Follow Risk Management and Position Sizing Rules
Let stop loss, trailing stop loss or target hit
3. Risk Management and Position Sizing - Strategy 1
Risk Management and Position Sizing
Before traders can use appropriate position sizing for a specific trade, they must determine their account risk. This typically gets expressed as a percentage of the trader’s capital. As a rule of thumb, most retail traders risk no more than 1% of their trading capital on any one trade.
For example, if an investor has a Rs 200000/- account and decides to set their maximum account risk at 1%, they cannot risk more than Rs 2000/- per trade (1% x 200000). The trader must then determine where to place their stop-loss order for the specific trade.
For example, if you intend to purchase a stock at Rs. 500 and place a stop-loss order at 480, the trade risk is Rs.20 per share. The trader now knows that they can risk Rs 2000/- per trade and is risking Rs. 20 per share. To work out the correct position size from this information, the trader simply needs to divide the account risk, which is Rs 2000/-, by the trade risk, which is Rs. 20/. This means 100 shares can be bought (2000 / 20).
Trading Capital: Rs 200000/-
Risk @1%=Rs 2000/- per trade
Stock price we want to enter: Rs 500/-
Risk per share: Rs 20/-
Position Size (No of shares we can buy: 2000/20=100 shares)
4. Risk Management and Position Sizing - Strategy 2
Risk Management and Position Sizing
Suppose you trading capital is Rs 500000/-. Divide your trading capital in 5-10 trades. Let us we divide our trading capital in 5 parts. So each trade will amount to Rs 100000/-
Now. take your first trade of 100000/-. Keep your stop loss in mind. Suppose you entered in the trade at 500 and your stop loss is 480 and targets are 530, 560, 600. If SL is hit, simply exit. However, if stock moves to your first target (here 530), move your SL to your entry point which is 500. Now this is a no loss trade. As this trade is risk free, let this trade run. And you can enter in your next trade with similar approach.
One can book partial profits at each target. You can book 25% profit at first target, next 25% profit on second target and so on. Or you can simply trail your stop loss. It means if stock moves to 530, move your SL to 500, stock moves to 560, move your SL to 530 and when stock moves to 600, move your SL to 560 and so on.
This is just an example. You can customize your strategy according to your risk level and trading style.
Hope it will help you in trading and keeping your account in green.
5. What is the difference in charts posted by us in Frontpage and Tradingview/Telegram?
Suppose in a week, there are 10 stocks on breakout setup. First, we filter out the stocks which are very week fundamentally (e.g. high debt companies, penny stocks, high promoter pledging etc.). Suppose 2 stocks are filtered out this way. Now, we have a list of 8 stocks. These are the stocks that can be traded. Some of these are having very strong fundamentals and some are just normal.
Now, we study all these 8 stocks. We define stop loss and target levels on these stocks and prepare charts for them. Now, we pick 2-3 charts out of these which are best in fundamentals as well. We share these selected charts with our paid subscribers.
So, charts posted in paid group are strong in fundamentals and on technical setup.
6. How many charts are added in a week?
Every week, we pick 2-3 best charts based on our fundamental and technical studies and share these selected charts with our paid subscribers.
However, there will be weeks when not even a single stock will fulfill our criteria of breakouts. We will not add any chart in those weeks. It will frequently happen when market is in correction phase or is in downtrend.
7. How many stocks should I have at any given time?
Different traders follow different strategies. Based on our studies, we find following information helpful:
For a trading capital of Rs. 10-11 Lac, one can have 6-7 stocks at a given time. For smaller trading accounts, no of stocks can be around 3-4.
If you find a better opportunity and do not want to miss a new trading idea, you can sell the least attractive one from your portfolio and can enter that new idea.
The more stocks traders have in our portfolio, the harder it becomes to keep a track of all those. However one can find his/her own comfort level in no of scrips he/she can own.
8. What should I do when market is in correction phase?
In correction phases or in downtrend, traders change their view from entering a new trade to booking profits from the stocks which start showing weakness.
There are few ways most trades exit their positions during correction phase:
1. Simply follow the stop loss (SL) on the charts. If SL hits, exit. No brainer.
2. or If a stock ((profitable position) starts trading below 21 days moving average, put it in your watchlist. If it shows further weakness and breaks its 50 days moving average, book your profit and wait for the next opportunity.
9. Here is the Disclaimer:
These chart setups are for demonstration & educational purpose only. These are not buy or sell recommendations. We are not SEBI registered.
We are adding these charts as per our breakout/swing setup. Most of our trades/positions are based on these setups. Also, we may or may not enter in a trade as it is entirely based on the availability of capital at the time that trade is generated.
Further, technical studies are just one part of a trade. Risk management and psychology are other important parts of it. Traders consider all these aspects before entering a trade.
10. Contact us if any query..
If you have any query related to charts posted by us, you can send us an email at:
We will try our best to assist you in the best possible manner.