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Beginner Trading Toolkit

The document provides a beginner's toolkit for intraday trading focused on Nifty and options, including a watchlist of key instruments, rules for option strike selection, and a sample breakout pattern. It emphasizes the importance of a trade checklist and maintaining a trade log for tracking performance and learning from mistakes. Additionally, it advises on trading psychology, encouraging traders to focus on discipline and emotional awareness rather than immediate profits in the initial week.

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prashantkushwah0081
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53 views2 pages

Beginner Trading Toolkit

The document provides a beginner's toolkit for intraday trading focused on Nifty and options, including a watchlist of key instruments, rules for option strike selection, and a sample breakout pattern. It emphasizes the importance of a trade checklist and maintaining a trade log for tracking performance and learning from mistakes. Additionally, it advises on trading psychology, encouraging traders to focus on discipline and emotional awareness rather than immediate profits in the initial week.

Uploaded by

prashantkushwah0081
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Beginner Intraday Trading Toolkit (Nifty & Options Focused)

1. Basic Intraday Stock + Index Watchlist

Instrument: Why to Watch


Nifty 50 Index: Best for small capital, tight spreads
Bank Nifty: High volatility, better for experienced scalpers
Reliance Industries: High weightage stock, moves with Nifty
HDFC Bank: High liquidity, reacts well to breakouts
Infosys: IT sector leader, good for momentum
ICICI Bank: Follows Bank Nifty movement
TCS: Good trending stock for breakouts

2. Simple Option Strike Selection Rule

Before 12 PM: At-The-Money (ATM) Options (e.g., Nifty 25,500 CE/PE)


After 12 PM: 1 Strike In-The-Money (ITM) (e.g., 25,400 CE or 25,600 PE)
Expiry Day (Thursday): Only ATM or 1 ITM, close trades quickly (Theta decay is high)

3. Sample Breakout Pattern (Description)

For your 5-min chart:


- Wait for Nifty to stay in a small range (sideways between Support and Resistance).
- When a strong green candle closes above resistance with volume, it’s a breakout buy.
- When a strong red candle closes below support with volume, it’s a breakdown short.
Note: Candle Body Close is IMPORTANT – Don’t act on wicks or fake moves.

4. Basic Intraday Trade Checklist

✅ Did I wait for candle close above/below level?


✅ Is volume supporting the move?
✅ Is Risk:Reward at least 1:1?
✅ Is my Stop Loss in place?
✅ Am I trading small quantity?
✅ If 2nd trade: Is this setup really clean or am I overtrading?

5. Intraday Trade Log Template


Date | Trade Type | Instrument | Entry Price | Exit Price | Profit/Loss | Reason for Entry |
Mistakes/Learnings
Example:
1-Jul | Breakout Long | Nifty 25,500 CE | ₹120 | ₹140 | +₹400 | Breakout above 25,530 |
NA
2-Jul | Breakdown Short | Nifty Futures | 25,490 | 25,470 | +₹400 | Breakdown below
25,500 | Exited early

6. Trading Psychology Tip for Week 1

The goal for Week 1 is NOT big profit.


Focus on:
- Following rules
- Taking small, controlled trades
- Avoiding big mistakes
- Observing your emotions during trades

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