Techniques followed by Ashish Kyal during the week for stock selection and trading strategy adopted that helped to win the stock trading show Bull’s Eye on CNBC TV18
It is exciting to participate in the stock trading game show but at the same time it is important to live upto the expectations of millions by not betting on lower probable trades. It is important to follow prudent risk and money management strategies. Market dynamics this time were different than that before in May 2016 when I won ET Now show with substantial margin.
For reference anyone wants to read about strategies followed then in May 2016 can refer the following link: Rules followed during ET Now game show where I won with substantial margin can be found in this link – Rules followed to win ET Now show by Huge margin
Following are a few strategies I followed for Bull’s Eye show on CNBC TV18. Notional amount of 400,000 was given that has to be spread across 4 different stocks on daily basis.
-Identifying overall market direction is most important as majority of stocks behave in close correlation to index even though magnitude of rise or fall might be different
-It was challenging to catch hold of momentum stocks during the week of 12th September 2016 to 16thSeptember 2016 as the main index Nifty was in absolute sideways direction after a sharp decline on 12thSeptember.
-During such scenarios it is better to bet on the outperforming stocks for going long and shorting the ones that hardly showed any pullback
-Key differentiator was managing to consistently perform rather than betting everything in one direction when the trend was not clear
-Techniques like Neo wave, Time Cycle analysis on very smaller degree helped me to gauge the market direction on last day of the week i.e. 16th September when I was expecting a correction after a brief run up whereas other participants maintained all buy calls, I was short on 3 stocks and long on only 1 stock – Cox & Kings that has tendency to move independent to the main index
-During final hour of the trade there was sharp selloff on majority of stocks and at the same time Cox & Kings recovered sharply into positive.
Definitely there is element of lady luck that also worked in favor and after the tough competition, I managed to outperform and was declared as a winner.
You might not find specific techniques which I followed during the day but various tools that I believe and practice rigorously is Elliott wave, Neo wave, Time cycles, Channels and identifying the direction of main index for the day is crucial to understand if it is better to be tilted more towards long side or shorts.
Techniques were more or less similar to that followed during May 2016 – ET Now game show. Please refer this link – Trading Rules to follow
In a nutshell, it feels good to win another stock trading game show when millions are watching but trust me the pressure is equally high…Actual trading is no different and a clearly defined strategy should be in place before you place your bets! Happy Trading… 🙂