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Mastering the Box Theory

  From 6 Years of Losses to Six-Figure Profits: Mastering the Box Theory If you’ve been struggling with trading, you’re not alone. Many spent six or more consecutive years in a cycle of frustrating and humiliating losses. Me was grinding every day, studying endless charts, only to watch my hard-earned money vanish into the market. Everything changed when I discovered a simple strategy called the Box Theory . Over the last eight months, I’ve seen hundreds of traders use this exact method to turn their fortunes around. Here is how you can use it to find consistency in any market—whether it’s Bitcoin, Forex, or the NIFTY. Step 1: Set Up Your "Naked" Chart The pros always start with a Daily Chart . The reason is simple: the daily timeframe has the highest concentration of liquidity. This is where the most significant activity happens and where your chances of making a profit are highest. To start: Open a daily chart of your chosen asset. Ensure it is a "naked" chart —no...
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Budget Day Trading Strategy -Stocks List , Entry Timing, Exit, Stop loss

 

Budget Day Trading Strategy

Budget day in the stock market can be highly volatile, presenting traders with unique opportunities and challenges. This strategy outlines a two-phase trading plan focusing on key timings, specific stocks, and market psychology.

Phase One: Pre-Market Preparation and Initial Entries

Homework and Market Context: Before budget day, examine if the market has been moving sideways for five to eight days.

  • If the market has moved upward, prepare to take short positions.

  • If the market has moved downward, prepare to take long positions.

Rule #1: No Trades Before 10:00 AM

  • Avoid entering any trades before 10:00 AM to observe initial market reactions.

Key Stocks for Watchlist:

  • SBI

  • LIC

  • Tata Power

  • Nifty

  • Bank Nifty

  • UPL

  • Chambal Fertilizer

  • Exide

  • Amar Raja

Timing Strategy:

  • At 10:40 AM, make a short entry if Nifty shows significant bearish movement (200-350 points).

  • Prepare to act within two minutes of a 6% to 8% drop, as further declines are possible.

Stock-Specific Phase One Actions

ITC:

  • If ITC is at its day high or middle range:

    • Sell at 10:45 AM with a 2% stop loss.

    • Hold until a 6% to 8% drop, then prepare to buy.

    • Hold the buy position for up to 45 minutes or until it recovers from -6% to -1% and moves to +1%.

Page Industries:

  • Short at 12:45 PM near the day high.

  • Cover the position if there is a 2% to 4% drop.

Tata Power:

  • Short as soon as power-related announcements are made.

  • Target a 6% to 8% decline.

Exide:

  • Short at 12:45 PM and hold for a 3% to 5% move.

Chambal Fertilizer and UPL:

  • Short at 12:45 PM only if they are near the day low.

  • Avoid shorting if a significant fall has already occurred.

  • Optionally, short these stocks at 10:40 AM if they are consistent losers.

Phase Two: Post-Market Reaction and Closing Moves

SBI:

  • Monitor SBI closely between 9:00 AM and 12:00 PM.

  • If SBI drops 2% to 3% within 9 to 12 minutes, create a short position within the next 3 to 5 minutes.

  • If a 3% to 5% fall occurs, cover the short and take a long position.

  • SBI’s movement will significantly impact Bank Nifty, so a recovery in Bank Nifty may follow.

LIC Housing:

  • Short if it falls 2% within 9 to 12 minutes.

  • Wait for a 3% to 5% fall, then cover the short and take a long position in Nifty.

Game of the Index

  • If Nifty falls 100 to 150 points within 5 to 8 minutes, create a short position within 2 minutes.

  • Expect a further 200 to 350 point drop within the next 10 to 15 minutes.

  • Exit immediately after this second fall.

  • For upward moves of 100 to 150 points, avoid buying immediately. Wait for the second move before making a sell decision.

Timing Consideration for Phase Two:

  • Between 2:30 PM and 2:45 PM, monitor Nifty’s momentum:

    • If moving continuously up, prepare to take a reverse position.

Summary of Key Timings

TimeAction
10:40 AMShort Nifty on significant movement
10:45 AMShort ITC at day high or middle
12:45 PMShort Page Industries, Tata Power, Exide
12:45 PMShort Chambal Fertilizer and UPL if near low
2:30 PMMonitor Nifty for phase two reversal

Additional Considerations

  • Avoid impulsive trades based on breaking news.

  • Maintain strict stop losses and target levels.

  • Monitor minute-by-minute charts for better precision.

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