Simple strategy for working professionals to make millions from the stock market
- raytraceventures
- Mar 26
- 5 min read
A friend of mine invested in the stock market by seeing previous year's rally. He had a very simple logic, "Aadmi ho ya market jana toh upar hi hai". (Be it human or market both have the tendency to go up.) Based on this logic without any fundamental or technical analysis he invested money in the month of October and since then his stocks have gone down by 30%, 40% and some of them are 70% down. When the market kept falling I asked him, if he is adding more shares in his portfolio and he said he has no choice but to average because of the deeper correction in the stock prices. I suggested him to hold the extra cash and wait for the strength to come back in the market. But he hardly listened to my suggestion. I personally do not know how to hold the stocks when they are 60% down from my buy price. Hence, instead of buying in the bear market, I wait for the buying force to return which comes in the form of FIIs and DIIs.
NIFTY 500 got corrected by 20% as of 03 Mar 2025 and it took it 158 days to reach to this low from 27 Sep 2024. Hence, we have gone through time-wise and price-wise correction. We are still in major downtrend. Don't be deluded by the fact that, if NIFTY 500 is down by 20% then stocks will fall by the same percentage, many of the stocks have corrected by 60%-70% in this bear rally.
How can you make money even in the weak market?
Going forward, I am going to give you exact system- pattern to look for, screening, entry and exit tactics, stop loss level, position sizing, profit taking which you can execute again and again to make millions from the stock market. Make no mistake, your risk management skills and mindset are paramount. The same strategy helped me catch Amber Enterprises. On 6 Mar 2025, I posted about it in our Telegram community. Below is the screenshot. By 20 Mar 2025, it gave a nice up move of 17%-18%.
Price pattern to look for on the candlestick charts
On daily timeframe you will see price falling from its near-term high, this fall can be in the range of 12%-35%, mostly large cap stocks fall some where in the range of 10%-15%. Midcap and small cap stocks can fall till 35%, measuring from near term high to the first time it takes support on the 200-day moving average or shows strength near or above it. The second time it again takes support on or above 200-day moving average, this should be your trigger point to add the stock to your watchlist and see it in coming few days at the end of the day. The time between two touch points should be between 5 to 14 trading days (ref Fig-3). You might not see the picture perfect setup that's where your experience with execution will play its role. With experience, you will identify the variations.
Screening
1. Go to https://in.tradingview.com/
2. After the page is opened click on Products > Supercharts (refer Fig-4)
Go to Filters on the right hand side of the screen (refer Fig-5)
In the filtering criteria use the below settings for screening stocks (refer Fig-5) Symbol Type = Common Stock Price >= Simple Moving Average (200) Exchange = NSE Volume >= 100k Current trading day = <selected>
Go over the charts one-by-one identifying the above mentioned pattern. Don't worry, I have shared 13 charts in the upcoming section for your reference.
Entry and exit tactics
For precise entry day and time, and stop level go over the below charts one-by-one and spend at least 10 mins. on each chart if you are a beginner. Just to give you a reference after 2.5 years of seeing 300-400 charts daily, it takes me 3-5 secs to shortlist a stock for my watchlist. I am assuming you are smarter than me hence, it will take lesser time for you to come to this level with experience.
Below are the two cases where this strategy failed
In 11 out of above 13 cases, this strategy worked and failed in two cases. But you don't know which will be those two trades when your strategy will fail hence, your risk management plan should be strong in every single trade.
Position sizing
As per the situational awareness, we are still in major bearish trend hence, your risk per trade should be between 0.25-0.50% of your total capital. For example, your capital is ₹1Cr then you should risk ₹25,000 to ₹50,000 per trade, not more than that. Now you have decided the amount you are going to risk, the next step is to calculate number of shares you should be buying, probably the most important thing in your survival in the stock market. For example, your entry price for a particular stock is 738 and logical stop loss level is 710 and you are going to risk 0.25% of your entire capital (₹1 Cr) i.e. ₹25,000 The number of shares will be calculated as follows: Risk Amount = 25000 Entry Price = 738 Stop Loss Price = 710
Quantity per Trade = (Risk Amount)/(Entry Price - Stop Loss Price) In our case, Quantity = 25000/(738-710) = 893
Never ever take a trade without defining the risk, first of all and then calculating your position size as per the risk. If you are not sure about the risk and position size then don't pull the trigger.
Profit taking
If things workout well and the trade goes in your favor then sell 50%-60% of your shares once it gives 3x profit of your initial risk. In our case, If I am getting a profit of ₹75,000 which is 3x of my risk i.e. ₹25,000 then I will sell 50% of my shares and put the trailing stop loss to ride the trend further. I will discuss more on how to trail the stop loss in upcoming blogs.
This brings us to the closure of this blog. I hope you enjoyed reading it as much as I enjoyed writing it. If you liked what I wrote and are serious about creating wealth from the stock market you can become the part of Eight Figr League, a credible platform for market participants through which you can know the pulse of Indian, US, China and European stock markets, connect with other great traders or investors, get daily updates, learn fundamental and technical analysis, connect with me over video call. All this just for ₹22 a day.
You can also connect with me over LinkedIn and X(Twitter) or watch me speaking on YouTube about trading, investing and mindset. I'm a student for life, so don't hesitate to send over your views or sources to help me enlighten myself. If you are a beginner and want to learn how I do what I do. The below series of blogs will help, to be read in chronological order:
Thank you for your time. Have a great week ahead in creating sustainable wealth!
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