Secret Hack of Millionaire Traders

Hello viewers. This is Vijay Bhambwani here and I'm back with you again. In this video, I'm addressing a topic which is very close to my heart and maybe many of you will find it extremely interesting and value added.

You see, this video has come from an idea which germinated on Saturday. I believe it was the seventh of August, wherein every Saturday I am going to be doing a Q&A session live on YouTube with Equitymaster and I am answering questions of my viewers about trading systems, how to trade better, how to make more money, and the one thing that came to my attention, it was in immediately apparent, there were a lot of questions from viewers who were asking along the broader a kind of game plan of how can I depend on trading for a living? Is trading for a living even possible, whether it is possible to run your home and hearth expenses with trading?

The answer is yes, and in the past also I have made many videos about trading for a living but this trading hack I am going to share with you is going to make your life as an intraday trader, I am talking purely intraday, is going to make your life as an intraday trader infinitely easier and which means your profitability will skyrocket once you do this.

You have my contact coordinates. If this hack fails, give me a shout. I stand by what I am saying. I am responsible for what I'm advocating in this video.

So the idea behind this video is that many a times, many a times, and especially in the commodity markets, which, by the way, open at 9 am and stop trading at either 11:30 in summer time or 12 midnight at winter time, it becomes near impossible for a trader to remain alert, constantly alert that too, for 15 hours nonstop.

And guess what? The minute you excuse yourself from your trading terminal or the trading computer, you know, there are some times you need to go. So you realise that the price that you were waiting for, for many, many hours, actually came and went by and your trade got missed or you were not too alert and you kind of your eyes dropped a little and trade left you.

Do remember, it's not just 15 hours of trading. About an hour or two, either partly or fully before and after the trading session is done, you will want to read what happened to the overnight US market would happen to commodities, currencies, bond markets, you will read your emails. So you're actually working 16, 17, 18 hours a day as a commodity trader.

Life for equity traders need not be a too far simple because you are going to be doing your post market preparation work as well. So the more you automate you're trading system, the more you automate your trading process, the more mentally relaxed and focused you will be on the prima donna or the most important aspect of trading, the actual execution.

Mercifully, electronic markets, digital markets, provide you far more tools as a trader than they did provide me in 1986 in a manual public outcry system where people went to the ring and gesticulated with each other. This is to sell. This is to buy. You could only observe as a bystander from outside.

Now the trading hack that I'm talking about is called trade alerts. You see back in the good old days or bad old days, depending on how you want to talk about it, you had to wait for somebody manually announcing the rates on the public outcry system and those rates could have been 10, 12, 15 minutes old, which means it was a post mortem.

Then came the BSE online trading system on the BOTL and we could see the rates in real time in front of our screen. But how do you set an alert that your price has come? So what we used to do was put in 100 shares to buy or sell at a price which we wanted to be alerted about. As soon as the price came, if you just wanted to know the price, you would sell the share immediately, at maybe 5-10 paise here or there. The idea was to be told that this price has come.

Buy it costed money, a lot of accounting trouble because you are now a reporting and lodging in your books each and every transaction, many of such, we're barely alert trades, where to put your stop loss, etc.

So now the simple thing on your trading terminal is called Trade Alerts. Now I'll guide, you step by step.

Step number one. What you see on your screen right now is your broker's trading terminal of a computer app. This is not a mobile app although this feature is available on almost all brokerage firms' mobile trading apps.

 

Now, this is your computer trading terminal. The system that I am trading on is called Odin. Two thirds of all brokers in India use Odin and if they are not, many of the commands that you need to execute this system will remain uniform. So you're not really very far from what you're seeing on your screen in this video.

Now this market watch can be brought up by clicking on F4 for as soon as your terminal powers on but different brokers, maybe a different command. So you bring this market watch on. What you can see on this market watch is that a company called Coal India is basically in highlights. You can see a blue background to that coal India row on that screen. Now this is possible by simply putting your mouse and clicking on that company and you will see it's highlighted.

Now step number two. Right click. Different brokers, different commands but right click should be the one to do the trick. When you right click, these boxes should open up that you're seen on your screen.

 

Now this message box, says click on alerts. You click on alert and then it says, set script alert. You click on set script alert and now what you see is step number three on your screen. You will manually enter the script alert.

Now what you want to do is in a rising market, if it all your following some kind of technical analysis and you want to be told that the price is overcoming a previous resistance level, which means it is breaking out, you want to set an alert saying, say Nifty, is rising above 16,500. Then you will see on the box there are signs which would have read in class six mathematics, greater to or lesser than or equal to, or simply greater than or less than.

So, if you want an alert which says a break out above this price, you will use the command greater than. So you want 16,500 say. If the Nifty rises above 16,500.5 just to be sure, alert me on so and so method.

Now you have alert types like message box, balloon, beep or any other method. I click all of them. Now the other thing is message duration. GTC stands for good till cancelled. Don't bother about it. In the heat of battle don't waste your time on innuendos. Just like on GTC. Good till cancelled. If you want, you can always delete all or some alerts once the trading session is over.

The beauty about digital markets is you are in complete command of what you're doing in the markets. So use this, exercise this right and click on GTC and then wait for the price alert before taking a trade. Now it might look too simple to a lot of people. See the screen now.

You're seeing a lot of alerts on my screen which I've put about here. Some of them or maybe many of them need not even initiate, need not even get fired but what is the psychological impact of a day? I put alerts of buy and sell both. Let's assume that you have five buys and five sells.

On any particular day when you're sitting with a neutral mind, you'll follow the money, you'll go where the money is going, on any single day when you're sitting in front of a computer trading screen like this and suddenly one after the other 1, 2, 3, 4, and 5 buy alerts are getting triggered, what does common sense tell you?

Today is a day when you should be going long. The reverse is also true. If on any single day, you're getting more and more alerts about stocks breaching support levels, it tells you that the market is going to seek lower levels.

As I record this video on Tuesday, which is the 10th of August, suddenly, suddenly after noon, I am seeing a lot of sell side alerts, which means breach of previous support levels alerts popping up on my screen all the time.

This tells me that my short positions are something I should not square up easily, which means that the market is likely to go around. It's like this. You're watching all the dominoes around you fall, collapse like nine pins as the proverbial saying goes. What is the mathematical probability of the guy hitting the last remaining, the last standing domino? Fairly high. So you will bet on that event happening.

Now, this plays on our mind. Every time a beep, if you if you're wearing a headphone, the beep comes up. Then you see a balloon popping up on your screen and a message box popping up on your screen saying okay, saying SBI got triggered. Nifty got triggered. Bank of Baroda got triggered. Coal India got triggered. You suddenly know that the next trade that you have on the short side need not be squared up in a hurry.

This will enhance your profits. I stand by the system. I've used the system for many, many years, and I will continue to use it. Best of all, it's free. So let's make more money out there, and I do hope you're going to join me on the coming Saturday also. I'll have all your queries answered on the fly.

On this promising note, this is Vijay Bhambwani signing off for now from this video till we meet again in my next, not before reminding you to click like on this video if you liked what you saw. Subscribe to my YouTube channel if you haven't already done so and click on the bell icon to receive instant alerts about fresh videos being put up out here.

Good, bad or ugly. Keep your comments coming. I welcome all of them. Help me reach out to fellow like-minded investors and traders by referring my video to family and friends.

I wish you have a very profitable day. Till we meet again in my next, this is Vijay Bhambwani signing off for now. Take care. Bye.