7 Steps to Your First Profitable Trade

Step 1: Define Your Battlefield (Market & Timeframe)

Before you pick a stock, you must define where and when you will trade. This reduces overwhelm and market noise.

• Market: Focus on highly liquid large-cap stocks (e.g., Nifty 50 stocks). Avoid small-caps initially.
• Timeframe: Start with the 15-minute or 30-minute chart for intraday (or Daily chart for swing trading). Avoid 1-minute charts.

Action: Open your charting platform. Select 2-3 Nifty 50 stocks. Set your chart to a 15-minute timeframe.

Step 2: Spot the Landscape (Identify Support & Resistance)

Every good strategist understands the terrain. Identify Support and Resistance (S&R) levels—where prices have previously turned.

• Support: Draw horizontal lines at 'floors' where price bounces up.
• Resistance: Draw horizontal lines at 'ceilings' where price bounces down.

Action: Practice drawing at least 3-4 clear S&R levels on one of your chosen stocks.

Step 3: Find Your Entry Point (The Mission Trigger)

Your entry must be based on a clear signal, not a guess. We enter on confirmation.

• For a Long Trade: Wait for the price to break decisively above a Resistance level (a strong candle close above it).
• For a Short Trade: Wait for the price to break decisively below a Support level (a strong candle close below it).

Key Insight: A decisive break means a strong, full-bodied candle, confirming conviction and reducing false signals.

Action: Mark a recent decisive breakout/breakdown on your chart. This is your potential entry point.

Step 4: Plant Your Stop-Loss (Capital Protection Mission)

This is Rule #1 of the Mission Mindset. You must define your maximum loss before you enter the trade. Your stop-loss must be logical.

• For a Long Trade: Place your stop-loss just below the Resistance level that just broke, or below the low of the breakout candle.
• No Moving It: Once placed, do not move the stop-loss further away from your entry.

Action: Draw your logical stop-loss level for the trade you identified in Step 3.

Step 5: Set Your Target (The Profit Objective) & Calculate R:R

Know exactly when to exit a winning trade. And make sure the trade is worth the risk.

• Target: Identify the next significant S&R level in the direction of your trade. That is your initial profit target.
• Risk/Reward (R:R): Ensure Reward is at least 1.5x to 2x your Risk. (If you risk ₹10, you must aim for ₹15-₹20 profit).

Action: Mark your target level. Calculate the R:R ratio. If it's less than 1.5, this is NOT a Mission-worthy trade.

Step 6: Size Your Position (The 1% Rule in Action)

This is Rule #2 of the Mission Mindset. Over-leveraging can wipe you out, even with a great setup.

The calculation is simple:

(1% of Total Capital) / (Entry Price - Stop Loss Price) = Shares to Buy/Sell

Example: Capital = ₹1,00,000. Max Loss = ₹1,000. Stop Loss is ₹10 away. Shares = 100.

Key Insight: This mathematically limits your downside, protecting your confidence and your capital.

Action: Based on your capital, calculate the exact number of shares you would trade for the setup you chose.

Step 7: Execute & Review (The Mission Execution)

Your mission is simple: Execute the plan, then walk away.

• Execute: Enter the trade with your calculated shares. Immediately place your system's stop-loss order and a target order.
• Walk Away: Once your trade is placed with defined risk and reward, let the market do its work. Do not panic or micro-manage.
• Review: After the trade is closed, review your process. Did you follow all 7 steps? What could be improved?

Key Insight: A losing trade, executed perfectly according to these 7 steps, is still a "profitable" lesson that builds discipline.