What is Superperformance?

• It is turning small amount of capital into a big fortune by

investing in stocks with high probability of going up
200-300% or more in a relatively short period of time,
say a year or two.
 How to filter the watchlist further
Look for stocks with all these traits:

• Eliminate stocks trading below 30

• 200 MA is rising for at least 3 months
• 50 MA is above 200 MA
• Current Price is above 200 MA and preferably above
50 MA too
• Current Price is at least 100% up from 52 Week Low
 Buying
Patterns
• The only BREAKOUTS I trade
• VOLATILITY CONTRACTION PATTERN (VCP) by Mark Minervini
Evaluate
Post-Buying
•Follow-up Price
Action
buying
•Green days vs
Red days
•Up volume vs
Down volume
Generic Q&A Session
 For One-on-One
Coaching, Contact:
E-mail:
manasarora@live.co
 Stop Loss
• Plot 20 period ATR (Average Calculation
True
Range) indicator on a daily chart
• Calculate 2X of the above value
• Deduct 2X value from the buying price
• The resulting figure is your stopExa
loss
level mple
• 20 period ATR = 5
• 2X of 20 period ATR
= 5 x 2 = 10
• Buying Price = 100
• Stop Loss Level =
POSITION SIZE
CALCULATION
 Why I don’t trade
Derivatives/F&O?
• Companies with low supply (low float) of their stocks in
the market have the tendency to show a dramatic rise
in their stock price in relatively short period of time
compared to stocks listed in the derivative segment.
The derivative segment companies have larger supply
in the market compared to the supply of stocks of small
cap companies. So obviously, it requires much larger
buying power to see a similar rise in their stock price
 How much float is
acceptable?

• 5000 crore worth of shares or less in the market, lower the

better. Use Bseindia.com to find out the available float.
 For One-on-One
Coaching, Contact:
E-mail:
manasarora@live.co
1. To make money as a trader you have to know what the market is
going to do next.
Agree Disagree

2. Sometimes I find myself thinking that there must be a way to trade

without having to take a loss.
Agree Disagree

3. Making money as a trader is primarily a function of analysis.

Agree Disagree

4. Losses are an unavoidable component of trading. Source: Trading in the

5. My risk is always defined before I enter a trade.
Agree Disagree

6. I wouldn't even bother putting on the next trade if I wasn't sure

that it was going to be a winner.
Agree Disagree

7. My methodology tells me exactly under what market conditions to

either enter or exit a trade.
Agree Disagree

8. Even when I have a clear signal to reverse my position, ISource:

find it Trading in the
9. I have sustained periods of consistent success usually followed by some fairly
drastic draw-downs in my equity.
Agree Disagree

10. When I first started trading I would describe my trading methodology as

haphazard, meaning some success in between a lot of pain.
Agree Disagree

11. I often find myself feeling that the markets are against me personally.
Agree Disagree
Source: Trading in the
12. As much as I might try to "let go," I find it very difficult to put past emotional
13. A trader's job is to identify patterns in the markets' behaviour that represent an
opportunity and then to determine the risk of finding out if these patterns will play
themselves out as they have in the past.
Agree Disagree

14. Sometimes I just can't help feeling that I am a victim of the market.
Agree Disagree

15. When I trade I usually try to stay focused in one time frame.
Agree Disagree

16. Trading successfully requires a degree of mental flexibility far beyond the
Source: Trading in the
scope of most people.
17. There are times when I can definitely feel the flow of the market; however, I
often have difficulty acting on these feelings.
Agree Disagree

18. There are many times when I am in a profitable trade and I know the move is
basically over, but I still won't take my profits.
Agree Disagree

19. No matter how much money I make in a trade, I am rarely ever satisfied and
feel that I could have made more.
Agree Disagree
Source: Trading in the
21. The most important component in a trader's ability to accumulate money
over time is having a belief in his own consistency.
Agree Disagree

22. If you were granted a wish to be able to instantaneously acquire one trading
skill, what skill would you choose?
_____________________________________

23. I often spend sleepless nights worrying about the market.

Agree Disagree

24. Do you ever feel compelled to make a trade because you are Source: Trading in the
afraid that
25. Although it doesn't happen very often, I really like my trades to be perfect.
When I make a perfect call it feels so good that it makes up for all of the times that
I don't.
Agree Disagree

26. Do you ever find yourself planning trades you never execute, and executing
trades you never planned?
Yes No

27. In a few sentences explain why most traders either don't make money or aren't
able to keep what they make.
__________________________________________________ Source: Trading in the
__________________________________________________
Mind set of a
successful
Acceptance trader
of the following
• Anything can happen
truths:

• You do not need to know what will

happen next
• Thinking in probabilities
• Living in the now moment
• Every moment is unique
 Holy Grail
Of Trading
Right Mind Set + Risk & Trade Management +
Trading System = Holy Grail
Should trading be your primary
source of income?
 How to limit your
•Follow drawdown?
5-6% rule
What to do in a
losing streak?
How to compound
your gains?
 Significance of
Trade Journal
You will get the following
information:
• Number of winners
• Number of losers
• Average win size
• Average loss size
• Risk/Reward ratio
• Average number of holding days
for a winning position
 For One-on-One
Coaching, Contact:
E-mail:
manasarora@live.co