- Not waiting for confirmation of a breakout.

- Not taking care of proper position sizing.

- Thinking of only the rewards, ignoring the risks.

- Jumping to trade without waiting for proper setup formation.

- Not putting SL in the system.

- Not calculating SL beforehand.

- Not having an exit strategy beforehand.

- Trading in FOMO (Fear of Missing opportunity).

- Not trailing the SL when in sizeable profit.

- Chasing the trades instead of waiting for them to come to you.

- Jumping from one trading style to another, without proper practice.

- Trying to recover the losses immediately.

- Not keeping the ego aside while trading.

- Putting all your capital in a single trade

- Not having a pre-defined loss limit for the day.

- Going for BTST without proper data reading.

- Taking an unnecessarily huge position in BTST.

- Not being able to trail the SL when in profits.

- Doing revenge trading.

- Not maintaining a journal of your trades & learnings

- Not giving importance to broader market direction.

- Giving too much importance to world market data. - Getting influenced by SGX Nifty.
The biggest psychological
barriers:
1.Gambling
2.FOMO
It is essential
3.Revenge Trading to have the following in your trading
plan:
*Risk
*Reward
*Exit point
*Entry point
*Position size
 Which are the biggest lies told by well meaning people in
trading?

1. Its impossible to make money in intra-day trading

2. You cant make money by buying options, its lottery ticket
losers buy
3. If you sell options just for theta gains, you will go bankrupt one day

4. Cash market is for newbies, professionals trade

only FNO
5. You cant be a trader and investor both

6. Most repeated lie told to a beginner is "That simple things don’t work" "If it was so
simple, everyone would have been a Millionaire"
What are the pitfalls I faced as a trader and how I overcame them:

1. Whenever I was not in a trade or planned to trade the 2nd session of the day, I
used to feel there is an opportunity all the time.

Instead of focusing on what the market is doing , I used to add the fact that I was
not in a trade, missing on something and assume there is a potential opportunity
when there was none.

Solution: If you are a beginners do maximum 2 trade

per day

2. Just one more indicator: Whenever I made a loss, I used to think something is
missing in my analysis or some indicator/pattern could have caught the move.
The truth was no indicator can forecast all the moves and losses will happen no
matter what.

Solution: After a lot of frustration and headaches, reduced my position sizing

and traded a smaller size until I got comfortable with losses.
All of us know losses are a part of the game. But the pressure (which we put on ourselves)
to immediately make a large sum of money is what stops us from truly realizing (not just
knowing) that losses are a part of the game.

But the truth is, the picture in live markets is very different. When a move is happening,
the way it unfolds is very different than how it looks after market close. And this results
in missing most of the moves for a beginner.

Solution: Created a set of rules for myself and decided that I will enter a trade only
when the rules are fulfilled in live market.
Upside:
Downside:
Opinion biased: How much can the market go up? How much can it go down. This kind of
thinking costed me more than every other mistake combined.

Solution: Constantly told myself that I don't control price movements, I can only
participate in them. I have one job - Follow the price. There are players smarter and with
deeper pockets than me. I have to follow them and not try to force my bias on the
markets.

It took quite sometime to get used to it.

Trade planning; Many say plan your trade and trade your plan. But many times the
market does not behave or open like we expect.

It is our ability to make effective real time decisions that will decide whether we can be
successful traders in the long run or not. Takes a lot of practice, exposure to get a grip
on our emotions and make good decisions in live markets with the info available.

After a series of losses, I used to feel dejected or wonder if I am not "smart

enough" to analyze markets correctly and be a successful trader.
A trading journal is one of the most effective instrument's of performance management The record of
Entry, Target's and SL of each trade can enable you to track the efficiency of your system and to
review it daily for better output and reference.

Remarks about why you took a trade and if any lessons learned can be equally valuable to track the
progress as well as study the mistakes made when entering or exiting a trade. By observing these
little details, A trade can be examined thoroughly.
Not only this, But Also write about your emotions which your experienced and how was the market
condition like so that you don't fall in that very trap which makes you inclined to unplanned action.
These details help us to build a foundation for better execution and examination
Documenting every trade can help define your strengths and weaknesses as Trader and validate
them. Having a trading journal is a great way to stick to a trading plan. Most of us tend to lose
money because of unplanned moves, FOMO or even Impulsive trading.

Rather than a handwritten journal, You can even go around with your chart which define the trade.
Save the charts At the end of a week or month, Go back and see what you did. Notice common
mistakes, Spot your strengths. Highlight the areas you need to work on.
1. The more you sweat during practice , the less you will bleed during war - " Take time in learning ,
take small steps , increase your observation power , try to learn from good traders around you , the
day you stop learning , you're dead. Never hesitate to ask queries to your friends/seniors/juniors.
Always be curious to explore new things. Learning is a never ending process that will keep your
mind alive and working.

2. Don’t Try To Copy Anyone - Everyone is different ! Don’t get fascinated by other people's
performance. You are your own hero , everyone has its own
mindset/capital/skills/strength/weaknesses. Don’t disturb your mental peace by comparing your
trading results with someone else's. Comparison will always lead to disappointment , if you ever feel to
compare , compare with someone who is doing lesser than you. Everyone is unique , try to find your
edge and work without thinking of what others are doing or what anyone will say. Just focus on what
you are doing

3. Never loose more than X% of your capital in a single go - If you follow this rule , i promise you will
never blow up your account or be a looser at trading. Always risk x% of your capital in a
trade/day/week. Have quantities in such a way that if SL hits you looses only that X% of amount you
decided. This will ease your trading i promise and you will thank me later. Manage risks , profits will
"Paise ka naa jaana bhi aana hi hota hai" , trading is a never ending game , so no regret or revenge trading.
Theek hai aaj nahi banaya paisa , lekin capital toh bacha liya , capital rahegi zindagi bhar trade kar lenge ,
but agar capital hi nahi bachegi toh kya trade karenge.

4. Emotions are harmful to your trading capital- Fear , Greed , Anger if you can control these while trading ,
you are a step close towards a successful trader. Try to act like a computer or an employee who is
managing your capital , because if you will not there are chances that you may do great mistakes while
trading. Follow your trading plan as if you are a software who is running according to your trading
setup/rules. Emotions play a big role , although very less people in India emphasizes on it but believe me if
you do you'll feel the change.

5. Don’t start spending your trading profits like a immature child. Keep using the profits , and compound
your trading capital , slowly increase the quantity and your position sizing along with good risk
management.

6. Try to note your mistakes- Always have a trading journal where you will note down your mistakes , and
will try to correct them and never repeat. Mistakes that keep repeating becomes your Habit , so just place
sticky notes behind your trading screen and avoid them next time.

7. Just follow your trading setup with full dedication and see the magic.
9:15 TO 11 AM 11 AM TO 12:30 PM 12:30 TO 3:15 PM
The first thing you should know is that Options are contracts of securities (underlying assets) that
we can buy or sell in options trading.

Options contracts are generally available for-

All derivatives stocks (the stock which are included in Futures & Options by stock exchanges)

Index such as Nifty 50, Bank Nifty, and Nifty Fin Service, etc.

Commodities such as Crude oil, Copper, Gold, Silver, Zinc, etc.

 Options Basics - Calls, Puts
OPTION BUYING
• Buying a Call (Long) = Bullish
• Buying a Put (Short) = Bearish

OPTION SELLING
• Selling a Call (Short) = Bearish
• Selling a Put (Long) = Bullish
What are the two types of options?
There are basically two types of option contracts. These are call option and put option

i) Call Option – which are considered positive by nature. If the price is expected to rise, we buy the call
option.

ii) Put option – Which are considered negative by nature. If the price is expected to go down, we buy a
put option.

What is expiry date or expiration date in options

trading?
All option contacts (derivative contracts) that we buy or sell are valid for a limited period called the
expiration date. These contracts may be valid for one week or may expire in months.

You should keep in mind the validity of the contract at the time of purchase. These contracts usually end
on Thursday (the last Thursday of the week or month).
 what is strike price or exercise price in option trading?
All option contracts are available at different fixed prices known as the strike price or the exercise price. The
availability of the strike price depends on the spot price of the underlying security.

All call and put option contracts are named separately based on the strike price –

•ITM (In the Money) Option Contract – For a call option, when the strike price is less than the spot price
of the underlying security, it is called in the money option contract. But for a put option, Strike Price> Spot
Price.

ATM (At the Money) Option Contract – An option (call or put) contract is called at the money, when the strike price
is equal to or nearly equal to the spot price.
The price of an ATM contract is relatively low compared to ITM.

OTM (Out of the Money) Option Contract – For call options, when the strike price exceeds the spot price of the
underlying security, it is called an out of money option contract. But for a put option, Strike price
OTM option contracts are relatively very cheap but if the price trends are not favorable and it remains OTM on the
expiry day, it becomes worthless and cannot be exercised by the option buyer.
What is Support and Resistance ?
Support is an area for price , where it halts due to demand of the stock at that price .
Resistance is an area for price ,where it halts due to Supply of the stock at that price .
You can use Any time frame for Drawing S/R and it works on all time frames . Whenever the Price
Reverses from an area

for more than 2 times that area can be called as S/R . You can use Line Tool Or Rectangle tool to plot
this on charts .
 1. Horizontal
2. Moving Averages
3. Trendline
4. Psychological Numbers (100 , 200 ,500,1000 etc)

Reversal of Polarity .

Whenever Resistance Breaks , it tends to act as support and Whenever support breaks it
tends to act as resistance
What is Breakout/ Breakdown ?

Whenever Resistance Breaks , it is know as BREAKOUT.

Whenever Support Breaks , it is know as BREAKDOWN.

Confused between connecting wicks or bodies while drawing a trendline ?
Our main aim to draw trendline is to get maximum points of price on a line . It can be
through wicks tails or body and there is no fixed rule !
Trendline as Trailing Stop Loss.

1. Trending stock Tends to pullback near Moving averages and trendlines .

2. This could be areas of fresh buying or you can shift your Stop loss to upside
3. As soon as trendline is broken then you can sell a stock and take reverse position
1. Trendline
2. Moving Average
3. Fibonnaci
4. Pivot(CPR)
ARE YOU STILL MAKING PLAN BEFORE MARKET OPEN?
HERE'S OUR CPR TEMPLATES

WHEN TO LOCATION WHEN NOT TO

TAKE THE
TAKE TO TAKE INTRADAY
TRADE? TRADE? TRADE?
 CPR width analysis

There are 3 kinds of CPR width

 Wide
 Narrow
 Average CPR Width
Wide CPR -The market is expected to be "RANGEBOUND" Therefore it is important to notice the width, so that on
that if you spot a Reversal trade - it will have a higher probability of success .
Therefore you can increase your quantity and on those days if you spot a breakout trade - kindly reduce your
quantity, for a proper risk management.
Narrow CPR - It shows a trending breakout market. You have to look out for breakouts of Previous Day Low/High
(PDL/PDH) or look for pivot break-out or even the CPR itself. You can trade with double quantity , especially if the
break-out is happening in the early hours.
VIRGIN CPR
 As the name suggests - VIRGIN - ( Virgin by price)
 It means a CPR is formed by the price action and then the price never came back to those CPR levels -
 It usually happens at the peak of uptrend in the stock and downfall starts .
Setup 1: Bullish Overlapping Timeframe: 5 Min
Setup 2: Bearish Overlapping Timeframe: 5 Min
Higher Value CPR Relationship:
Setup 1: Bullish CPR Test Timeframe: 5 Min
Price open above CPR and Tests CPR (BUY)
Setup 2: Previous day low test
Timeframe: 5 Min
Price open Below CPR
Bullish Test of PDL/S1(BUY)
Case 2:
Setup 3: Trend Reverse Timeframe: 5 Min
Price open Below CPR and pdl. Look to sell below 5 min candle low
Setup 4: CPR Breakdown Timeframe: 5 Min
Price open Above CPR . Look to sell below 5 min candle breakdown
CPR
Setup 1: Bearish CPR Test Timeframe: 5 Min
Price open below CPR and Test CPR (SELL).
Setup 2: PDH/R1 TEST Timeframe: 5 Min
Price open above CPR and pdh/R1Test (SELL).
Setup 4: Price open below CPR Timeframe: 5 Min
Look to buy above CPR 5 min candle close (buy)
shows how the cpr is developing as the day is progressing.

The colour of the range is red when tc is below bc and green when tc is above bc .

While calculating the value of cpr , the high is the high from starting of the session and
low is the low from starting of the session till that specific candle.

This also shows that the trend is developing.

If the colour is red and the range starts widening, it means downtrend has started to
develop and
when the colour is green and range starts widening, it means uptrend is developing.
Now let's see how CPR can be use for Swing or Positional Trading.

Time frame would be Daily or Weekly.

So use Monthly CPR in case of Daily chart and Yearly CPR for Weekly chart.

One can use an hourly chart as well to find out short-term trades with
Weekly Cpr.

Best part of CPR is one can use any time frame and appropriate CPR
calculation time

frame to find out decent trades from intraday to investment.

1) Mark day high and low at 1pm , if at 1:30 or after 1:30 there is any
breakout or breakdown take entry .

2) Premium 15-35.
NIFTY BANK NIFTY
IT, MEDIA, METAL, OIL HDFC,ICICI,SBI, KOTAK etc
,PHARMA etc
NIFTY IT >> 18% NIFTY BANK >> 35% RELIANCE >>12%
1. Open daily chart- mark supply / demand . Use CPR indicator with monthly CPR to mark important
key level

2. Open hourly chart .use weekly CPR to mark key level

3. Open 5 min chart and use tomorrow CPR to find key level

4. Mark Virgin CPR

1. When a big range is breakout/breakdown
2. On Thursday after 1:30 pm, if day low or day high is break or after consolidation market break zone
a) Placing SL below or above Important CPR level (like daily/weekly/Monthly
R1/S1 etc)

b) Placing above or below PDH, PDL

c) Placing above or below CPR

d) Placing below or above 20 SMA

e) Placing below or above 9 EMA

f) Swing high/low
Today r3/h3 and s3/l3 is inside yesterday r3/h3 and s3/l3
1.Bank Nifty's move depends on moves of mainly 5 banks – HDFC Bank, ICICI Bank, SBI, Kotak & Axis bank.
2.Open charts of each of these banks daily & see which is near an important resistance or support, that can affect Bank
Nifty's movement next day.
3.HDFC Bank (26%) & ICICI Bank (23%) are the biggest contributor in Bank Nifty : give more importance to these two.
4.SBI, Kotak & Axis bank each contribute around 11%, but if two of them align with each other & HDFC Bank & ICICI are
neutral, they'll decide the direction.
5.SBI being the major PSU bank, can move opposite to these giants & create a turbulence, keep it in mind.
6.Always know any upcoming event related to these Banks that can affect your Bank Nifty trades - e.g - results etc.
7.Always draw the important levels 1 day before in chart - you won't get time in live market.
8.Draw Support & Resistance lines in Bank Nifty as well these Bank's charts.
9.For volume analysis - use Futures chart of Banknifty. For getting price levels, look at spot charts.
10.Tradingview has started to give volumes in the spot chart of BankNifty, (aggregate of the volume of all
constituents) that's not very reliable : avoid it.
11.If OI data buildup of any of these major banks bullish & other banks flat, that bank will take BankNifty up
next day.
12.Use 1D TF to mark major resistances & supports : they will be respected by BNF in almost 90% cases. Also
use monthly CPR in daily chart.
13.Use 1 hr TF to mark intermediate resistances & supports, they'll hold for next few days. Also use Weekly
CPR in 1hr chart.
14.Use 5 min TF to mark immediate resistances & supports. They are most important for short term. Also use
Tomorrow CPR in daily chart.
15.Can use 1 min TF in last hour of expiry for scalping, coz the moves are very sharp & options very volatile ;
Do it only if you are a pro scalper.
16.Expiry of BankNifty gives huge scalping opportunity provided you are skilled enough - keep practicing.
17.Always wait for good entry don’t jump anywhere in FOMO.
18.Don't trade BankNifty just for the thrill ; it has power to wipe out your account completely. Always go
with proper planning.
19.You should have an Exit strategy on your chart.
20.For Option buyers, the best Exit strategy is to cut the losses as soon as possible.
21.Risk management for Option Buyer starts 'Before' taking the trade : in form of your Quantity & SL
22.Always have a fixed daily loss limit & loss limit per trade.
23.If the daily loss limit reaches, 'STOP' trading for that day.
24.The quantity of Bank Nifty Options you'll buy will come from (dividing your loss limit by how many
points SL you are taking) : Never break this rule.
Example- 1000/20=50 quantity
25.Never increase your SL after you enter the trade.

26Decrease your SL once you start making a significant profit in that trade.

27.Never book profits in all your position once in BankNifty; it has the potential to go further beyond your
imagination.
28.Always book half quantity & trail the SL in the rest; this will ensure you get maximum profits from
the trend.
29.Decrease your position size to half when taking trade against the major trend.
30.BankNifty gives huge opportunities in reversals: SL small, targets big.
28.Trading reversals require huge practice & great conviction.
29.A conviction will come from data of BankNifty as well as Banks, practice you'll have to do.
30.Paper trading in Bank Nifty will look easiest - coz it follows Price action beautifully, but live trading Bank
Nifty is most difficult.
31.if you are a beginner try to trade Bank Nifty with one lot ; you'll understand the power of this beast when
you jump in the ring.
32.Bank Nifty is traded by almost all the major trading firms all over the world, using the same chart you are
seeing; keep this in mind.
33.Even if your predicted direction is correct, Bank Nifty will not go there without turbulences, don't
change your direction with minor moves.
34.BankNifty always gives importance to major levels ; 39K, 38K, 38.5K etc, plan your trades around these
levels for high Reward: Risk.
35.If you are already in trade & Bank Nifty is reaching these levels, better to book profits in half position & be
safe, it can revert immediately.
36..Always estimate target seeing chart of Bank Nifty only - not of your option.
37.BankNifty will not be affected by anything except the demand & supply of its components.
38.Opening may be affected by World market, but the course which BNF will take afterward gets decided
by data of Bank Nifty & it’s components only.
39.BankNifty is a major contributor to Nifty, keep tracking BankNifty even you just trade in Nifty.
40.Around 65% of components of Finnifty are components of BankNifty too, that's why we are getting
good amount of volatility in BankNifty.
41.While trading BankNifty on Tuesday, keep tracking FinNifty also.

42.Theta decay is maximum in BankNifty options on wednesday & Thursday, avoid taking huge overnight
position on wednesday.
43.Expiry day scalping in last hour depends on levels created by big players : a huge opportunity which
you shouldn't miss.
44.Focus on consistency : even if you capture 15 points of BankNifty options per day, you can double your
capital in 1 month, problem is we try to be big in single day & lose big in that process.
45.Never decide the direction of BankNifty based on just one candle color : look at all data points carefully.
46.Never trade in FOMO, if a trade is missed, focus on finding next good entry.
47You need not to be correct all the times & still make big money, the key here is Risk : Reward.
48.Never be overconfident with your analysis, anyone's view may go wrong at any point in time : keep SL.
49.Never rely on mental Stop Losses - you'll freeze when that level will come, always have SLs in system.
50.Options decrease in value with decreases in IV - never do Option Buying AFTER an event.
51.if you face losses consecutively for 2 - 3 days, better to stop trading for that week & come back fresh next
week.
52.if you face losses consecutively for 2 - 3 week, better to stop trading for that month & come back fresh
next month.
53.If Banknifty is trading in a range for quite sometime, chances are high that when it breaks that range,
options price will explode, due to covering of position by sellers. Find that range, enter when this explosion
starts.
 54.Keep riding the trend till IV rises & exit at first sign of IV drop. If IV drops, your profits can evaporate
quickly.
55.The Future Oi buildup of BNF will tell you the explosiveness of move coming next day.
Options OI buildup of BNF will tell you about the direction.
The highest OI buildup strikes act as S/R zone, initiate your trades around those regions.

56. On Friday & Monday, buy slight OTM & hold till they become ATM - take maximum benefit of Delta
takeoff.

57. On Tuesday & Wednesday - go with ATM to save from . On Thursday - buy ITM only.

58. BNF is much volatile & less forgiving than Nifty, practice on Nifty for 6 month if you are beginner
before switching to BNF.

59. If you make sizeable profits in morning session, risk only a portion of this profit in afternoon session.

60.If morning session goes in loss, can skip trading afternoon session for that day. If not skipping, go
with very light position.
61. As an Option buyer, volatility is your friend - Opening & closing hours present best opportunity to en
cash it.

62.Don't trade with big positions between 11:30 am - 1:30 pm, a lot of SL hunting occurs in this time.

63.Never average your losing position, this is the biggest account killer.

64.Always maintain a trading journal, this will help you most to correct your mistakes.

65.Never underestimate yourself. You have the ability to bounce back from any amount of drawback. The
fact that you are here with CPR TRADING Family is an indication in itself that you are very serious about
trading & will make a very good trader one day.
1. Top 20+ Trading Mistake Of Buyers
2. Psychology-- The biggest psychological barriers,
3. It is essential to have the following in your trading plan
4. Which are the biggest lies told by well meaning people in trading?
5. What are the pitfalls I faced as a trader and how I overcame them