RULES TO FOLLOW (OR ELSE YOU WILL BE REMOVED FROM THE CHANNEL

WITHOUT NOTICE)
1. Do not ask views (targets or stop loss) on any stocks discussed in Chart Whispers YouTube, Public Telegram
Channel or any other platform. Those are not part of ECTM program. Take your own decisions if you trade
based on that.
2. Do not ask questions like, “Sir, what to do with Reliance, should I hold or exit?” etc. All the details of the
trade like Stop Loss and Target will always be given in the ECTM Channel. Sometimes, targets will be given
later. Be patient.
3. When Stop Loss or Target is hit, do not ask whether to exit the trade. Always exit the trade and do not wait
for a separate message as it may not be given.
4. Often, the price may move rapidly, and you may not be able to enter the trade. In that case, you can enter
within 1% of the entry price. Do not send messages that you could not enter the trade. Nobody can do
anything about that.
5. Do not send your stocks, views, opinions, charts, etc to us.
6. Do not ask queries on charts / technical analysis / acronyms. To learn that, join Classic Trading Course - LINK
7. Do not ask whether to re-enter the stock if SL or target is hit. The answer is always - NO.
8. Do not ask how to buy or sell, how to place orders, etc. Contact your broker to get help.
9. Do not message us if you find that your broker does not allow you to trade some stocks, contact them to get
it solved.
10. If you are unable to understand any Risk Management concept as explained below in the document, you can
ask us on Telegram @JoinECTMBot.
11. We will be happy to see your trade screenshots and your profits. You can send those at @JoinECTMBot on
Telegram.

ONCE AGAIN REPEATING, IF ANY OF THE ABOVE RULES ARE BROKER, YOU WILL BE REMOVED FROM THE CHANNEL.
WE RESERVE THE RIGHT TO REMOVE ANY MEMBER AT ANY TIME.

BASIC TERMINOLOGIES:
Trading Capital: It is the amount which you set apart for trading. It can be in the form of cash or collateral.

Entry Price: The price at which you enter a trade. For easy understanding, we will consider it as a Long Trade. So,
entry price is your buying price.

Stop Loss: The price at which you exit the trade at a loss. It should be determined before taking the trade. If stock
price hits ₹95, you exit the trade and book loss. Not exiting the trade at Stop Loss price is one of the biggest mistakes
being made by traders.

Target: The price at which you exit the trade at a profit. It should be determined before taking the trade unless you
know how to effectively use Trailing Stop Loss concept.

Trailing Stop Loss: It is a method of Trade Management where no target price is determined in advance. Rather, as
the price starts moving in our favour, we keep raising our Stop Loss higher and higher. At some point, that stop loss
gets hit and we exit the trade.

Long: means to buy first and sell later.

Short means to sell first and buy back later.

Acronyms like BO, RT, ATH, Blast / WigWag: These are technical analysis concepts taught under the Classic Trading
Course. It is recommended to complete the Classic Trading Course to take the best advantage of ECTM program.
RISK MANAGEMENT
Risk Management For Equity Cash Trading:

You can have two models for Risk Management. It is your choice which method to use. Both methods have their
advantages and disadvantages.

1. Risk Per Trade Method

2. Percentage allocation of Capital Method

A. Risk Per Trade Method

This method seeks to keep the risk constant on each trade. To understand this method along with Risk Management
Basics, please watch these four videos - ENGLISH / HINDI

B. Percentage allocation of Capital Method

This is a very simple method wherein you have to allocate a certain fixed percentage of your capital to each trade.
One can allocate 10 to 25% on each trade. If you allocate 10% on each trade, you would be able to take ten
simultaneous trades in your account. Similarly, if you allocate 25%, you will be able to take four simultaneous trades
in your account.

Advantage: Very easy and quick calculation

Disadvantages: Risk on each trade will be different. Let’s say, you decided to put ₹ 20,000 in each trade. Consider
two trades as given below:

1. Buy Reliance at 2000 with Stop Loss of 1920

2. Buy Cipla at 800 with Stop Loss 760

If both the trades fail, you will make a loss of ₹ 800 on Reliance and ₹ 1000 in Cipla.

EXIT METHODS:
There can be two methods of placing stop losses (SL) and targets. It will be notified to you along with the idea.

1. Advance Order Method.

2. Closing Basis Method.

A. Advance Order Method

When you get a trade idea is like this: "Long Reliance at 2000 with SL 1970 and Target of 2060.

It means you have to buy Reliance at 2000 or below. Then, immediately place SL order at 1970. Remember to place
SL orders everyday till the trade is on.

B. Closing Basis Method

i. When the trade idea is like this: "Long Reliance at 2000 with Daily SL 1970

Here, you have to buy Reliance at 2000 or below. But SL method is different. Daily SL means that when the market is
about to close DAILY (after 3:20 pm), you have to check whether price is below 1970. If it is below that, you have to
exit the trade and book loss.

When the trade idea is like this: "Long Reliance at 2000 with Weekly SL 1970

ii. Here, you have to check weekly that is on Friday after 3:20 pm, if the price is below 1970, only then you have to
exit.
DISCIPLINE:
It is important to stick to entry prices, stop losses and targets.

1. Follow a consistent Risk Management Method.

2. Avoid averaging.

3. If the trade has already moved up, do not buy at higher prices. Wait for it to come to entry price. However, if
target is already hit, do not enter that trade as it’s a completed trade.

4. Always exit the trade if stop loss or target is hit.

5. If SL is hit and you could not exit the trade and then, the price moves up. You can stay in the trade and put SL
order again.

6. The complete trade plan (entry price, stop loss) and follow up (target) will be shared in the channel. Please
do not message us unnecessarily or else you will be removed from the channel without notice.

Trading Psychology
11 videos: ENGLISH / HINDI

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