Expert Trader Ghanshyam made 1000% gain (in 3 months) from the Bank Nifty & has explained his setup

Discussion in 'Traders Corner' started by Michael Gonsalves, Oct 29, 2022.

  1. Michael Gonsalves

    Michael Gonsalves Member Staff Member

    Jun 26, 2016
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    Bank Nifty fulfills prediction of NR7 move & gives 2200 points

    Ghanshyam had rightly alerted us (link) in mid-October 2022, when the Bank Nifty was stuck in a narrow range of 38500 to 39300, that it is scheduled to make an explosive move and that we have to be prepared for that. He had stated that if the Bank Nifty closes above 39300, we should expect a target of 40500.

    This worked out very well because the Bank Nifty surged almost immediately thereafter and touched a peak of 41500 on 28th October, giving a return of 2200 points since Ghanshyam's prediction.

    No doubt, traders who would have loaded themselves with Bull Call spreads or Bull Put spreads would have effortlessly made a lot of money.


    What is the NR7 trading strategy?

    Now, Ghanshyam has painstakingly explained the entire concept of NR7 with a number of practical examples so that we can also train ourselves to identify it before it happens.

    Live trading yields gain of 1000% in just 90 days (Gain of Rs 26.3 Lakh on capital of Rs 2.5 Lakh)

    In August 2022, Ghanshyam had made it clear that because he has already exceeded the target in his main account by a wide margin, he will no longer trade in it. Instead, he will do live trading in a small account with a paltry capital of Rs 2.5 Lakh to show his followers how it should be done.

    He has been diligently documenting all his everyday trades.

    Presently, three months later, the effect of that live trading is that a capital of Rs 2.5 lakh has yielded a gain of Rs. 26.38 Lakh, translating to an incredible return of 1000%.


    Take small trades, be consistent, gain experience

    Ghanshyam repeatedly emphasized that consistency is most important. We should never be greedy. We must aim to make small profits & avoid big losses. Trading set-ups are a mere tool. All of them make money. However, to be a consistently profitable trader, we have to pay attention to our mindset, our psychology, position sizing, money-management and risk-management. We should also diligently follow the rules of the trading set-up and not deviate from them.

    He also explained that we have to gain experience and confidence, which can only come by taking a large number of small trades over a couple of years. If the trades are small in size, we will have the ability to hold on to it and see it to its logical conclusion. This will tell us what went wrong and what went right and how we could have capitalized on the right trades and salvaged the wrong ones. If we do this consistently over a number of years, it is evident that we will learn the nuances of trading.

    Take big trades by risking past profits (never risk the capital)

    Ghanshyam also pointed out that we should aspire to take big trades only after we have created a buffer of profits. We will never have the confidence to take big trades from the capital. However, if the capital is intact and we are only risking some (not all) of the past profits, our confidence level and holding capacity will be high.

    He also warned that we should avoid taking trades with per-conceived profit targets. While we should be clear about our stop-loss and strictly follow it, we should leave the profits to the market. The market has the potential to reward us with 10 points and even with 1000 points. Such an attitude of not worrying about the profits creates a positive mental attitude and enables us to focus on the chart and the trading set-up, he advised.

    Small daily gains add up to big gains

    Ghanshyam also pointed out that the gains made by him during the live trading are mostly small and petty profits of a few thousands. Only a couple of trades have yielded big gains in lakhs. However, the cumulative effect of all trades is the explosive overall gain of 1000%.