Chapter 6 | 3 min read

First Trade on GoPocket

Introduction

You have learned charts, setups, stop-losses and position sizing. Now let us put it all together and walk through a complete swing trade from planning to exit, the way you would do it on the GoPocket app.

Step 1: Open Your Account

Download the GoPocket app from the Play Store or App Store. Open your demat and trading account online using your PAN, Aadhaar and bank details. Add funds to your trading account.

Step 2: Build Your Watchlist

Add 15 to 20 liquid stocks from your shortlist to a watchlist on GoPocket. Keep it separate from your long-term investment watchlist.

Step 3: Weekend Preparation

  • Check the Nifty trend. Is the market above its 50 DMA?
  • Mark support and resistance for every stock in your watchlist.
  • Remove stocks with quarterly results in the coming week.

Step 4: Find the Setup

LMN Ltd (hypothetical) is above its 200 DMA. It has fallen for 3 days from Rs 420 to Rs 396 and is near support at Rs 395. Today a green hammer formed with above-average volume. A buy setup.

Step 5: Plan the Trade

  • Entry: Rs 398 (just above the hammer's high).
  • Stop-loss: Rs 388 (below the hammer's low and support).
  • Target: Rs 418 (previous resistance).
  • Risk: Rs 10 per share. Reward: Rs 20. Risk-reward = 1:2.

Step 6: Calculate Quantity

Capital Rs 1,00,000. Risk 1% = Rs 1,000. Quantity = 1,000 / 10 = 100 shares. Investment = Rs 39,800.

Step 7: Place the Buy Order

  • Search LMN Ltd on the GoPocket app and tap Buy.
  • Select Delivery as the product.
  • Select Limit and enter Rs 398.
  • Enter quantity 100.
  • If you are placing it in the evening, place it as an AMO.
  • Review and confirm.

Step 8: Place the Stop-Loss

Once the buy order executes, place a Sell Stop-Loss order for 100 shares with trigger Rs 388. Remember that it is a day order, so place it again each day while you hold the stock.

Step 9: Manage the Trade

  • Day 3: price at Rs 409. Move stop-loss to Rs 398 (breakeven).
  • Day 5: price at Rs 416, near resistance. A shooting star appears.

Step 10: Exit

Place a Sell Limit order at Rs 415. Profit = (415 - 398) x 100 = Rs 1,700 before charges.

What If It Failed?

If the price had fallen to Rs 388, the stop-loss would have exited you with a loss of about Rs 1,000, exactly 1% of capital. Planned and controlled.

Step 11: Record in Your Journal

  • Stock, date, entry, stop, target, exit.
  • Setup type: hammer at support.
  • Result: +Rs 1,700.
  • Lesson: exited on shooting star at resistance, as planned.

Frequently Asked Questions

Should I start with real money?

Paper trade for 2 to 4 weeks first, then start with small quantities.

How many trades should I hold at once?

Start with 1 to 2 open trades until you are comfortable.

Key Takeaways

  • Plan every trade before placing it.
  • Use Delivery, Limit and Stop-Loss orders.
  • Record every trade in a journal.

Disclaimer: Stock name and prices are hypothetical. Investments in the securities market are subject to market risks. Read all related documents carefully before investing.