This is the trade i recorded yesterday. You will see every single step i take before risking my money. If you are a beginner, this video can help you understand how to execute trade using the V WAP indicator strategy. As you can see, the market is in a strong uptrend. It opened with a gap up.

We know it’s in an uptrend, because the price is trading above the V WAP line and the 200 Period moving average. If you don’t know the V WAP trading strategy, I have a detailed video on this channel about it, and why it is better than a moving average.

Right now, I’m trading option. But i also have Future of the same, opened on my second monitor. Future helps to analyse the trend direction even better. Since the price direction on the Future is down, I will look to buy the Put Option.

I have drawn some support and resistance areas with the red and orange lines. The green line is the V WAP indicator. On this put option, Since market is staying above V WAP line, we can tell it is in an uptrend. We will look to buy if the price comes near the V WAP. But we won’t buy blindly. We will wait for an entry signal near the line. It doesn’t have to be exactly on the line. An entry signal that forms, Little bit above or little bit below, will do just fine.

The price is about to touch our V WAP line. Like i said. We won’t buy as soon as it touches the line. We will wait for an entry signal. Right now, I’m also looking at 1 min candles to find an entry. Since there was a strong push down, price will take some time to go back up. There is no entry signal yet.

If you look at the future, It is near a strong resistance. Furthermore, it is also near the V WAP line. On the put option, The price is having a difficult time going further down. It has also formed a doji type candle. We will buy, and set the stop loss just below the swing low. I will also trail the stop loss aggressively. The reason i trade options, is because they make very big moves in a short amount of time. I trail my stop loss aggressively as soon as I enter a trade. If the price doesn’t go in my direction in few minutes, I will be happy to take a small loss instead of waiting and losing my original risk. Trailing my stop loss aggressively at the start, also helps me maintain a good risk to reward ratio in the long run.

But just because trailing the stop loss like this works for me, doesn’t mean it will work for you as well. The blue line will represent my stop loss.

The market is getting strong rejections from the top. Our stop may get hit. There we go. Made some quick money. Now, you might wonder, why i didn’t took profit at the top. Well it makes sense to book profit at the top. But i don’t know what’s going to happen in the future. In my trading history, I have had trades that made more than 700 percent. When i enter a trade, I don’t know if it will make 100 or 800 percent. But if it is going to make 8 times more money than my risk, I definitely don’t want to miss it by only booking 100 percent profit. That’s why I trail the stop loss. It also reduces the risk after i enter the trade.

Well, that’s it for today! Ended up green for the day. This was my 20th green day in a row.

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