
Master the 16 bucket money management system to control risk and position size, lowering losses for faster recovery and understanding how smaller losses require smaller returns to breakeven.
Divide your portfolio into 16 equal buckets of 6.25% to manage risk and position sizing. Empty a bucket when you spot an opportunity, focusing on money management and risk control.
Name each of the 16 positions to track and manage trades separately, using individual stop losses and an Excel trade journal for partial and full exits.
Learn to cap per-trade risk at 5% with a fixed position size (about 6.25% of a 100k portfolio) and use entry and stop-loss distances to sustain a 1:1 reward-to-risk.
Size each trade to cap risk per trade at 0.3125% of the total portfolio, about $312 on a $100k account, using a 5% stop loss to limit losses.
Assess total portfolio risk and the worst-case loss when fully invested. The theoretical maximum is 5%, but practical risk is lower due to stop losses and variable risk per trade.
Maintain practical portfolio risk under 5%, typically between 3% and 5%, by keeping unfilled positions in cash and using a 2:1 reward-to-risk setup to protect capital.
Calculate risk per trade in Japanese candlesticks trading by summing risk across positions and dividing by the number of positions, keeping per-trade risk under 5% and moving stops to breakeven.
Avoid putting all your money in a single stock; too concentrated portfolios expose you to losses beyond the theoretical 5 percent, especially when gaps down.
Balance concentration and diversification to manage risk in a stock portfolio. Learn how excessive diversification can cap portfolio gains and how position sizing affects overall return.
Build a four-stock portfolio with 25% exposure to each, pyramid entries as profits accrue, reinvest gains to finance risk, and never average down.
Limit your exposure to a single stock to 25% of your money; add positions only when profitable and ride the growth stock trend, following money management rules across the buckets.
Buying stocks offers greater potential than short selling, with long-term gains from growth stocks and no expiry; become an expert buyer and follow traders like William O'Neil and Mark Minervini.
Scale into winning stocks by pyramiding your position only as prices move in your favor, avoiding averaging down when a stock declines.
Always move your stop loss up as price rises and never move it down, using profits to finance risk and maintain equal position sizes.
Apply the 16 bucket money management system to keep average losses low, cap risk at 3-5% per position, with 6.25% per bucket, and build a 4-8 stock portfolio for growth.
Master exits and partial exits with a money-management focus, applying the 50% method to reduce, using price action, volume, and moving-average signals, including stop loss considerations.
Analyze a daily Ultratech chart: break of the resistance, enter with a stop loss, manage risk with staged exits, and watch for pattern signals like bear harami and bearish engulfing.
Master stop-loss movement and selling into strength on a daily chart breakout, applying 20-day sma context, high-volume candles, and progressive stop adjustments to protect profits.
learn when to sell and how much to sell using price action, volume, and the ten-day moving average in the level 19 japanese candlesticks mastery program.
Master pyramid into growth stock positions using breakout and pullback trades, managing p1 and p2 separately with stop losses, and keeping total exposure within 12.5% of the portfolio.
Scale into p1, p2, p3 by financing risk with profits, keeping portfolio risk under 5%, and manage breakouts and pullbacks around the 20-day sma and Bollinger bands with separate exits.
Observe a daily Tata Motors chart with a high-volume breakout, a sub-5 percent stop, and risk-managed entries using P1, P2, the 20-day moving average, and the Bollinger middle band.
Analyze a risky daily Britannia trade by examining resistance breakout, volume divergence, and low risk (under 2%), guided by a 16-bucket money management system and scaling into P7/P8 positions.
Scale into positions by pyramiding up and moving the stop loss up in breakout stocks, never pyramid down, focusing on uptrending stocks and staged entries (P1, P2, P3).
Learn how to manage money by moving stop loss levels upward in response to price action and high-volume breakouts, using a flexible framework rather than fixed rules.
On a daily Micron chart, enter on a high-volume breakout above resistance and move the stop up toward break-even using a four-step trailing framework (WSL1-WSL4), never lowering the stop.
Explore a daily timeframe chart for Chevron, identifying breakout entries on high volume and dynamically adjusting stop losses using candle patterns, rising windows, and break-even protection to reduce portfolio risk.
Analyze a daily timeframe chart of Indian oil to spot a high volume breakout from a multi tested resistance and learn to trail stop losses to protect gains.
Chart 5 demonstrates a breakout trade on an Indian stock, using break even stop updates, scaling in, partial exits, and a 16-bucket money management approach to protect gains.
Master the first principle of trading psychology: the decision. Do not move a stop loss down after entry; move it up if needed, and treat hits as business expenses.
Protect your break even as early as possible by securing a 1:1 reward-to-risk and rapidly moving your stop loss as profits accrue to lower portfolio risk and increase your capital.
execute the sell decision by taking partial exits on strength and weakness, moving stop losses up, and book profits regardless of overall market conditions.
Learn that trend trading is not about catching the bottom or top; it means buying at a price and selling higher than your cost to steadily grow your portfolio.
Master flawless trade execution by concentrating on precise entry and stop-loss placement, recognizing a bullish engulfing pattern, and avoiding basic mistakes like mis-selecting open versus low prices during pullback trades.
Identify and implement the five basic characteristics of a trading system, prioritizing simplicity so decisions are quick, with predefined scenarios guiding action.
Develop a fast trading system built on mechanical rules, reliable frameworks, and clear risk and money management, ensuring breakout trades are rejected if risk exceeds 5%.
Build a sound trading framework grounded in sound principles, avoiding fundamentally wrong assumptions, recognizing high volume breakouts through resistance lines, and using the 200-day moving average to identify downtrends.
Align your trading system with your personality by embracing patience and waiting for bigger gains, and choosing intraday, swing, or positional strategies accordingly.
Design a shockproof trading system that protects equity during extreme market conditions by moving your stop loss upward, following the five basic characteristics.
Identify the breakout trader style, which waits for a high volume breakout above a pivot point or resistance level. This approach trades only breakouts and avoids pullbacks.
Discover how pullback traders exploit mean reversion and avoid breakouts, waiting for profit-taking by small players while big players hold positions, turning pullbacks into up moves.
Hybrid traders master both breakouts and pullbacks, avoiding style drift by sticking to one primary trading style and becoming world-class at it.
Weekly traders practice extreme patience, focusing on weekly charts while treating daily data as noise and making decisions at week’s end. They trade breakouts or pullbacks within one time frame.
discover the stock picker style, a strict information-driven approach using fundamentals, technicals, and market conditions to select top stocks with low turnover, and learn five trading styles and drift avoidance.
All the Levels of The Japanese Candlesticks Trading Mastery Program are designed to help you :
Learn How to Trade Stocks, Forex and Commodities Using Candlesticks and Technical Analysis to Become a Professional Trader
In this course, I will teach you my 16 bucket money management system.
This can be customised to your risk taking ability (if you want to).
But the original framework can be used as it is.
Remember, as Steve Nison has said, "Candlesticks are a tool, not a trading system."
A complete trading system comprises of:
Filtering Criteria
Entry Strategy
Exit Strategy
Risk Management
Money Management
Trading Style
Position Sizing
Market Analysis
Psychology Management
Trade Management
Trade Journalling
Account Management
Daily & Weekly Routines
Trading Plan
Broadly, in this course, I will discuss the following topics:
Risk Management
Position Sizing
Money Management
The 16 Bucket Money Management System
Scaling into Positions
Scaling out of Positions
Movement of Stop Loss Levels
The 5 Basic Principles of Trading Psychology Management
The 5 Basic Characteristics of a Trading System
The 5 Different Trading Styles
Following is the universe of markets from which the charts for this course were chosen:
American Stocks
Japanese Stocks
Chinese Stocks
European Stocks
Indian Stocks
Learn concepts that apply to any type of trading. If you know how to read one chart, you can read them all. This course through its various levels will help you understand this unique and most primitive technique of trading. The Japanese Candlesticks Trading Mastery Program can be applied in any or all of the following areas of work :
Forex Trading / FX Trading / Currency Trading
Stock Trading
Commodity Trading
Options Trading
Futures Trading
Intraday Trading / Day Trading
Positional Trading
Swing Trading
Technical Analysis of Stocks, Commodities & Currencies
Price Action Trading
Chart Pattern Analysis
Cryptocurrency Trading
Standard Disclaimer: I am a SEBI-Registered Part-time Research Analyst (Registration No. INH000022279) registered under the SEBI (Research Analysts) Regulations, 2014, and supervised by the BSE Research Analyst Administration and Supervisory Body (RAASB). All content shared by me across my digital platforms is strictly for educational purposes only and should not be considered as investment advice, buy/sell recommendations, or trading tips. I do not provide personalized investment advisory services, I do not publish research reports, and I do not make buy/sell or price-target recommendations. My content is limited to an educational purpose only and does not constitute a research service or any other activity regulated by SEBI under my Research Analyst registration. Any securities or instruments referenced are used purely for education, analysis, and illustration and must not be construed as a solicitation, recommendation, or advice to buy, sell, or hold. Investing and trading in securities involve significant risk, and past performance is not indicative of future results. Please conduct your own due diligence or consult a qualified, appropriately registered financial adviser before making any financial decisions. I may or may not hold positions in the securities discussed at the time of creating the content, and such positions are subject to change without notice. I do not receive any compensation from third parties, including MarketSmith or Steve Nison; I have completed the basic and advanced candlestick modules on Steve Nison's platform purely as a student and am not affiliated with him or his website in any way.