Short Selling in Zerodha Kite – Live Trading Demo & Strategy - YouTube

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Namaskar, my name is Mukul, and welcome to Asset Yogi.

In this video, we'll see a live demo of short selling.

That means how can we earn money in a downtrend.

I also made a video on the concept of short selling so you can watch that.

But if you're good with the concepts, then continue watching this video.

So in this video, we'll see the demo of Mahindra & Mahindra.

I already took a position in the morning and I am recording this video on 15th April

Maybe, you'll watch it in the upcoming days.

So I took the position because I saw an unnecessary jump in Mahindra & Mahindra

in the last 1-1.5 weeks and it's going very volatile

So I thought that position can be made in it today.

I sold it for Rs. 373 and now we'll buy it and I'll discuss all this live

And with that, we'll see that how can we place short sell order directly and

I'll also show you that how can we place this order with a bracket order.

And as I told you in the previous video that short-selling can be risky

So whenever you're sure and you have a proper trigger that stock can go down today

Then only make a short position in that.

So watch this video till the end because we're going to see both ways

The bracket as well as a direct order.

Before starting the video, let me tell you that you can check out our

Master Investor Series which is absolutely free of cost.

And we discussed all the stock market-related concepts in details

You'll get links in the description.

In this video, I'll use Zerodha Kite.

You can use any platform, the concept is just the same.

In the same way, you can place orders there.

There may be some differences in the names and if you want to try in Zerodha,

The link is in the description, you can open your account by entering the details.

Let's now quickly start this video.

So Sensex today is 250 points down, it was up in the morning.

On any day, if you think the stock can go down then you can do short selling in that.

Today, I am shorting in Mahindra & Mahindra.

So let's go to the watchlist

And the price right now is at Rs. 354

Let's see its chart. In the morning, it was up and it went till Rs. 375

At that time, I got a chance and I sold at Rs. 373.

It depends on how you analyze a stock and also a little bit on your luck.

So I am in a good profit. Let's see what is my profit and loss.

So as you can see I sold 40 quantities. As you can see -40 quantity.

The average selling price is Rs. 373 and I am in profit of around Rs. 750.

And in terms of percentage, I am having a profit of 5% in a day.

And let's see how to take such trades.

First, I placed a sell order, and after that since I also have to cover my Stoploss.

So for that, I placed a separate order for Stoploss.

If I sold at Rs. 373 and if this stock would have gone up,

Then I would have been at loss.

Let's say my selling price was Rs. 373 and the stock goes up at Rs. 380

Then I would have been at loss. So since I have to limit that loss,

So I placed Rs. 377 as the Stoploss order

So it means if I want to buy it back, I'll do it at Rs. 377

And my loss will be 377-373= Rs. 4 per share.

And since I bought 40 quantities, so 40×4= Rs. 160 will be my maximum loss.

Whenever you short sell, place Stoploss.

Not only in short selling, In any trade, Stoploss is very important.

So I placed Stoploss here.

Now let's begin from the starting and see how we can place an order.

In fact, I'll also show a shortcut.

Let's say we want to short sell M&M, so firstly we have to sell it.

So the current price is Rs. 354. However, I took the trade in the morning itself when the price was Rs. 373.

But assume that the current price is Rs. 354

and your analysis says that it will go down from here till Rs. 340.

So you will sell this stock at Rs. 354 and how will you do it?

Go to Sell, I am showing you using 1 quantity.

So there are 2 ways, either you can place a limit order.

For that, write the price at which you want to sell it.

For example, it's around Rs. 354 and you think it will be good at Rs. 355 then place that price.

Place a limit order, after that write the disclosed quantity, for now, we're putting it 1.

After that Sell and your order will be placed.

And as the price will reach Rs. 355, your order will get executed.

Secondly, now we have to place Stoploss.

Once you placed a limit order of Rs. 355, after that you will go to Stoploss.

Now if you think that you can bear Rs. 3 loss per share, then we'll put here Rs. 358

And then go to Buy order

So if you want to buy a maximum at Rs. 358 we'll go to buy and then I'll put Rs. 358 here

And keep in mind that it is an Intraday trade, so select MIS always.

Watch the trading tutorial videos because I had explained all the orders in detail there.

So we'll place a buy order at Rs. 358 but this is a Stoploss order

And let's place a trigger price of Rs. 357. So as it will hit Rs. 357, your order will get triggered

And it will be executed at Rs. 358 and slide Buy.

So your Stoploss order will be placed.

Now let's see my order again.

I placed Stoploss order at Rs. 377 and now we're placing at Rs. 358

So I did the same thing in the morning.

Let's get back to our portfolio.

So as we placed Sell order currently at Rs. 355

I did it for Rs. 373 in the morning. So this is one way.

And if we want to square off the position, we'll go here and my profit is around Rs. 768-788

Now it may increase and I can wait but because we're doing it for a demo,

I'll exit here and I clicked on exit, the quantity is 40.

It is taking price automatically and now it is a Market order

so remember that it will get executed immediately.

A market order is selected by default and now we'll slide Buy and let's see

So my order is now completed. Now let's get back to our orders and it is now completed

And now go to portfolio and as you can see, the total profit is Rs. 770.

I bought 40 quantities so the total investment was Rs. 14920

on which I got a profit of Rs. 770 which is more than 5%.

So this was one way, in which you can execute your order in a sure shot way.

But there is one more quick way and let me tell you that as well.

I'm going to M&M and suppose I want to place a sell order

So I will go to limit and then I'll click on bracket order

which means you are trading in the bracket and you can set your Stoploss and target together.

So here you have to put the exact quantity.

I already made a detailed video on all these order types so you can watch that.

So let's go quickly.

Let's say we kept Stoploss of Rs. 3.

We wanted to Sell at Rs. 355 and the Stoploss was Rs. 358.

So I will put here 3 which means Rs. 3 Stoploss.

And now I have to put the target.

I think that this stock can go even more down then I'll put my target.

So I think that I can make Rs. 7-8 more so let's put our target Rs. 8

And you can also put Trailing Stoploss.

It means that your Stoploss will move down as your stock moves down.

I already discussed this in detail about this so you can watch that.

So for now, I am not putting any trailing Stoploss.

So here you can fill in the price at which you want to sell.

Currently, it's showing 354.9

and if you think that you can sell it at Rs. 355 which we selected earlier as well

So put Rs. 354 here.

And here we'll click on sell and your order will be placed at once

But there's a reason why I didn't put bracket order

Because the volatility is high in any stock, a Bracket or Cover order is not executed at that time.

So if you want to short sell in a sure shot way then you can do as I showed

Place a sell order and with that place a Stoploss order.

So you have to place 2 orders while selling

and you can exist finally when you want by clicking on it.

Or you have another option that you can place a separate Buy order

so the order will get canceled and net profit/loss will come in your account

So as you saw that we earned 5% profit in a single day

So it's not like you can make it each day because 5% profit in a day is too much.

It depends on your analysis and luck

But we don't have to focus more on the amount

Instead, we should focus on performing consistently.

So whether you invest or trade,

your purpose should be consistent and earn more profits by curtailing the loss.

That's why Stoploss is very important.

So that's it in this video.

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