Trading Trick That Changed the Game for Real Traders

In the world of financial markets, one technique or “trading trick” can be the difference between everyday outcomes and game-changing success. Stories of real traders who leveraged clever yet simple strategies show that anyone, yes, even you, can sharpen their approach and unlock new levels of trading achievement. Today, we dive into the proven methods that have shaped fortunes, with practical insights for traders in India and beyond.

The Power of a Trading Trick: Inspiration from Real Success

Picture this: You're watching markets move, armed with just a screen, a sharp mind, and a hunger to learn. This was the starting point for Takashi Kotegawa, better known as BNF, a legendary Japanese trader who famously turned modest savings into millions. He accomplished this eye-watering feat not through endless predictions, but by developing creative, disciplined trading tricks.

Let's unravel tricks like BNF's and others, and give you the tools and confidence to build your own version, using the fundamentals of RSI strategy, price action trading, price action strategy, and trend following.

BNF's Trading Trick: The Fast Lane to Millions

Takashi Kotegawa (BNF) became famous by spotting patterns and acting on them with confidence. One of his most notable moves involved the J-Com Mizuho trading error, where he took advantage of a rare market event with lightning-fast reactions. But BNF's core tactics reveal tricks that any committed trader can adopt.

1. Using RSI Strategy

BNF often relied on the RSI strategy (Relative Strength Index), a momentum indicator that helps spot overbought and oversold conditions. Here's how you can use it, just as he did:

• Identify Oversold Stocks: A stock with an RSI below 30 might be oversold, signalling a potential rebound.

  
  

• Look for Divergence: If price makes a new low but RSI doesn't, it can be a sign of a reversal.

  
  

• Combine with Price Action: BNF used RSI in tandem with a simple price action strategy, waiting for a reversal candle (like a bullish engulfing) as his entry trigger.

2. Discipline with Price Action Trading

Rather than cluttering his screen with multiple indicators, BNF focused on price action trading. He read candlestick formations, such as hammers (possible bottoms) or shooting stars (tops), and let price tell the story. This method is accessible, requires no expensive tools, and is just as powerful in Indian markets as anywhere else.

3. Trend Following

Instead of trying to catch every swing, BNF adhered to trend following. He would ride the main move, sell most of his position after a rebound, and let the rest run if the trend stayed strong. This approach will help prevent the “death by a thousand cuts” that comes from overtrading.

4. Risk Management

Though not flashy, this might be his greatest trick. BNF kept losses small and never risked more than 1% of his capital on a single trade. With proper risk controls in place, he survived inevitable setbacks while capitalising on big wins.

More Trading Tricks: From Global Pros to Indian Markets

The brilliance of these trading tricks is that they're universal. They rest on timeless principles: RSI strategy, price action trading, price action strategy, and trend following. These work whether you're trading the Nifty, Sensex, commodities, or forex.

Price Action Trading for Indian Markets

• Candlestick Patterns: Traders in India often rely on clear patterns, like pin bars, double bottoms, or head and shoulders.

  
  

• Support & Resistance: Identify these zones on your chart. When the price makes a bounce here, it's often an early entry signal.

  
  

• Sequence of Highs and Lows: If the price consistently makes higher highs and higher lows, you're likely in an uptrend—an ideal scenario for trend following.

RSI Strategy Applied Simply

• When RSI drops below 30, start looking for a price action confirmation: this could be a big bullish candle, a hammer, or a “V” shaped bounce.

  
  

• Don't trade purely off RSI. Always check if a price action strategy or candlestick setup supports your idea.

Trend Following Made Easy

• Use one or two moving averages (like the 50-day and 200-day simple moving averages) to spot the trend direction.

  
  

• Enter in the trend's direction when price action confirms momentum.

  
  

• Use a trailing stop-loss to lock in profits as the trend advances.

Example: Trend Following in Indian Equities

Suppose Tata Motors shares have been closing above the 50-day SMA for several sessions and making new highs. A trend follower could wait for a brief pullback, watch for a bullish candlestick, and then ride the next wave up, adjusting the stop-loss to the previous swing low as the trade progresses.

Creative Confidence

What sets apart legends like BNF isn't magic. It is a creative application, patience, and a relentless focus on sharpening what works. You can craft your own trading trick by:

• Keeping a Trade Journal: Record why you entered each trade and how it went. Patterns will soon emerge, revealing your own “edge.”

  
  

• Testing & Tweaking: Use demo accounts or small positions to experiment with RSI strategy, price action trading, and new combinations until you find a method that feels natural and repeatable.

  
  

• Learning From Others: Watch how top Indian traders and global names use these tactics. The internet is full of case studies and analyses, just like this article.

Action Steps

1. Pick a Simple Setup: Choose one trading trick (like the RSI and price action combo) and practise it until you're familiar with the signals.

   
   

2. Backtest in Indian Markets: Review historical Nifty, Sensex, or popular stock charts to see how often your setup would have worked.

   
   

3. Risk Only What You Can Afford: Set a stop-loss every time. Later, when you feel confident, scale up your position sizes.

   
   

4. Join a Community: Whether online or in your city, trading groups help refine ideas, share feedback, and keep you motivated.

   
   

5. Stay Curious: Markets change, so keep learning and adapting. There's always a new trick waiting to be mastered.

Conclusion

The path from beginner to successful trader is built on small changes, discipline, and the courage to try something new. Takashi Kotegawa and many Indian retail traders turned basic strategies into fortunes, not through complex or secret systems, but by trusting proven trading tricks and adapting them with confidence.

You don't need a crystal ball to change your trading game. By harnessing tools like the RSI strategy, price action trading, and embracing trend following, you can build your own success story. The real trick is to stay disciplined, test your ideas, and never stop learning.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment, or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person.