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In this interview on the Desire To Trade podcast, Kunal Desai breaks down how he actually trades and teaches—why he focuses on U.S. equities, how momentum became his edge, and what it truly takes to be consistent. Kunal’s a high-energy day trader and mentor who’s been through the dot-com chaos, rebuilt, and now runs active rooms where he screenshares live orders and decisions. If you’re a newer trader trying to separate hype from real execution, this conversation shows why Kunal matters: he’s built a replicable routine around scanning, preparation, and accountability that turns theory into trades.
You’ll learn Kunal Desai’s momentum playbook—why he flips through 500–600 tickers nightly, tiers his watchlist, and marries technical entries with fresh news so a stock has “independent order flow” for the day. We’ll cover his strict risk and sizing rules, the expectation reset most traders need, and his step-by-step path from simulator to small size to scaling. By the end, you’ll know how Kunal builds business-level trading plans, tracks win rates and reward-to-risk by setup and time of day, and uses mentorship and accountability to keep emotions in check so the process—not luck—drives results.
Kunal Desai Playbook & Strategy: How He Actually Trades
Core philosophy: momentum that’s backed by fresh catalysts
Kunal Desai hunts stocks where momentum isn’t random—there’s a reason for the move, and it’s pulling in real order flow. The goal is to trade “in-play” names that can trend cleanly intraday rather than chopping around with the index.
- Trade only tickers with a same-day or very recent catalyst (earnings, guidance, FDA, partnerships, analyst upgrades/downgrades).
- Require relative volume ≥ 2x the 30-day average by the open; if < 2x by 10:00 a.m., drop it.
- Prefer names with independent order flow (trending while the index chops).
- Focus on U.S. equities priced between $3 and $100; avoid illiquid sub-$2 names and mega-caps unless they’re truly in play.
- Skip anything with an average true range (ATR) too small to make 2–3R moves intraday.
Pre-market routine & watchlist build
Before the bell, Kunal builds a tight plan from a wide scan. He tiers watchlists so he can hit A+ names fast and ignore noise once the bell rings.
- Run a gappers scan: pre-market gap ≥ 3% with pre-market volume ≥ 150k shares by 9:10 a.m.
- News check: confirm a clear story (headlines you can describe in one sentence).
- Technical pass: mark pre-market high/low, prior day high/low, and nearby daily levels.
- Tiering: 5 A-list names (tradeable immediately), 10 B-list (needs more confirmation), rest on a bench list.
- Build a one-line plan per A-list ticker: “If above PMH and holds VWAP on first pullback → long; risk = pullback low.”
A+ setups that repeatedly show up
He keeps a small menu of playbooks so execution gets faster and more consistent. Each setup has non-negotiable conditions and a default management plan.
- Opening Range Break (ORB): wait for a 1–5 minute range; enter the break only if RVOL ≥ 2x and tape is speeding up.
- Red-to-Green (R2G): stock gaps down early but reclaims prior close with volume; enter on reclaim + hold above VWAP.
- VWAP Reclaim/Reject: trend pause under/over VWAP; take the reclaim/reject with risk anchored on the last higher low/lower high.
- ABCD/Midday Flag: trend, rest, coil, and break; must align with daily trend and catalyst still active (no news fade).
- Backside Short (only after top set): lower high + VWAP loss + heavy supply on tape; cover partial into prior low.
Entry timing & order execution
Entries are timed to catch expansion, not chop. Kunal uses precise triggers and keeps orders simple to avoid hesitation.
- Enter on breaks that coincide with a speed-up in time-and-sales and a 1-minute volume burst ≥ prior 3 bars average.
- Avoid entries inside the first 30 seconds unless it’s a pre-defined ORB in a true in-play name.
- Use stop orders or hotkeys at pre-planned trigger levels; avoid chasing more than 0.30R beyond plan.
- If spread > 0.25% of price or prints are sporadic, skip the entry.
- First, add only if the trade moves ≥ +0.5R and structure tightens (higher low for longs, lower high for shorts).
Risk sizing that survives losing streaks
Account survival comes first. He caps damage per idea and per day, so one bad stretch can’t dig a deep hole.
- Risk per trade: 0.25%–0.5% of account; new traders stay at 0.25% until 20 consecutive rule-following sessions.
- Hard daily max loss: 2R–3R. Hit it → stop trading immediately.
- One ticker, two strikes rule: two losing trades on the same name → bench it for the day.
- No average-down unless it’s a planned add at predefined levels with risk unchanged or smaller.
- If slippage exceeds 0.3R on two trades in a row, cut size in half for the rest of the session.
Profit taking & exits you can automate
He books strength into obvious levels and lets a runner pay for the day. The exit plan is written before the entry.
- Scale 1: take 1/3 at +1R into the first target (pre-market high/low, ORB level, or daily pivot).
- Scale 2: take 1/3 at +2R if trend structure holds (higher lows for longs). Move stop to breakeven after Scale 1.
- Trail the final 1/3 using a 9–20 EMA cross on the 1–2 minute or a structure stop under the last swing.
- If a candle closes back through VWAP against your position, tighten to just under/over that candle.
- Flat by 3:55 p.m. ET unless the plan explicitly allows a carry with a hard catalyst and daily trend.
Intraday management & “do nothing” discipline
After entry, the job is to manage risk and avoid tinkering. Kunal treats inactivity as a skill.
- During the first 15 minutes post-entry, touch nothing unless your stop triggers or structure breaks.
- If the trend stalls for 10+ minutes with shrinking RVOL, take partial and raise the stop to the last higher low/lower high.
- No adding if the name loses “in-play” status (RVOL < 1.5x or news disproved).
- If three consecutive A-setups fail across different tickers, reduce size by 50% for the rest of the day.
- Step away for 5 minutes after any rule break; log it before resuming.
Scaling path from the simulator to real size
Kunal emphasizes gradual exposure so your psychology can keep up with your P&L swings. You earn size by the proving process.
- 10 trading days on the simulator: require ≥ 60% win rate on A-setups and positive expectancy before going live.
- Start live at 25% of target size; increase by 10% weekly only if daily drawdown stayed ≤ 2R and rule breaks ≤ 1.
- Cap concurrent positions to 1 until you’ve logged 20 green days following rules; then allow 2–3.
- If you close a week red or break rules twice, drop size one notch and re-qualify.
- Quarterly: raise max risk per trade by 0.05% only if expectancy and discipline metrics both improved.
Metrics & journaling that drive improvement
He treats trading like a business: measure, review, adjust. The point is to find which setups and times of day actually pay you.
- Journal every trade with: setup tag, catalyst type, time of day, entry trigger, stop, R multiple, emotions (1–5).
- Weekly review: top 3 profit sources by setup/time; cut the bottom setup for 2 weeks.
- Track slippage and borrow fees; remove names with chronic execution friction.
- Maintain a “hall of fame” playbook with annotated charts of best trades; revisit before each session.
- Record rule breaks and impose a self-fine (e.g., $25) or size cut the next day.
Tools, screens, and workflow
The platform is less important than a clean, repeatable workflow. Keep your screen layout tight and focused on decision drivers.
- Two charts per name: 1–2 minutes for execution, 5–15 minutes for context; daily on a side panel.
- Always show VWAP and 9/20 EMAs; add ATR and relative volume; hide indicators that don’t affect decisions.
- Level 2/time-and-sales visible on A-list names only; hide them for B-list to reduce noise.
- Hotkeys for: buy/sell at market, limit at price, break-even stop, and +/- 25% scale. Test them daily pre-market.
- Pre-written checklists: “Pre-Entry,” “Active Trade,” and “End-of-Day” are pinned next to your montage.
Psychology & expectations
Kunal’s edge is consistency under pressure. He normalizes small wins and small losses so he can stay around for the big trend days.
- Define success as “followed plan,” not “greenP&LL”; mark a trade green only if it followed rules end-to-end.
- Limit news/social media consumption to pre-market and post-market; never mid-trade.
- Use a 90-day streak tracker for process goals (e.g., max loss respected, journal completed).
- If you feel the need to “make back” losses, cut size to 10% for the next two trades.
- End every session by writing one sentence: “What would future-me wish I had done differently today?”
Size risk first: cap losses, protect capital before chasing momentum
Kunal Desai starts every trade by sizing risk, not dreaming about profit. He defines the dollar or R-loss he can stomach first, then lets position size flow from that hard limit. This flips the habit of picking shares first and praying the stop holds. By anchoring risk upfront, he keeps losses boring and survivable even when momentum gets wild.
In practice, Kunal caps each idea at a small fraction of equity and sets a daily max loss that ends the session without negotiation. If a name dings him twice, he benches it rather than “revenge trade” the third swing. On fast movers, he tightens size when spreads widen or slippage shows up, proving that volatility changes exposure, not the rules. The result is a playbook where capital protection funds’ longevity, and longevity, lets the best momentum days actually count.
Trade in-play names with fresh catalysts and heavy relative volume
Kunal Desai only wants stocks that have a reason to move today, not just pretty charts. He hunts for earnings, guidance changes, FDA headlines, upgrades, or sector sympathy that pull new participants into the tape. Those names must also show real gas: elevated relative volume that confirms fresh order flow, not yesterday’s leftovers. If the catalyst is fuzzy or RVOL fades early, he cuts it from the list without hesitation.
Before the bell, Kunal marks pre-market levels and expects the open to confirm with surging prints and clean holds above VWAP. He prefers tickers moving independently of the index, so one tweet or macro wiggle can’t shake him out. When flow stalls, he downshifts or steps aside, treating RVOL like a heartbeat monitor for momentum health. This keeps him focused on stocks that can extend, not just spike and die.
Define entries and exits; automate partials, trail winners with structure.e
Kunal Desai treats entries and exits like a preflight checklist—no guesswork once the bell rings. He defines exact triggers at key levels, waits for a volume surge or VWAP reclaim, and uses stop orders to remove hesitation. The stop lives where the trade idea is invalidated, not where it “hurts less,” and position size is set so that the stop can be honored. When a break is late or spreads are sloppy, he skips it rather than bend rules to fit the moment.
Once in, Kunal automates partials so the first scale hits at a predefined R or obvious level, locking progress without overthinking. He trails the remainder with structure—higher lows for longs or a short moving average cross—so winners breathe while risk tightens. If momentum pauses and relative volume dries up, he tightens stops or exits instead of hoping it revives. The result is a system where decisions are made before emotions arrive, letting mechanics carry the trade to its natural conclusion.
Diversify by setup and timeframe, not ticker count or hope.
Kunal Desai spreads risk across playbooks and time-of-day edges, not across random symbols. He’ll run an ORB, a VWAP reclaim, and an ABCD in different market phases rather than three near-identical breakouts at 9:35 a.m. This keeps the correlation of outcomes low, so one cold pattern doesn’t nuke the day. He also staggers holding duration—quick scalps at the open, structured trend trades mid-morning, and selective continuation plays after lunch—so expectancy isn’t tied to a single window.
Instead of juggling ten tickers, Kunal narrows to a few in-play names and diversifies the way he attacks them. If ORBs underperform this week, he shifts capital to R2G or VWAP reclaims while keeping total risk constant. He tags every trade by setup and timeframe, then throttles size toward what’s paying and away from what’s stalling. That’s diversification with intent: fewer tickers, more edges, and zero reliance on hope.
Mechanics over prediction: plan, execute, review, then scale size deliberately
Kunal Desai builds his edge on repeatable mechanics, not crystal-ball calls. He shows up with a prewritten plan, triggers ready, and a defined stop, so execution is mostly button clicks. When the market opens, he follows the checklist—confirm catalyst, check RVOL, validate structure—and ignores hot takes. If a setup isn’t aligned, he passes without regret because skipping is part of the system.
After the trade, Kunal logs setup, time of day, R multiple, and any rule breaks so the review loop stays honest. He scales in size only when the data show stable expectancy, not after a lucky win. If performance dips, he cuts size first and fixes process before chasing new indicators. The message is simple: mechanics produce consistency; prediction produces stories.
Kunal Desai’s core lesson is simple: trade momentum with a reason behind it and manage risk so tightly that survival is never in doubt. Across the interview, he keeps hammering the same thread—find stocks with genuine catalysts that can attract fresh order flow today, plan the trigger and stop before you click, and let clean structure—not opinions—decide if you stay or go. He treats watchlist building and pre-market prep like a small business operation: scan wide, tier the best ideas, mark levels, and write a one-line plan per ticker so execution is just following directions. When the bell rings, his playbooks (opening breaks, VWAP reclaims, red-to-green, trend flags) only fire if volume verifies the story; if that confirmation disappears, he steps aside and preserves cash for the next A+ shot.
Equally important is how Kunal Desai grows as a trader: simulator first, then small size, then gradual scale once expectancy is proven by data. He journals by setup and time of day, shifts capital toward what’s paying this week, and cuts patterns that aren’t delivering until they requalify. Diversification, for him, isn’t ten tickers at once—it’s multiple edges and holding windows so one cold pattern can’t sink the day. The big message for any trader reading this: build a rules-driven routine, defend every dollar with pre-set risk, demand real catalysts and volume, and let your process—not predictions—compound the account over months, not moments.
