Wednesday 12 June 2013

Day Five Breakdown - Targets Achieved!

Well my targets for Monday's trade were achieved on Tuesday like I had mentioned in the , and what a way to achieve them! JSW Steel and BATAIndia broke past the targets and just kept ploughing through. Have a look at the charts for more clarity.

These are the stocks that I traded with on Monday and the results are astounding:

1. Sell JSW Steel, Entry: 727-730. Target: 710. Stop Loss: 737.


JSW Steel
My first analysis of JSW ended up triggering the Stop Loss but this one more than made up for the loss. JSW
Steel hit past the target and went another 25 points downwards. The market did most of the work on this though. Day low - 684!
Each lot of JSW futures contract fetched me Rs. 10000!


2. Buy BHEL, Entry: 187. Target: 195. Stop Loss: 185.

 SL triggered at 185. Nothing more to add.
Each lot of JSW futures contract cost me Rs. 2000!

3. Buy Canara Bank, Entry: 397-400. Target: 420. Stop Loss: 389.

CanBank
My trade in Canara Bank was as unfortunate as my trade in Reliance Infra on Day Three. CanBank hit a day low of 389 triggering my stop loss and then went on to hit a day high of 402.5. I should really learn to keep a small buffer when I place a stop loss otherwise things like this end up as a loss in my books. Maybe I should have just modified the SL. Anyway, Stop Loss triggered, although I expected it to happen.
Each lot of JSW futures contract cost me Rs. 4000!

4. Sell BATA, Entry: 885-890. Target: 860. Stop Loss: 899.

BATAINDIA
BATA's movement was a thing of beauty. I was fortunate enough to give in to greed and make a killing out of it this time. That is a very very rare event. I ended up not covering my profits at 860 and let the market do it's thing. BATAIndia ended up hitting a day low of 797! I was lucky to square off at 800; there aren't too many occasions when such a trade occurs.
Each lot of Bata futures contract fetched me Rs. 21250! That's a whopping amount!

The total profits on Day Five, considering I bought only one lot of each Futures contract, results to a sum of Rs. 25250! It's the most I've ever made in a single day after starting this blog. Even if I had stuck to a target of 860 on BATA I would've ended up with a profit of Rs. 10250. 

Hope to have many more great days like this.

Cheers!

Day Five Breakdown - Targets Achieved!

Well my targets for Monday's trade were achieved on Tuesday like I had mentioned in the , and what a way to achieve them! JSW Steel and BATAIndia broke past the targets and just kept ploughing through. Have a look at the charts for more clarity.

These are the stocks that I traded with on Monday and the results are astounding:

1. Sell JSW Steel, Entry: 727-730. Target: 710. Stop Loss: 737.


JSW Steel
My first analysis of JSW ended up triggering the Stop Loss but this one more than made up for the loss. JSW
Steel hit past the target and went another 25 points downwards. The market did most of the work on this though. Day low - 684!
Each lot of JSW futures contract fetched me Rs. 10000!


2. Buy BHEL, Entry: 187. Target: 195. Stop Loss: 185.

 SL triggered at 185. Nothing more to add.
Each lot of JSW futures contract cost me Rs. 2000!

3. Buy Canara Bank, Entry: 397-400. Target: 420. Stop Loss: 389.

CanBank
My trade in Canara Bank was as unfortunate as my trade in Reliance Infra on Day Three. CanBank hit a day low of 389 triggering my stop loss and then went on to hit a day high of 402.5. I should really learn to keep a small buffer when I place a stop loss otherwise things like this end up as a loss in my books. Maybe I should have just modified the SL. Anyway, Stop Loss triggered, although I expected it to happen.
Each lot of JSW futures contract cost me Rs. 4000!

4. Sell BATA, Entry: 885-890. Target: 860. Stop Loss: 899.

BATAINDIA
BATA's movement was a thing of beauty. I was fortunate enough to give in to greed and make a killing out of it this time. That is a very very rare event. I ended up not covering my profits at 860 and let the market do it's thing. BATAIndia ended up hitting a day low of 797! I was lucky to square off at 800; there aren't too many occasions when such a trade occurs.
Each lot of Bata futures contract fetched me Rs. 21250! That's a whopping amount!

The total profits on Day Five, considering I bought only one lot of each Futures contract, results to a sum of Rs. 25250! It's the most I've ever made in a single day after starting this blog. Even if I had stuck to a target of 860 on BATA I would've ended up with a profit of Rs. 10250. 

Hope to have many more great days like this.

Cheers!

Monday 10 June 2013

Day Five review - Monday, 10th June 2013

I enjoyed watching the markets unfold today. There was a tonne of news broadcast which made the market jump up and down. It seemed like people were confused about the news and they didn't know what to make of it.

That really didn't stop these stocks to move in the right direction though. Well, maybe it stopped one of them. Let's have a look:

1. Sell JSW Steel, Entry: 727-730. Target: 710. Stop Loss: 737.

Going in the right direction. As mentioned in my  , the target should be achieved during the next trading session.

2. Buy BHEL, Entry: 187. Target: 195. Stop Loss: 185.

I did see a further fall on BHEL but I just thought I'd bet on the reversal after hitting the bottom Bollinger band as well as the Stochastic over-sold line. Maybe that will happen after hitting 175. Not a big loss though since the SL got triggered at 185.

3. Buy Canara Bank, Entry: 397-400. Target: 420. Stop Loss: 389.

Holding CanBank for a revised target of 410 now. Saved from hitting the stop loss today by a whisker.

4. Sell BATA, Entry: 885-890. Target: 860. Stop Loss: 899.


On the brighter side, Bata almost hit the target of 860 today. Made a day low of 861.65. Holding for 860 tomorrow. Should be achieved first thing in the morning.

All in all, it was a fine day to trade. Only one loss incurred today and foreboding another tomorrow, but BataIndia and JSW Steel should more than make up for those losses. Let's see how things play out.

Cheers!

Sunday 9 June 2013

Day Five analysis

I've had a thought of getting my hands dirty only for two or three days of the week since that really suits the way I trade. I've actually been doing that since I started blogging so it's not much of an announcement. So from here on, I will only be providing trade calls for 2-3 days, but will be active on a daily basis on Twitter. Follow me there for other updates.

These stocks might yield the expected results in a couple of days. Most of them are retracing either from the over-bought or over-sold line, so you can expect some mixed movements during the day.

1. Sell JSW Steel, Entry: 727-730. Target: 710. Stop Loss: 737.

2. Buy BHEL, Entry: 187. Target: 195. Stop Loss: 185.

3. Buy Canara Bank, Entry: 397-400. Target: 420. Stop Loss: 389.

4. Sell BATA, Entry: 885-890. Target: 860. Stop Loss: 899.

Good Luck!

Thursday 6 June 2013

Are you technically sound?

I would like to address a small issue that I found to be rather disturbing. Recently, I was asked this question by a certain pedantic individual, "What is the formula to calculate MACD?" I replied by asking if it really mattered. This is the wonderful answer I got:
"Well if you don't know the formula then you're not a real trader!"
This statement sent my mind zooming back to my college days when my professor gave me a similar answer to my question, "Why do we need to know how to derive the formula? Isn't it better to just use it to form a conclusion?" Obviously I was punished for arguing with a lecturer and "behaving like a rebel." Go figure!
I really don't want to generalize but these are the kind of people who think that, by knowing the technicality behind a certain topic, they are now a master of it. You've met these people before. You know, the ones who think that by getting a better grade they are now the smartest person in the class. These are also the ones who stick to the trivial "textbook" way of doing things and not adapting to change. 

The way I see it, a person need only know how a particular process works. The technology or the tools that come along with it are just parts of the whole that will help you accomplish your tasks slightly faster and more efficiently. There really is no need for you to delve so deep into the tools that you end up forgetting the process. Just because you're proficient in a certain language and know the grammar flawlessly, doesn't mean that you can communicate effectively and get your work done. Communication is a skill that's totally different from learning a language. A skill which can be learnt of course. The same way, technical analysis is a skill that is essentially disparate from learning the formulas.

The only reason such questions are deemed critical is because that is the way kids are being taught in schools. The emphasis is mostly on following a set of protocols to arrive at the right answer. Students are not given the freedom to stray away from the prescribed method and think of some new way to solve the problem. They are forced to stick to the tried and tested method and and produce the same in an exam. This is also the method adopted by large corporations when they are hiring new candidates. They expect the candidate to give them the "correct" answer as mentioned in a "textbook". The fact that the employee may be able to learn new methods to fix a problem seems irrelevant. By doing so, the company on the whole, fails to adapt to change since the hired employees won't know how to and that marks the decline of it's long running success.

I may have gone off topic on a few occasions there but the point I'm trying to make is this: if one has the ability to learn, predict and adapt to change by concentrating on ways of finding answers using certain tools instead of concentrating only on knowing how the tool works, he/she will survive successfully in the long run.
That being said, I feel that this is what needs to be taught to students in schools and colleges instead of teaching what the industry requires of them. I know at least one person who would agree with me on this.

Wednesday 5 June 2013

Day Four review - Wednesday, 5th June 2013

So today I gave out a few calls that I thought was worth trading. There are a few stocks that I stick to most of the time, if you're good at it then why not strengthen it further right? But I did try my hand at a stock that I wasn't too comfortable trading in and it showed that I need to hone my skills further before I go exploring.

JSW Steel is a stock that I used to follow a few years ago but it just seems to be moving in a slightly different pattern lately. I guess older investors have paved way for newer ones whose mentality I am yet to grasp. Anyway lets look at the what happened to my predictions today:

1. Buy DLF, Entry: 192. Target: 197.5. Stop Loss: 190. 

DLF
I think I have the movement of DLF mapped out quite well. At the very least I can predict the direction in which it moves on a day to day basis. DLF touched a day high of 200.4 today. Target achieved. 

2. Buy ONGC, Entry: 316. Target 325. Stop Loss: 313.

ONGC
I was slightly off the entry point with ONGC today, it made a day low of 317 and went up to a day high of 325.25. Just like DLF, I'm very comfortable with trading in ONGC and it's safe to say that I can almost predict the exact movements of it almost everyday. Although it didn't hit the entry point, it definitely hit the target spot on. Target achieved.

3. Sell JSW Steel, Entry 720-725. Target 700. Stop Loss: 730. 

JSW Steel
As I mentioned earlier JSW Steel is a new stock that I'm entering into and I might need a little more time to figure out it's movements. Unfortunately the stop loss triggered today, resulting in a loss for the second time since I started this blog. Stop Loss triggered. 


I've been doing well with my predictions so far. I've given out 10 calls out of which 2 were disqualified and 2 have had their stop loss triggered. That brings my prediction rating to 6/8 or 3/4, which is still pretty good in my opinion. Let's hope things get even better in the future :)

Tuesday 4 June 2013

Day Four analysis

I did not see many trading opportunities yesterday and that is why I refrained from giving out any calls. I want to say that I see endless possibilities during the rest of the week but I'm unable to find them.

As of now, these will have to do:

1. Buy DLF, Entry: 192. Target: 197.5. Stop Loss: 190. 

2. Buy ONGC, Entry: 316. Target 325. Stop Loss: 313.

3. Sell JSW Steel, Entry 720-725. Target 700. Stop Loss: 730. 

Good luck trading and may the markets be with you :)