My EOD Stock trades......updated regularly Part 2

Discussion in 'Position Trading' started by Nifty Trader, Aug 13, 2012.

?

What kind of stock market returns p.a. would you be happy with on a consistent basis?

  1. 12-20% (Beating Fixed Deposits & Inflation)

    15 vote(s)
    12.7%
  2. 20-30%

    33 vote(s)
    28.0%
  3. 30-40%

    16 vote(s)
    13.6%
  4. 40-50%

    6 vote(s)
    5.1%
  5. 50%+

    39 vote(s)
    33.1%
  6. Whatever the market gives (Negative to 0 to 100%+)

    9 vote(s)
    7.6%
  1. life_haresh

    life_haresh New Member

    Joined:
    Aug 18, 2012
    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
  2. Nifty Trader

    Nifty Trader Well-Known Member

    Joined:
    Apr 9, 2008
    Messages:
    395
    Likes Received:
    861
    Trophy Points:
    93
    Location:
    Mumbai, India
    Thanks Reggie. Appreciate your kind words. The idea is to show people what is possible even with a limited time involvement (End Of Day) trading strategy :)
     
    sanjuasrani likes this.
  3. Nifty Trader

    Nifty Trader Well-Known Member

    Joined:
    Apr 9, 2008
    Messages:
    395
    Likes Received:
    861
    Trophy Points:
    93
    Location:
    Mumbai, India
    Have emailed you some info on the system. All the best.
     
  4. Reggie

    Reggie Well-Known Member

    Joined:
    Dec 10, 2008
    Messages:
    288
    Likes Received:
    393
    Trophy Points:
    63
    Just two question, if you could please clarify :

    What is the basis you decide the SL levels. Note that there are some trades that are in the money, but later get stopped out. So what determines the level of trailing SL?

    Also, what determines the target?


     
    sanjuasrani likes this.
  5. Nifty Trader

    Nifty Trader Well-Known Member

    Joined:
    Apr 9, 2008
    Messages:
    395
    Likes Received:
    861
    Trophy Points:
    93
    Location:
    Mumbai, India
    Open Positions:

    1) DCM Ltd bought on 24th July @ 143.95, TSL below 176.3. CMP - 198.8
    2) Granules India bought on 2nd Aug @ 144, TSL below 136.3. CMP - 146.3
    3) Bajaj Finance bought on 9th Aug @ 1073.5, SL below 1020. CMP - 1075.65
    4) BEML shorted on 9th Aug @ 309.5, TSL above 297.5. CMP - 278.55
    5) Mindtree bought on 14th Aug @ 642, SL below 613.9. CMP - 650.15
    6) Atul Ltd bought today (21st Aug) @ 292, SL below 267.5. CMP - 308.3

    Note: Words in Bold denote a change from the last post (esp. SL). Complete trading records are on Page 1.

    Looking to switch Mindtree with another IT stock if it shows some positive movement.
     
    sanjuasrani and Reggie like this.
  6. Nifty Trader

    Nifty Trader Well-Known Member

    Joined:
    Apr 9, 2008
    Messages:
    395
    Likes Received:
    861
    Trophy Points:
    93
    Location:
    Mumbai, India
    Hi Reggie. The entry as well as SL levels are decided entirely by the software. No discretion there which is good as it takes the weakest link (human emotions) out of the equation.

    This is a "keep your losses small and let your profits ride" strategy, hence there is no profit target. We will take as much as the stock wants to give us - whether 5% or 50%. In short, profits are determined by when our trailing SL is taken out.

    The problem with profit targets is that the target is generally based on what we feel is adequate reward. However, markets being markets, they dont really care what target you have in mind. Setting targets also means you yourself have limited any possibility of windfall gains. These windfall gains might not come very often but when they do, it makes a tremendous difference to your trading profits. Case in point is Ajanta Pharma where gains were more than 50% and now DCM is also closing in on that figure. So imho, have a fixed target for SL and let the market decide your profits. This is another way to keep human emotion (fear) out of the equation by exiting early even though the stock may have steam left.

    P.S. Pl note wherever I have said "you" I dont mean you as an individual. I mean each one of us individually as traders ;)
     
    augubhai, sanjuasrani, champ and 2 others like this.

  7. Nifty Trader

    Nifty Trader Well-Known Member

    Joined:
    Apr 9, 2008
    Messages:
    395
    Likes Received:
    861
    Trophy Points:
    93
    Location:
    Mumbai, India
    Open Positions:

    1) DCM Ltd bought on 24th July @ 143.95, TSL below 176.3. CMP - 203.75
    2) Granules India bought on 2nd Aug @ 144, TSL below 136.3. CMP - 152.05
    3) Bajaj Finance bought on 9th Aug @ 1073.5, SL below 1020. CMP - 1081.6
    4) BEML shorted on 9th Aug @ 309.5, TSL above 297.5. CMP - 279.55
    5) Mindtree bought on 14th Aug @ 642, TSL below 617. CMP - 672.9
    6) Atul Ltd bought today (21st Aug) @ 292, SL below 267.5. CMP - 309.4

    Note: Words in Bold denote a change from the last post (esp. SL). Complete trading records are on Page 1.

    Snippets:

    Good day today with Granules and Mindtree performing finally. Keeping an eye on DCM for any signs of reversal.
     
  8. Reggie

    Reggie Well-Known Member

    Joined:
    Dec 10, 2008
    Messages:
    288
    Likes Received:
    393
    Trophy Points:
    63
    Thank you NT for the comprehensive response. All questions answered. Your post will help to my understanding of using wider SL while taking positional trades.

    God bless!

     
    Nifty Trader likes this.
  9. rh6996

    rh6996 Well-Known Member

    Joined:
    Sep 22, 2007
    Messages:
    2,817
    Likes Received:
    1,574
    Trophy Points:
    113
    Location:
    Jaipur
    Can we have the fortune of your Trade Levels being posted at "SOD" instead of "EOD"!?

    :D

    SOD=Start of the Day!!
     
  10. Nifty Trader

    Nifty Trader Well-Known Member

    Joined:
    Apr 9, 2008
    Messages:
    395
    Likes Received:
    861
    Trophy Points:
    93
    Location:
    Mumbai, India
    Open Positions:

    1) DCM Ltd bought on 24th July @ 143.95, TSL below 176.3. CMP - 203.85
    2) Granules India bought on 2nd Aug @ 144, TSL below 136.3. CMP - 153.6
    3) Bajaj Finance bought on 9th Aug @ 1073.5, SL below 1020. CMP - 1080.95
    4) BEML shorted on 9th Aug @ 309.5, TSL above 297.5. CMP - 280.9
    5) Mindtree bought on 14th Aug @ 642, TSL below 617. CMP - 679.95
    6) Atul Ltd bought today (21st Aug) @ 292, SL below 267.5. CMP - 316.15

    Note: Words in Bold denote a change from the last post (esp. SL). Complete trading records are on Page 1.

    Snippets:

    If you notice today's low of Bajaj Finance was 986.4, however our position is still standing. Reason - only 1 trade happened (50 shares) @ 986.4 at 9:15:02 i.e. within 2 seconds of the market opening. This is called a freak trade as the next trade that happened was at 1061.45 at 9:16:08.

    Thats why its always best to place your trade 1-2 mins after the market opens esp. for stocks where the volume is not that high such as this one.

    Now in backtesting on EOD charts one will think that the SL has been hit while in reality the position is still standing. The same thing happens with prices on the upside as well sometimes.
     
Loading...

Share This Page