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

[Nifty Trader]

Open Positions:

1) JK Lakshmi Cement bought on 1st Nov @ 126, TSL below 159. TSL hit. Exited @ 158.2. Profit = 25.55%
2) Advanta bought on 10th Dec @ 873.8, TSL below 922. CMP - 974.2
3) Bajaj Corp bought on 2nd Jan @ 239.3, TSL below 229.7. CMP - 238.75
4) Wockhardt Ltd bought on 4th Jan @ 1609.4, SL below 1512. CMP - 1673.4

Note: Words in Bold denote a change from the last post (esp. SL).

 

[Nifty Trader]

Open Positions:

1) Advanta bought on 10th Dec @ 873.8, TSL below 922. CMP - 971.35
2) Bajaj Corp bought on 2nd Jan @ 239.3, SL below 229.7. CMP - 238.5
3) Wockhardt Ltd bought on 4th Jan @ 1609.4, SL below 1512. CMP - 1671.4
4) PVR Ltd bought on 8th Jan @ 290.55, SL below 273. CMP - 307.1
5) Shreenath (BSE) bought on 8th Jan @ 81.2, SL below 75.8. CMP - 81

Note: Words in Bold denote a change from the last post (esp. SL).

 

[rh6996]

Open Positions:

1) Advanta bought on 10th Dec @ 873.8, TSL below 922. CMP - 971.35
2) Bajaj Corp bought on 2nd Jan @ 239.3, SL below 229.7. CMP - 238.5
3) Wockhardt Ltd bought on 4th Jan @ 1609.4, SL below 1512. CMP - 1671.4
4) PVR Ltd bought on 8th Jan @ 290.55, SL below 273. CMP - 307.1
5) Shreenath (BSE) bought on 8th Jan @ 81.2, SL below 75.8. CMP - 81

Note: Words in Bold denote a change from the last post (esp. SL).

NT, Your entry in Shreenath seems to me a bit risky! You must have bought it based on the Trading System of yours. But looking at the fundamentals its more than very clear that it is a "manipulated" share. May you make good money in it , however as this came to my notice my putting my USD 0.02 here !
Its Re.1.00 face value share, with 14.09 % promoter stake. March 2012 ending shows a loss !
52 weeks High is 81.50 and Low is 8.26
Take care!

 

[Nifty Trader]

Open Positions:

1) Advanta bought on 10th Dec @ 873.8, TSL below 922. CMP - 974.45
2) Bajaj Corp bought on 2nd Jan @ 239.3, SL below 229.7. CMP - 242.6
3) Wockhardt Ltd bought on 4th Jan @ 1609.4, SL below 1512. CMP - 1693.75
4) PVR Ltd bought on 8th Jan @ 290.55, SL below 273. CMP - 296.5
5) Shreenath (BSE) bought on 8th Jan @ 81.2, SL below 75.8. Exited @ 81.2. Breakeven trade.

Note: Words in Bold denote a change from the last post (esp. SL).

Snippets:

Exited Shreenath as although the volumes looked good at first glance, on the intraday chart the volumes were from very few trades. Not very comfortable when the volumes are not evenly distributed through the day. Shows how mistakes can happen

 

[Nifty Trader]

NT, Your entry in Shreenath seems to me a bit risky! You must have bought it based on the Trading System of yours. But looking at the fundamentals its more than very clear that it is a "manipulated" share. May you make good money in it , however as this came to my notice my putting my USD 0.02 here !
Its Re.1.00 face value share, with 14.09 % promoter stake. March 2012 ending shows a loss !
52 weeks High is 81.50 and Low is 8.26
Take care!

Hi. Yes, it clearly looks like a "manipulated" share. Even then it would have been ok had there been good participation in the stock throughout the day. I saw that the daily volumes were good but didnt check the intraday volumes (which is a must when you know that the stock is probably being "operated"). That was my mistake. A slip up in due diligence. Thanks for pointing it out RH. I would have seen it today but your post made me take a closer look :thumb:

So the question, should we enter stocks which seem to be operator driven? The answer is, only if you know what you are doing and are prepared to exit at the first sign of trouble. I am speaking from personal experience as I have made money in the past in such stocks (PFL Infotech, Goenka Diamond, and a couple others I dont seem to recall). I am not suggesting these stocks were operated but merely that they looked as if they were.

Volume analysis is the key as we want a clear exit route.

 

[rkkarnani]

Hi. Yes, it clearly looks like a "manipulated" share. Even then it would have been ok had there been good participation in the stock throughout the day. I saw that the daily volumes were good but didnt check the intraday volumes (which is a must when you know that the stock is probably being "operated"). That was my mistake. A slip up in due diligence. Thanks for pointing it out RH. I would have seen it today but your post made me take a closer look :thumb:

So the question, should we enter stocks which seem to be operator driven? The answer is, only if you know what you are doing and are prepared to exit at the first sign of trouble. I am speaking from personal experience as I have made money in the past in such stocks (PFL Infotech, Goenka Diamond, and a couple others I dont seem to recall). I am not suggesting these stocks were operated but merely that they looked as if they were.

Volume analysis is the key as we want a clear exit route.

NT, If we know its an operator driven share, I would prefer to stay away. There are times when you simply cannot get an EXIT route from such shares. I have burnt my fingers. There will be continuous Lower circuit for days without end... and no way to exit. Just sharing my experience. Thanks for sharing how you looked at the way the volume which was generated intraday.

 

[augubhai]

So the question, should we enter stocks which seem to be operator driven? The answer is, only if you know what you are doing and are prepared to exit at the first sign of trouble. I am speaking from personal experience as I have made money in the past in such stocks (PFL Infotech, Goenka Diamond, and a couple others I dont seem to recall). I am not suggesting these stocks were operated but merely that they looked as if they were.

Many years I ago, I had played a "manipulated" stock - Prism Cements. I observed that it kept bouncing between 12-16, and the bid/ask spread was large. I earned a lot (by my standards) in about 10 days, just buying bid and selling ask - orders on both side. I used to place my bid/ask 1 tick better than the best. If someone placed a better bid/ask, I would go one better. It was a competition.

Not your style, but I thought of mentioning.... Sorry, if digressing...

 

[Nifty Trader]

Open Positions:

1) Advanta bought on 10th Dec @ 873.8, TSL below 944. CMP - 993.35
2) Bajaj Corp bought on 2nd Jan @ 239.3, SL below 229.7. CMP - 244.85
3) Wockhardt Ltd bought on 4th Jan @ 1609.4, SL below 1512. CMP - 1709.1
4) PVR Ltd bought on 8th Jan @ 290.55, SL below 273. CMP - 299.95

Note: Words in Bold denote a change from the last post (esp. SL).

 

[Nifty Trader]

NT, If we know its an operator driven share, I would prefer to stay away. There are times when you simply cannot get an EXIT route from such shares. I have burnt my fingers. There will be continuous Lower circuit for days without end... and no way to exit. Just sharing my experience. Thanks for sharing how you looked at the way the volume which was generated intraday.

Yes, true. Probably for the average guy, its best to stay away from such stocks. For academic purposes, I'll list some reasons / qualifying criteria which gives me confidence to even buy such stocks:

1) The stock should have good liquidity and your position should not constitute more than 1% of the daily turnover. Good liquidity means trades should keep happening regularly. Stocks where no trade takes place for 1 hour should be avoided.

2) The bid-ask spread should not be huge. i.e. the difference should not be huge and should be normal. This also can imply liquidity issues.

3) Buy such stocks only if there is sustained momentum. Moves should be ongoing for months not days or even weeks. This will ensure that when your SL gets hit, you will have ample liquidity to exit. Remember, even operators have to exit. They will exit when retail enters and retail entry is generally followed by blowout moves i.e. 15% up in day, 40% in 2 weeks etc. That should prepare you for an imminent exit.

There are several other clues that an experienced trader can pick up but which a novice will fall prey to. So best to enter stocks which one is comfortable with. No stock or move is the last one ever

 

[Nifty Trader]

Open Positions:

1) Advanta bought on 10th Dec @ 873.8, TSL below 944. CMP - 1017.5
2) Bajaj Corp bought on 2nd Jan @ 239.3, SL below 229.7. CMP - 255.15
3) Wockhardt Ltd bought on 4th Jan @ 1609.4, SL below 1512. CMP - 1677.7
4) PVR Ltd bought on 8th Jan @ 290.55, SL below 273. CMP - 287.25

Note: Words in Bold denote a change from the last post (esp. SL).

Snippets:

Good moves by Advanta and Bajaj Corp today in a relatively weak market.