Some Good Steals...

roneeth · #**2121** 10th November 2005, 06:11 PM

Quote:

Originally Posted by AMITBE

The rule of 4 or 5 or 7% works under most circumstances, Roneeth. While this is not quite an arbitrary rule, it can and should have variables which are:
A) The volatility of the scrip where less volatile lesser the percentage and higher the volatility higher the percentage.
B) The distance we are from entry. Further up in profit we go the better we understand the nature of the trend, and better the risk/reward factor. If the trend appears to have more left in it, we loosen the stop to allow more volatility without getting stopped out too soon. As the trend begins to tire we tighten the stop in case of a correction.

In the case of REI, it wasn't really too far out from your entry. Also it had shot up from 185 to 214 with intraday high at 219 all in three sessions. With this kind of a rush, an equally sharp retracement should be expected which did happen in three sessions. Seeing this you may have exited into the second day of the fall seeing how rapid the sell out was happening. 207-208 would have been it.
Yes it does sound simple with the benefit of hindsight, but this is what we must learn and be alert to, especially with a scrip breaking new high grounds.

With Bata we are breaking out of a range that extended for about two months. At 153 close tonight it's above several supports at 151, and the highest it's been is 159 with 164 intraday high. It's been far more resilient than REI in the recent down times. The volume doubled today from yesterday. So far so good. While it's very close to your entry yet, going by the recent show of strength, we may let it run around a little should the market begin to buck tomorrow. The trend appears firm from the consolidation of the past several weeks. To the up, we should get cautious approaching the earlier high to see if it reacts there and exit if there is strong supply there. Let's track it.
Take care.

Thanks for explaining...
Though not much profit but definitely i learnt a lesson out of it.
still understanding to exit a trade....

Regards

Roneeth

ashimindia · #**2122** 10th November 2005, 06:32 PM

Hello Amitbe,
Can u look at ADLABS especially in view of its reported plans to open more multiplexes incl IMAX screens.thanks in advance

chopra · #**2123** 10th November 2005, 06:47 PM

Quote:

Originally Posted by AMITBE

The rule of 4 or 5 or 7% works under most circumstances, Roneeth. While this is not quite an arbitrary rule, it can and should have variables which are:
A) The volatility of the scrip where less volatile lesser the percentage and higher the volatility higher the percentage.
B) The distance we are from entry. Further up in profit we go the better we understand the nature of the trend, and better the risk/reward factor. If the trend appears to have more left in it, we loosen the stop to allow more volatility without getting stopped out too soon. As the trend begins to tire we tighten the stop in case of a correction.

Thanks Amit for valuable comments.
I was looking into Gateway's volume for the day.
3,918,287 in NSE and it has got a 7% gain and the CMP281. So the numbers are high and they are rising
And how to go for this now. So as per SL 262.
Do I raise it?
If I look into charts it is looking like a upside trend to me.

And what do you think that this scrip has more steam to cross the 300 figure.
As what I am able to see that it got a good resistance at 280.
And it has to stay above 280 to touch 300.
Am I on the right track?

Looking forward for your valuable suggestion.
Please reply,

Regards,
Ashish

AMITBE · #**2124** 10th November 2005, 07:03 PM

Hi...will return late...going out now. Check tomorrow.
Bye.

vizzie · #**2125** 10th November 2005, 08:02 PM

Hi Amitda

How r u doin?
Amitda, ur views on a few counters.
Asian Hotels CMp 434 entered at 430
Gati Corporation CMP 275
Champagne Indage is hitting upper circuit for a couple of days now.
n Aegis Logistics.. Broke out from 190.. sitting nicely at 231 today.

cheers

vizzie

Quote:

Originally Posted by AMITBE

Hi...will return late...going out now. Check tomorrow.
Bye.

AMITBE · #**2126** 11th November 2005, 10:08 AM

On Gateway, the technical stop loss mark would be 260 which coincides with yesterday's low.
At 7% trailing from cmp it would be 270, 5% would be 275 and at 4%, 278.
Its in an extreme overbought area so be cautious. Often the momentum will push the price higher and higher but here we are not looking at technicals, so nothing to say any further.
Taking an entry on this for now is certainly not something I would suggest.
The targets projected by brokers etc are beyond my comprehension and understanding.

Saint · #**2127** 11th November 2005, 10:17 AM

Great going on BATA,Amit/Roneeth!

Saint

AMITBE · #**2128** 11th November 2005, 10:26 AM

Quote:

Originally Posted by roneeth

Thanks for explaining...
Though not much profit but definitely i learnt a lesson out of it.
still understanding to exit a trade....
Regards
Roneeth

Hi Roneeth, at the end of the day there is really no hard and fast rule for stop levels. Everything mentioned earlier would become arbitrary from one situation to another. One just has to be alert to price action together with velocity, volume etc., more importantly when the rally is still quite close to our entry. When in a fix, just going with the previous day's low as stop level is also good.

Bata is doing well. 165 is crucial to break past for further gains, and this was the target I had first called:

Quote:

Originally Posted by AMITBE

A fairly decent disciplined trade for a disciplined player would be Bata, with a strict s/l at 146. CMP 153 off...can a be taken at any decline for 165 sometime soon.
I'm jumping the gun here, I know.
Even so, I like it. Keep strict s/l as suggested and trail stop.
Caution is still the word...we are in some volatile zone on the index.

Hi Saint..yes, Bata has come true finally!

VICKY_SEEKINGINR · #**2129** 11th November 2005, 10:26 AM

Hi amit..

Great going in wipro.
i am having some stock at 385
where i can exit?

can wait for 420??

Thnx

AMITBE · #**2130** 11th November 2005, 10:42 AM

Quote:

Originally Posted by VICKY_SEEKINGINR

Hi amit..

Great going in wipro.
i am having some stock at 385
where i can exit?

can wait for 420??

Thnx

Hi Vicky...yes a nice move in Wipro which has been in a range for some time. If it can break past 404-406, look for 415 with stops then at 400-404. If it breaks past 415 it will be in a new area.
For now the stop should be at 395 or 388.
Cheers.

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