The 2% Ledger

[sridhga]

Got exit on CDSL today at 465.80. It did go further up, but I had hit my target at 10%.

Added TataCoffee, FRetail, Astec, Axis Bank and BDL between yesterday and today. Also entered BSoft, BhartiArtl and Cupid.

I am expecting exit on TataCoffee, TataElxsi and Astec tomorrow.
There is a lot of stock rotation going on in the markets. That is why the indices seem to be neither up nor down.
I am tracking about 508 scrips for this strategy.
Trade book is attached.

 

[sridhga]

In the last couple of days, exited Astec and entered Granules and SundarMFin. Added more shares to existing positions in TataCoffee, GodrejProp, TataPower, BSoft and Cupid.

SundarMFin:
This company specialises in different aspects of vehicle finance including Insurance Finance and Fuel Finance. Q1 results are better YoY, but not better if compared QoQ. This share is yet to scale into its pre-Covid highs. It has seen 5 days of continous downfall. It is prone to sudden movements on eitherside with several calm hours or days in between. Just started with one share as it is still falling and will add more down the way.

Granules:
This company has strong presence on API and is also into formulations. Q1 results were good both on YoY as well as QoQ. One negative news that was out on 26th July was that it had to recall some Diabetes drug from the US market. I will add more to my position if it falls further.

I could not exit Elxsi as mentioned in my last post due to the market volatility. I hope to do the same next week. I guess the exit opportunity on TataCoffee will take more time. Let us see.

Tradebook attached.

PS: I think I am spreading too thin on to many shares, I will try to control this.

 

[Raj232]

In the last couple of days, exited Astec and entered Granules and SundarMFin. Added more shares to existing positions in TataCoffee, GodrejProp, TataPower, BSoft and Cupid.

PS: I think I am spreading too thin on to many shares, I will try to control this.

Was going to mention that your list has approx 43 shares, more like the Nifty50 or Midcap50.
So, any analysis done using your method on the index itself, eg Nifty50 or Banknifty ? does it give similar results ?

 

[sridhga]

Was going to mention that your list has approx 43 shares, more like the Nifty50 or Midcap50.
So, any analysis done using your method on the index itself, eg Nifty50 or Banknifty ? does it give similar results ?

Nope. I did not compare with Nifty or Bank Nifty. Most popular large cap stocks like HUL, TCS, HDFC Bank, Bata, ColPal, Titan etc. tend to be great wealth builders in the long run. As an Investor, I would prefer them . In fact, I did benefit from such investments.

But the scope of this experiment is to ride smaller waves based on price action candle patterns. and turn in a small monthly trading income for a given investment. I keep an excel tracker with daily O-H-L-C-V for about 500 shares. I generally prefer profitable companies etc. as discussed in post 30 and 34 of this thread.

 

[sridhga]

My exiting Astec on the previous day proved to be right. The share crashed today. I also exited Tata Elxsi and Granules today. Timken may give me exit soon.
Entered Brigade 34 shares bought Rs. 174.33. It started moving up. If it falls further, I will add in tranche 2 and tranche 3 as per our rules. Q1 result was not good.

Added SundarMFin. I can go slow on this and so added just 1 share. It still keeps falling.

@Raj232 That was not 43 shares. It was 43 instances of purchases of different shares. Some of them are even already exited. For example today, I exited TataElxsi and I purchased it in 4 different instances and it took 4 lines on the trade ledger. But I normally exit all of those lots at once. For convenience, I had colored all TataElxsi purchases on yellow for better understanding.

Tradebook attached

 

[moneymanager1980]

My exiting Astec on the previous day proved to be right. The share crashed today. I also exited Tata Elxsi and Granules today. Timken may give me exit soon.
Entered Brigade 34 shares bought Rs. 174.33. It started moving up. If it falls further, I will add in tranche 2 and tranche 3 as per our rules. Q1 result was not good.

Added SundarMFin. I can go slow on this and so added just 1 share. It still keeps falling.

@Raj232 That was not 43 shares. It was 43 instances of purchases of different shares. Some of them are even already exited. For example today, I exited TataElxsi and I purchased it in 4 different instances and it took 4 lines on the trade ledger. But I normally exit all of those lots at once. For convenience, I had colored all TataElxsi purchases on yellow for better understanding.

Tradebook attached

I am not an expert trader.. but when gone through the attachments it looks u took too many trades and pain for a cumulative 1400 rupees profit..
just attached a bruceelee qoute .. but it good to see some detailed trade book maintenance ..

 

[sridhga]

SundarMFin:

The share started bouncing back. Will add to the position. Let us see how this closes today.

 

[sridhga]

SEBI's new rules are fantastic. Let us see why.

These rules force several multi cap funds which lazily invested in very few top shares to rethink and start doing their work more diligently.
Small and Mid-cap companies are now likely to get access to more capital. Recently many companies have come out with FPOs and QIPs. If funds are spread out even to smaller companies, deserving smaller companies get their place under the sun. Nifty anyways is controlled by limited number of business groups in the country. Their monopoly would now get broken. As small and mid caps improve they get upgraded to large caps. At the same time non-performing large caps do get down-graded due to flight of capital. So this creates a more democratic market for the companies while accessing capital. This rotation is fantastic for small traders like us as it creates regular trading opportunities. This is a win-win for the country and economy and also for retail traders while it forces Mutual Funds to put more effort in their work and few business groups which run large caps at the risk of weakened capital access if they do not perform.

MF investors are not paying those fat management fees for just holding those top 15 Nifty stocks in the Mutual Fund accounts.

Go, SEBI go ahead. We are with you on this. This large country needs to give more companies a helping hand and a level playing field.

 

[sridhga]

 

[timepass]

BN : Stoploss 20 points doesn't seem much. A single 5 minute bar can be 100 points 3-4 times a day.

If it is 20 points in the option, then I'd recommend fixing the SL in percentage. So, for a 100Rs. option, the SL would be 80 Rs, for 150Rs. option the SL would be 30 Rs. and so on. Trial and error would tell you about fixing the SL.

I use Tradesmartonline (VNS finance) broker. The cost per round trip (using the value plan - 0.007%) is about 1 point (25Rs) for an option upto 150Rs.

If I want to buy some option at 100, I would likely place 3 orders - 100, 96 and 92 and SL around 75Rs. Similarly, I would take profit at 110, 118 and then some.