Hi Guys,

Today I am discussing one practical trade I am into.

Total Capital Outlay. Rs.2,00,000

5% of capital = Rs.10000.

Divided into 3 equal parts. Each part is of Rs.3333/-

**Syndicate Bank.**
Entered with first part of Rs.3333/-

**Calculation**
Price as on 31/10/2014 is Rs.126.10

Capital divided by price gives = 26 shares.

Reduce it by 3 shares for brokerage ie 26-3=23

Entered with 23 Qty on 31/10/2014.

Price did not come up and it crashed like a hell.

I am ready with my second entry money ie Rs.3333/-

We need to double up the Qty ie 46.

To discount brokerage issues, we consider it as Qty 49.

Now, new calculation

Rs.3333/49 gives the price at which i am going to buy ie Rs.68

So, release my second instalment and bought 46 Qty on 29/1/2016.

Now the average comes to Rs.96.60 for qty 69

Presently the share is quoting around Rs.75. (Today if i sell the share i will incur a loss of Rs.1500.)

So, I will release my last instalment of Rs.3333 to buy a qty of 138 at the price of Rs.23.30.

Now, syndicate has some choices to make.

1. Go down and fill 3rd instalment at 23.30 with qty 138 thus making total qty 207 at an average price of Rs.48.30.

2. If it goes further down and vanishes from market I lost 5% of my corpus.

3. If it goes up from here ie Rs.75 and hits initial entry.. i will make Rs.1800 on investment of Rs.6666.

4. If it goes up after releasing 3rd instalment and if it reaches 2nd entry level then i will make Rs.9200.

Only 3 choices.

1. Profit of Rs.2000

2. Profit of Rs.9200

3. Loss of Rs.10000 (Let us assume Syndicate Bank has vanished).

Have a look at the chart and you will get some idea.