Thursday, 23 March 2017

Nifty Future 23032017

It opened gap up within yesterday's range.  It was very apparent that it was getting resisted at range high where there was a confluence of origin of significant move plus high volume node.  The attempted short refused to move and ended as a scratch.  Once the prices started getting accepted above range high, attempted a BPB long trade which yielded good.

Little bit on how I read the prices:

Micro trend in a decline mode, opened gap up.  Now this gap up should get sold by the aggressive sellers in the morning which did not happen as it refused to break the initial low at 10 am and gap remained unfilled. This was the first sign of weakness in the bears/sellers.  After that it kept on hitting the resistance zone without giving away too much.  Another sign of weakness of sellers and buyers gaining strength. Finally buyers won the battle and were able to break the resistance successfully allowing us to join the winning party and benefit from it.

Stock Trading 23032017

It is 10:30 am now and I am done with my trading the stocks.  Took 3 trades, there was a short trade in TVS Motors and others were long trade.

If traded with futures minimum quantity, profits would have been Rs. 3700. In TVS it just missed the target by 20 paisa and I had to exit some time after that.  Same happened with Divislab.  The target was 646 and it touched 645.

In Nifty or Bank Nifty, there was not any trade setup.  This is what typically happens while we trade the indices.  In the morning session very few days out of the month we will be able to trade them.  Whereas there are plenty of stocks moving big in the morning everyday.  This was one of the reasons selecting this first couple of hours of trading to trade stocks.  As a full time trader, we need to utilize every hour of trading.  We will make money only if we take trades.  Hope you got my point.

Wednesday, 22 March 2017

Bank Nifty 22032017

I traded in Bank Nifty today.  I found the setup better here than Nifty and traded it.  In fact, I posted the whole trade well in advance on Twitter.  I am just reproducing it here.

Chart I
Chart 2
Chart 3
Chart 4

Half of the quantity was booked at around BRN 20900 and remaining half at 20840 with 100 points of gain.  Waiting patiently for the good setup rewarded ultimately.

Stock Trading 22032017

Today's snap shot of trades taken.  All were shorts.  If  I had taken the same position in the Futures, my profit today would have been like,

Justdial    582.5*1200   = 3900
Titan        455.25*1500 = 5400
Hindalco  192.9*3500  =  2275

Total profit:  11575  in less than 2 hours in the morning.

I also missed one good trade in Axis Bank.  There was a good reversal setup.  Long entry was possible at 494.5 for the target of 502 which got achieved.  If position was taken in Axis Bank Future, it was the trade of the day generating the profit of 9000.  If I add that to 11575, today's profit alone was more than 20,000.

I had placed the order but accidentally got canceled and missed the good trade.

This post is not like blowing trumpet to promote or sell anything.  It is just to demonstrate if things are learned properly, practiced and gained experience, one fine day you can too trade like this on your own.  Unfortunately, very few people understand this and stick to it working hard without losing patience.

I learned the price action, applied to the Nifty first, practiced a lot, then started trading with the minimum quantity.  Once got comfortable with it and conquered it, not only increased the trade quantity but explored other instruments like commodities, stocks, E-mini etc and found whatever I was able to learn and grasp, working everywhere beautifully. 

Tuesday, 21 March 2017

Nifty Future 21032017

In the morning avoided trading in yesterday's narrow range.  Could not get a proper entry to short below PDL and missed the down move. After that spotted a reversal possibility on rejection of prices at HVN/spot BRN which achieved the minor target and yielded some.

Stock Trading 21032017

Above is a snapshot of chat message today while trading the stocks in morning and helping learn other trader how to trade.

As you can see, 2 out of 3 trades made profit.  The trade which lost, lost very minimum.  Total profit of trading like this in the morning couple of hours generated a profit of around Rs. 5000 on a small capital.
Date Scrip Avg. Buy Avg. Sell Qty P/L
21/03/17 India Cem 165.5 165.95 3021 1360
21/03/17 Oil 330.4 329 1513 -2119
21/03/17 Eng Ind 150.5 152.2 3322 5648
Total = 4889

There are certain advantages with stock trading like this.  Let me explain,

1) Most of the traders are not able to make consistent profits.  Also they start trading in F&O with the dreams of making big profits and majority of them end up with big losses. 

Trading in stocks allows us to risk very less.  We can trade for Rs. 1000 also in the learning process and not lose more than Rs. 20 per day.  Couple of cups of coffee or tea costs more than that.  Once we get comfortable and develop enough experience, we can always start ramping up and make this much of bigger profits on a small capital requirement. 

2) Risking less and trading with the discipline develops consistency.  The consistency in trading like this is very much essential.  You would appreciate a strict discipline of exiting at SL and booking out at targets in above trades.

3) Less time involvement.  Only 2 hours are required.  Rest of day we are free to do anything and enjoy our life.

Minimum capital requirement - minimum risk - minimum time requirement

In nutshell, I believe trading like this is the only answer to consistently profitable day trading.  

Sunday, 19 March 2017

Analyzing Stock Trading Performance

Here is the latest one month performance of stock trading which has been already shared with all of you with the proof,   I hope you would have gone through it and tried to analyze it.  Few of you might have even wondered about the process of screening the stocks for the trading.  Well, as I already mentioned in last post, stock selection is done on only two criteria, 1) breakout from a consolidation and 2) stocks ready for the reversal.  I select the stocks from the universe of around 150 active F&O stocks.  I go through the short term chart of each of these 150 stocks. It just requires me around 2 seconds to analyze the chart of each stock. So it hardly takes 2 seconds x 150 stocks = 300 seconds or 5 minutes for me.  So it only requires around 5 to 7 minutes after the market open for me to select my stocks for that day for the trading. With some practice and experience, you will also be able to do this.  There is no rocket science.

No.DateScripBuy RateSell RateQtyProfitClick for the proof
121/02/17Orient Bank125.45124.83986-2591Trade Book Proof
221/02/17NMDC142.9143.4534991924Trade Book Proof
321/02/17HPCL566.45688831413Trade Book Proof
421/02/17PFC135.75136.0536831105Trade Book Proof
522/02/17Union Bank148.1147.953376-506Trade Book Proof
622/02/17RCOM35.936.1139282786Trade Book Proof
723/02/17RCOM36.5537.1136807524Trade Book Proof
823/02/17Amtek Auto37.4537.2513351-2670Trade Book Proof
927/02/17OFSS37553732133-3059Trade Book Proof
1027/02/17Axis Bank513.4515.059741607Trade Book Proof
1127/02/17JSW Energy64.164.3578001950Trade Book Proof
1228/02/17Coal India325.1324.851538-385Trade Book Proof
1328/02/17KSCL472.6476.210583809Trade Book Proof
1428/02/17Bajaj Fin1115.61116.4448358Trade Book Proof
1501/03/17Divislab780.5773.7641-4359Trade Book Proof
1601/03/17Heromotcorp3194.33178157-2559Trade Book Proof
1701/03/17Mothersumi359.7361.113901946Trade Book Proof
1802/03/17Tatamtrdvr279.8281.817873574Trade Book Proof
1902/03/17VEDL273273.918321649Trade Book Proof
2003/03/17Justdial525.35520.8952-4332Trade Book Proof
2103/03/17Jisljal89.2490.656037620Trade Book Proof
2203/03/17Amtek Auto36.536.5136990Trade Book Proof
2306/03/17Eichermotors2347723530211113Trade Book Proof
2406/03/17Union Bank147.3146.73394-2036Trade Book Proof
2506/03/17HDIL69.869.857163358Trade Book Proof
2607/03/17BPCL645.2645.377577Trade Book Proof
2708/03/17Sunpharma688.2684.8727-2472Trade Book Proof
2808/03/17Idea106.7106.94686937Trade Book Proof
2909/03/17DishTV103104.7548548495Trade Book Proof
3009/03/17JindalSteel124.3124.5540231006Trade Book Proof
3114/03/17Ultratec3953.43946.5126-869Trade Book Proof
3214/03/17HDIL75.475.056631-2321Trade Book Proof
3316/03/17VEDL261.95262.919091814Trade Book Proof
3417/03/17Hexaware228.85227.252185-3496Trade Book Proof
3517/03/17BharatFin823.95827.956072428Trade Book Proof
3617/03/17M&M Fin302.1305.7516556041Trade Book Proof

Analyzing Stock Trading Performance:
There were total 36 trades making a profit of approximately Rs. 28000 in less than a month on capital of Rs. 1 lakh only. All are real trades.  23 trades made profit while remaining 13 trades made loss giving around 65% of accuracy.

Now if I want to improve the profitability, there are two ways to do that.  One is to improve accuracy  and another is to work on making more profit and losing less on the trades.  Rather than improving accuracy to 75% or 80%, I would like to work on making more profits from the winning trades and losing less on the loss making trades.

As colored coded blue, there were 4 winning trades which made good profit.  If I work on those trades and generate more profit out of it, I can improve my profitability.  For example, the last trade on M&M Fin, after my exit it went on to move in my favor and closed around 6% up.  So there was a scope of making more profit in that trade.  Same way if I work on loss making trades (colored coded brown) and make less loss, it will improve my overall profitability.  Rather than losing 4000 on a trade, bringing it down to around 2000 or 2500 will be the right thing to do.

So my next job is to work on these aspects of trading and improve my overall profitability.