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
27878


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.

4 comments:

  1. Sir. Your Stock trading service really impressed me. I am house wife looking for parttime income. Is it possible for me to make some decent money monthly .Trading with profitable trader is really gifted. question is will is this service continue for long time or short period. Will this method has edge to produce consistent results. Sir these are my doubts. Thank you. Lakshmi

    ReplyDelete
    Replies
    1. Lakshmi

      Trading is profitable provided you do it correctly. Our job is to get around 50% of the trades right and whenever we lose, lose less and whenever we win, win more. For example, lets say you follow a trade plan like, 0.5% of SL and 1% of target for 100 trades of Rs. 1000 each. 50 trades will give a loss of Rs. 250 and 50 winning trades will make you a profit of Rs. 500. So your net profit will be around Rs. 250. If you analyze the performance sheet above, you will notice this same trade plan barring few trades.

      You can trade with me as long as you want. In fact it will require you to invest at least 4 to 5 months into it. Few days or few weeks or few months are never enough in trading.

      Regarding edge, we are trading the basic reason which makes the prices to move, like breakout from consolidation or reversal. Also stocks tend to move most mostly in the morning session either because of technical reasons or because of news flow or other reasons. This holds true since the formal trading was started and it will remain like this for rest of the life as long as stock markets are in existence.

      Mail me and we can start this process from tomorrow onwards.

      URD

      Delete
  2. all these trade are made using decision point principle?

    ReplyDelete
    Replies
    1. Bhavesh

      There is nothing like decision point principle. It is all related to price action. You develop the skill of reading prices and once you develop it, you are able to trade anything and everything. All the details regarding the trading method is there on the post. Read it again.

      URD

      Delete