A plunge in Indian Stock market

[sspms2002]

today happened to be the best trading day of my trading life since i started last nov..
It even surpassed my last best RS 10K + in a day ,which happened a couple of weeks back..

RAJESH EXPORTS: I was still in this stock as i had taken it for delivery..i was watching it closely..yesterday i noticed that it was finding very good support ay 455 area and bounced many time from that..

Today it opened at 457 and market momentum was already bullish...it started going up and i pounced in it with added size..i bought 400 more and now had a size of 600...

It gave a brisk move till 495 area and then held there for 3-4 hrs..i had booked 300 shares there..

later during late afternoon...it started again up and i ran my position till 520..
I realized a profit of around 28000 in it..

JUST DIAL: I also had a delivery position it it..it opened at 1030..yesterday it had moved to 1007 and found good support there..
It started it journey up and i was in no mood to sell it before 1100..

it reached 1075 and halted there..i booked..and when it started up i again took 200 more shares..it touched 1090 but i wanted to keep the share...

Realized profit of around 10000 in it...

Peculiar thing id happening in JUST DIAL..some one is buying heavily in it..as the bid at 1075 was too too strong and didnot vanish even after a lot of selling..

KITEX: KITEX gave me a profit of around rs 1000 on 100 shares...though at one time it was showing profit of Rs 3000+

Stocks Traded: KITEX , JUST DIAL , RAJESH EXPORTS
P&L : Green 38561 after commissions:clapping:

Today was really a big confidence booster for me...

I am super bullish on RAJESH EXP and strong bullish on JUST DIAL as 1075 was holding..


Note: I had started with capital of rs 1.3 lakh a year back and it went up to 1.7 and now i had added 2.3 lakh more..so my trading capital is around 4 lakh now..

 

[sspms2002]

Today was a follow up of friday...I was expecting good moves in Rajesh Export based on friday and it so happened today..

RAJESH EXPORTS: I bought just at the open 600 shares ie at 530 and rode it till 555....it then started consolidating at 555 to 565 area...


as it broke 565 i bought another 400 but this time it moved till 572 and started to drift back....i had to exit at 560...
realized a profit of rs 15000


KITEX: i had 100 shares in it and it moved till 810..i booked at 805 and realized rs 3000..


JUST DIAL: this stock dragged back my p&L...i had 150 shares at 1085 and it moved till 1110...but later came back till 1100..1095 Area..i added 100 more to it..


but it had lost much of its strength..mainly i guess due to market moving to negative at that point...and was unable to recover much...

i had to exit with a small loss...


Stocks Traded: KITEX, RAJESH EXP , JUST DIAL
P&L : green 16581 after commissions

at one point i was seeing a total profit of rs 25000 , but closed at 16581..i guess that is what trading is...

 

[sspms2002]

Yesterday and today were just damage control...

Yesterday was a tough day as stocks had given good moves on last few days and there would be profit booking and no directional bias...

I was also stuck in the same traffic and got hit from both front and back...
what ever position i took , it turned red after showing green..and as the mentality is to book Red , but not Green...losses accumulated..


Today: Today a few stocks gave good move...one was motherson sumi...where i was long.. and gave me good profit..

Another was MAX India.

Stocks Traded: MAX India, KITEX , MOTHERSON SUMI, RAJESH EXP
P&L Yesterday : RED 13000 after commisions
P&L Today : Green 12500 after commissions

After market moves continuously good for a couple of days , be cautious on following days..

I am super bullish on MOTHERSON SUMI of today..also tomorrow is its result..

 

[mindgames]

Good to read your trades - I have been through (also going through) pretty much everything you have been writing about. Just flipped through the initial and last few pages of this thread - you seem to have vastly improved as a trader! Are you into chart reading? what are the basis for your trades - if you dont mind sharing them...

 

[sspms2002]

Hey Mindgames...

yes we all go through the same phase..its more or less same kind of learning cycle at the start..where we try putting use of various technical indicators to use and then weed each one out slowly...

as of now i am not using any indicators..just price on the chart..but yes i do use moving average on chart as that many times acts as support/resistance..and i also have stochastic on ..just for a confirmation ...but used rarely..just used in contemplating when in loss...

But it boils down to one thing after nearly a year's experience...even if we take random entries with out looking at anything and just cut losses at the nip and let our profits run a little...we can be profitable...


anyways..i have still not improved much...as i think that i am only taking LONG positions of now and this bull market is supporting the Longs of now...

I guess we all need to have a phase of bear run to perfect our or mine mindset a bit to be taking advantage of SHORT SELLING..


Also i started with NIFTY 50 stocks, which were kind of stable for a daytrader...now i look more into midcap high beta stocks and news based stocks...

 

[sspms2002]

I am now 1 year old in Equity Trading and analysis. The journey so far has been really interesting, adventurous and was filled with emotions...mostly on a good side...


I would write to capture my thoughts being a new bee and now a semi proffessional...

And i know may would have treaded this path already...

I had started with 1 lakh capital...got beginner's luck and made a few good trades...

Then the cycle of losses started..where i would make money on 4 days and lose it all and some more on the other day....

In Hindsight i see that that was one of the big mistakes..not cutting losses at right time...and getting devoid of other good opportunities which could make up the lost money easily...(because of locked money)

Taking intraday trades to delivery was also one bad aspect of my trading...

I ascertain that to my lack on knowledge of overall picture of the particular stock and the market levels...Now i could think more rationally on such situations..

But after around 6 months , i was able to break shackles and started making profit above Rs 1000 on days.....

I still remember, that on a particular day i had thought i would try to make 2k+ , and luckily i made that on that day...the happyness derived on that day was immense...it was like i was the king...

On such days thereafter...i was not able to concentrate better on my professional work...

Some one had rightly pointed out in a separate thread that if you start making money , eventually your attitude would change towards your menial office work and eventually your Boss would kick you out...no need to explicitly Quit the regular job...

That was just very apt and i realize it everyday now....


I made my first 5k+ a few days later and now i was sitting break even...
I was exuberant with confidence..and i added 3 lakh more to my trading account...

Total trading capital became 4 lakh+...


Then Phase 2 started of my trading....

 

[sspms2002]

Phase 2:

with the confidence that i could make money any day and with the big trading account , i started taking position aggressively...it was a good Bull market and i was mostly LONG...and it happened that i made a few good intraday profits...

I could remember that i reached my first 10k+ intraday profit...and then on one day i made a killing in Rajesh Exports...made a profit of around 40000 on 1000 share size on that day....(LONG position)


Then came my nemesis...Market has its own way to humble trader..

this trade is etched on my mind...

MOtherson Sumi trade: It was moving very swiftly on 52 week high..and i had made a trade from 385 to 390..and it closed on 391 with very high volume...the next day was its results...(i had mentioned it in my last thread too that it looked super bullish)

Next day at open i took 1000 at 392 and i guess it went 1 or 2 rs up and then started coming down...i though its a small pull back , let me wait..it came till 380 and it was a previous day support at that level..i added 1000 more..(leverage it)

It did not stopped going down...and i just kept watching it and eventually got out around 360..took a total loss of rs 45k+ on that day...

I got out at 360...if i would have taken it for delivery , i would have been in loss of more than 2.5 lakhs as now it is at 240 odd price..

The destruction didnot stopped there after a few days , i was struck in similar situation in Chennai petro and made a loss of rs 40K in a day...

as i see now , it was majorly due to me taking leverage and bad money management...Not cutting loss..

God had saved the worst for me..the world markets...CHINA, curency devaulation.. VW effect and things lined up and crashed the indian Stock markets...

I had kept a few stocks in delivery and they went down too..Eventaully i was down around Rs 2 lakh...


I went to a point where if i would have got some more loss...i was thinking that i would not be able to make it back...

Then PHASE 3 started...its called stalking and hunting....

 

[sspms2002]

Phase 3:

last 2 months:

I now became more cautious and more determined to make money and thus was weighing the trades more before taking position...

started getting into good stocks and at good prices...and that actually helped in managing trades better...



But some bad things still happening..i was not able to book even good profits...just because i wanted to make all the money back in a few go...

Thus i may had been 10k+ in morning but i would not book and eventually by day end it would evaporate and may turn negative too...

But to be very frank i came to know of a pattern of market because of the above....and that helps to enter/exit...

Previously 10K+ was a big figure for me...but now i had seen.booked many a 10k+ profits...

My strategy i would say is a combination of Intraday and positional trades...
Support and resistance are the driving factors....also called demand and supply...
I now also give market its due....I see that structures in day trading are very important....afternoon mostly drags the stock ..and then last 1 to 1.5 hrs would make a good move...



My Biggest WEAKNESS: the Exits...i have forgone a lot of profits because i had not exited when there was a good profit and then it evaporated...

Still working on the same...


On a side Note: I have recovered my loss of 2 lakh in last 2 months....and now with a outstanding loss of 30K.....

I would not be trading till Dec...

 

[amitrandive]

Thanks for taking time out and sharing your experiences.:clapping:

Will be helpful to many traders.

 

[amitrandive]

Daily Chart of MothersonSumi

Weekly Trendlines/Support/Resistance=Blue Colour
Daily Trendlines/Support/Resistance=Yellow Colour

Weakness dragging MotherSumi down.
Today this along with other stocks shot up after reaching a weekly support level.
Closing @ +6% today.

FYI

Motherson Stock analysed.