New Intermed Uptrend!!

[Anupama Singh]

Hi Avinash,

Share sizing is an art form .....Understanding it gives you great power and great profits.Also the stop loss when triggerred does not affect you in the least.One just moves on to get another stock and make profits there.

Let us for example use ISPAT INDS.I caught this move from November last year so it's easy to quote this as an example.

STEP 1:First,I should know the capital that I have.Let us presume it is 10 lakhs that I am playing with.How much am I willing to risk per trade?Anywhere bet 0.5%-2%.Let us say that I am willing to risk only 1% per trade.Therefore what is my risk per trade?Ans:1/100 times 10L=Rs10,000/-

STEP 2:Next we go to our charts.Entered on November 3rd at 13 with a stop loss of 11.So we got our ENTRY and STOP LOSS.

STEP 3:Now is this trade worth it?Therefore we calculate the reward to risk.The ratio should be greater than 2:1.Our target is 20.That gives us a 3.5:1 reward to risk.

So this trade is worth taking,We have a great entry point,a stop loss and a target.The reward to risk is worth it.But how many shares?

STEP 4:A s we calculated just now,for a capital of 10lakhs,we are risking only Rs10,000 for this trade.Meaning if the stop loss is hit,we lose Rs10,000.So how many shares do we buy?Ans:10,000 divided by the dist from entry to stop loss=10,000 divided by(13-11)=5000.

So we buy 5000 share of ISPAT at 13 with a stop loss of 11 and a provisional target of 20,with a reward to risk of 3.5:1.

Once a perfect entry,stop loss and share size is looked into,the trade is now on auto-gear.Then we trail stop it upwards till target or till taken out.

Hope I have helped answer your doubt.

Happy Trading!!
Saint

Hi Saint,
This is my first post.I just wanted to thank you for this excellent analysis.Please continue in teaching us.I hope u don't mind sometimes dumb questions.

Thank you!

 

[supratik]

Well written Saint

 

[phoenix]

Very nice,Saint!!!!!

 

[mdjamal99]

very great saint. keep it up. this is the spirit.

 

[jaideep]

Big-hearted post Saint. Unselfish stuff. Fits the handle I'd say.

 

[roneeth]

Hello Saint!

Very Very informative.....Thanks for sharing .

Regards

Roneeth

 

[avinash]

Hi Avinash,

Share sizing is an art form .....Understanding it gives you great power and great profits.Also the stop loss when triggerred does not affect you in the least.One just moves on to get another stock and make profits there.

Let us for example use ISPAT INDS.I caught this move from November last year so it's easy to quote this as an example.

STEP 1:First,I should know the capital that I have.Let us presume it is 10 lakhs that I am playing with.How much am I willing to risk per trade?Anywhere bet 0.5%-2%.Let us say that I am willing to risk only 1% per trade.Therefore what is my risk per trade?Ans:1/100 times 10L=Rs10,000/-

STEP 2:Next we go to our charts.Entered on November 3rd at 13 with a stop loss of 11.So we got our ENTRY and STOP LOSS.

STEP 3:Now is this trade worth it?Therefore we calculate the reward to risk.The ratio should be greater than 2:1.Our target is 20.That gives us a 3.5:1 reward to risk.

So this trade is worth taking,We have a great entry point,a stop loss and a target.The reward to risk is worth it.But how many shares?

STEP 4:A s we calculated just now,for a capital of 10lakhs,we are risking only Rs10,000 for this trade.Meaning if the stop loss is hit,we lose Rs10,000.So how many shares do we buy?Ans:10,000 divided by the dist from entry to stop loss=10,000 divided by(13-11)=5000.

So we buy 5000 share of ISPAT at 13 with a stop loss of 11 and a provisional target of 20,with a reward to risk of 3.5:1.

Once a perfect entry,stop loss and share size is looked into,the trade is now on auto-gear.Then we trail stop it upwards till target or till taken out.

Hope I have helped answer your doubt.

Happy Trading!!
Saint

Hi Saint,
I am extremely grateful for that reply.Although your plays have been one big profit after another,I have been at a loss as to what to do about share size.Thanks a lot for sharing this information.I am going to go thru it again and start implementing it.Once again,thank you so much.

I think it's very unselfish of you to help us newbies with all this info!

Thanks yet again
Avinash

 

[Saint]

Thx Amit,nn00023,Phoenix,Supratik,Jaideep,Anupama,ragh_ash,Roneet and Avinash for all your kind words!

Saint

 

[dheerajmehta]

Hi saint and amit,

currently i'm holding :

Alok [email protected]
MphasisBFL@268
Ashok [email protected]
Kopran@ 75.80
Eastern Silk@ 185.30

well today it took quite a bit of beating!!!.....with the exception of eastern silk which is doing well...
i will be highly obliged if u have recommendations on any of these....since most of my "risk capital" is locked up in these stocks....

PS: excellent post on share sizing saint!!!!

regards,

Dheeraj Mehta

 

[Saint]

PORTFOLIO UPDATE

TRADES THAT WE ARE OUT OF
BONG REF--Stopped out. -8.8%
ASHOK LEYLAND --at target +24.6%
HMT --Exceeded target. +102%
WELSPUN GUJ --Stopped. +17%
ESCORTS --at target +15%
DIVIS LABS --stopped +12%
TISCO --Stopped +8%
ANDHRA BANK --stopped +4%
NOIDA TOLL BRIDGE --Stopped 0%
UTI BANK --Stopped +7%
NTPC --out at 8.2%
AMTEK AUTO --Stopped today +12.5%
SESA GOA --stopped today +21%
IVRCL --exceeded target +61%

TRADES THAT WE ARE CURRENTLY IN
ABB --Raise SL to 1500
INDRAPR GAS --Raise SL to 105.5
JINDAL STEEL --Raise SL to 1105
PRISM CEM --Raise SL to 20.4
AVENTIS PHARM --Raise SL to 1415.
FLEXTRONICS SOFTWARE --Raise SL to breakeven
PETRONET LNG --Keep SL at breakeven
TATA TEL --Keep SL at 28.5
ANDHRASUGARS -- Raise SL to 145.
JAIPRAKASH ASSOC ---Raise SL to 249,partial profits taken at 271
MAHINDRA GESCO --Raise SL to 204,partial profits taken at 222
UNION BANK --Raise SL to 124
RUCHI SOYA INDS --Raise SL to 270
BEML --Raise SL at 740.
B O RAJ --Raise SL to 53.5.
GAMMON --Raise SL to 317.
GUJ NRE COKE --Raise SL to 135.2
POLYPLEX --Raise SL to 200
ISPAT INDS --Raise SL to 20.5
SRF --Keep SL at 257
TITAN --Keep SL at 478
GARDEN SILK --Raise stop loss to 71,partial profits taken.
BOMBAY DYEING --Raise SL to 408
MID-DAY --Raise SL to 80.
MSK PROJECTS --Keep SL at 73.45
KESORAM --Raise SL to 130
MANGALAM CEMENTS --Raise SL to74
IND SWIFT LABS --Raise SL to 194.5
INFOTECH --keep SL at 272
D-LINK INDIA --keep SL at 122
TV TODAY --Keep SL at 102.2
SHANTI GEARS --Raise SL to 56.2
ORIENT PAPER --Raise SL to 185
TIL --keep SL at 140
GOODLASS NEROLAC --Raise SL to 600
KEC --Raise SL to 230
ESSAR OIL --Raise SL to 43.1
IND HOTELS --Keep SL at 690
FEDERAL BANK --Raise SL to 179
MIRZA TANNERS --Keep SL at 177

All the best!
Happy Trading!
Saint