Stocks To Keep A Close Eye On

[cnbondre]

Re: Stocks To Keep A Close Eye On - Chapter II

Hi,

You are right with respect to the initial Tgt and SL. The ratio is 1:1.2 because of the calculation of Tgt/SL involved in arriving at these figures for the first time. Let me show the mathematics which is very simple:

Let SL be the stoploss.

Then the target is calculated as 2 times the high minus SL. Therefore,

TGT = 2 X H - SL.

You are calculating P/L based on CMP. Therefore,

LOSS = CMP - SL

PROFIT = TGT - CMP

Therefore, the RR ratio is:

RR = (TGT - CMP) / (CMP - SL)

RR = (2 X H - SL - CMP) / (CMP - SL)

Now, 2 X H is higher than 2 X CMP Therefore,

RR > (2 X CMP - SL - CMP) / (CMP - SL)

RR > (CMP - SL) / (CMP - SL) > 1

Therefore, The RR is > 1 and the factor by which it exceeds 1 works out nearly 0.2 and therefore the RR is 1 : 1.2 approximately for all triggers. But as the targets are achieved and new targets and SL are set the RR increases well beyond 1.2. You can see from the Excel sheet, generally, when first SL is hit the loss is about 10%. In the same Excel Sheet you can also see that when second or higher targets are reached the profits are sometimes more than 100% also.

Now coming to profit on first target, it is not break even or loss. As you have calculated the Reward is about 1.2, the profit is therefore 10%. The overheads (Brokerage, STT etc.) for both legs together will not be more than 1%. Generally, the overheads are about 0.5% for a trade. For Some brokers like ICICI it is about 0.7 to 0.75% per trade. So it would be about 1.5% overall. So, you still make a profit of at lease 8% to 9%.

-Anant

HI,

ANANT,

YOU ARE A REAL GEM !!!!!!!!!!!!!!!!!!:thumb::thumb::thumb:

REGARDS,

CNBONDRE

 

[lovable_guy006]

Good Explanation Anant Sir !!!

 

[aid]

Failed to download the bhavcopy through getBhavcopy today.
Anybody facing similar problem ?

--- aid

 

[asnavale]

Failed to download the bhavcopy through getBhavcopy today.
Anybody facing similar problem ?

--- aid

Hi aid,

Today I have successfully downloaded Bhavcopy through GetBhavCopy for the dates 10th Feb to 15th Feb. Bhavcopies of both BSE and NSE are downloaded without facing any problem.

-Anant

 

[felik]

Re: Stocks To Keep A Close Eye On - Chapter II

Dear Loveable_Guy,
Can you please tell the name of the software you are using for charting/analysis.
It seems to be a good one...

IF YOU ARE LOOKING FOR A CHARTING SOFTWARE AND SCREENING SOFTWARE FOR FREE THEN I SUGGEST U TRY THIS ONE I AM POSTING THE LINK FOR ALL USERS OF TRADER JI SO THAT ALL BENEFIT FROM IT AND ITS FREE ALSO .
http://www.quantshare.com/

THIS IS THE ONLY CHARTING + SCREENING SOFTWARE AVAILABLE FREE ALL OTHERS COST Rs 20000 or more.
one can try it and if he feels that he can do sufficient tech analysis on his own then he can decide to buy the fancy software by wasting Rs 20000 to Rs 50000.

 

[asnavale]

Re: CONCURRENT INDIA ....strong fundamental

Hi Bunny and anantji....CONCURRENT INDIA INFRA breach all time high rs 16.00
today...now what we can do...would anyone enter to that scrip or not..some of our broker friend give target around 100 within one year ...and they also agree with turnaround story...

Company have around 1435 Crore order book from various project like material handling, EPC and water project...they may acquire KAZI AVIATION named company soon...so pl share ur views for investment....

I also put that scrip in my short term portfolio..and it jump 10% within 2 days.

Hi Tazzking,

As I had expected, CONCURINF has started hitting lower circuits. Have a close watch on it. May be it is time to exit. Take a decision carefully.

-Anant

 

[aid]

Hi aid,

Today I have successfully downloaded Bhavcopy through GetBhavCopy for the dates 10th Feb to 15th Feb. Bhavcopies of both BSE and NSE are downloaded without facing any problem.

-Anant

Hi Anantji ,
The problem was created by the Antivirus (NOD32) , which i've managed to rectify this time.
Thanx for answering me.

---aid

 

[tvrssvk]

Thanks a Lot Anantji for the explanation of Risk Reward Ratio......

 

[rnmathur4965]

Does RPL means Reliance Petroleum !!!

 

[bunny]

Does RPL means Reliance Petroleum !!!

Yes, RPL means Reliance Petroleum Limited. It is not traded anymore as it has been swapped for RELIANCE (Reliance Industries Limited) in ratio 16:1 (16 RPL for 1 RELIANCE).