A good day for me. Since yesterday i got white washed with Sintex futures, today i made a conscious decision to stick with basics and develop some trading technique which i can rely upon. So i took the NSE gainers technique and mixed it with Supertrend combo rule.
First i observed Nifty, it was up with +26 points. Hence i went for Nifty 50 gainers.
I took DRREDDY, HINDALCO and TATASTEEL and all of these are in green. As soon as i took them they went into losses. So i wondered why this is happening. So i looked at NSE website and found that nifty is going down. Hence these stocks are also imitating its trend.
So I immediately squared off with some losses. I exited DRREDDY at 2568, which i bought it at 2574. A 600 Rs loss even though all the supertrend indicators are pointing green in 5 min chart. And the unthinkable happens. DRREDDY zooomed to 2666 today which means i could have gained (2666-2574)*100 = 9200. But i booked a loss of 600 because of developing cold feet. Hence the lesson to learn here is dont expect immediate profits. It might go against your expectations for sometime, but always stick to your strategy.
Another one HINDALCO. It was also going down, hence again i tried to squareoff with small loss. Finally i could square off with a loss of Rs 150. After squaring off, it went up another 5 Rs but ultimately went below my sell level. Lesson to learn is never ditch your strategy.
Next is TATASTEEL, booked a loss of Rs 134, but the good thing is it went down another 10 Rs below my sell level.
What i observed here is that before taking positions, just observe its RSI value. If it didnt touch either over bought or over sold levels, then you can take positions in that stock.
Next i went for Nifty losers. I selected TCS and GAIL.
I booked a small profit of 65 in GAIL as the stock was no where going.
Next TCS was going super strong. It was red all the way, but i already booked Rs 700 loss, so first i wanted to be in green zone today. So i booked TCS with a profit of 2000 + and over all my profits became 1000+. Again i watched TCS after 30 min, it still is trending strongly in downward direction. So i again shorted it and booked some profits. Totally i booked a profit of Rs 3690. I want to mention here that TCS was red the whole day but i exited multiple times, because of being conservative. Had i remained for the entire session, i could have gained (2571.9-2520)*100 = Rs 5100. But i had to live with Rs 3690.
Overall, a good start i have to say. I will stick with the same strategy tomorrow and probably for quite some time and get some experience. Also i will try to stick to my strategy tomorrow and see the result. Also i wil trade Nifty next 50 and F&O securities so as to diversify the risk.
Day 5: Rs 2778.25