- Wealth PMS (50L+)
Some updates on the transaction front. (Continuing from here)
Bartronics hit my trailing stop loss (last high: 285, today’s price reached 257). I sold at 255. From my purchase price of Rs. 201, this is a Rs. 54 profit in less than four weeks, a profit of 27%. My net gain on this Rs. 10,000 investment was Rs. 2,700 (booked).
United Spirits, another momentum player I had picked, hit near my 10% stop loss within a few days! I had bought a few at Rs. 1848 and the price reached too close to Rs. 1700 for my comfort (which was my stop loss, a little less than 10% but more easier to calculate). I sold at 1735, a loss of Rs. 110 per share. This is a net loss of Rs. 660 (I had 6 shares, close to 10K invested).
Exited parts of Ranbaxy and DRL. I know I had mentioned them as my longer term picks, but right now I am more into the momentum theory and want to pare down my longer term positions. With the dollar weak, I see these stocks underperforming in the near term, which is my current investing horizon.
Kamat Hotels is still doing well, at 175. I continue to hold.
I bought about 10K worth of Reliance Natural Resources (RNRL) at Rs. 78 just before close on Friday. It’s up about 22% today, at 93. Trailing stop loss moved up to 84.
Futures and Options: A Nifty play today – bought 50 Nifty at 4912 and sold at 4942, a profit of Rs. 1,500 for an investment of Rs. 23,000. Intraday, very fast move, would not advise anyone else to take it.
New F&O position: Bought one lot of RIL October future. Very interesting stock, makes acquisition news and has good stuff coming along: I expect great refining margins, EPS rise (and PE contraction) through the IPCL acquisition (which has lower PE than reliance) and some interesting Foreign exchange gains from its FCCB loans. Stop loss is 2250 (closer because this is a leveraged future).
All added up, I’ve booked net profits of Rs. 9,000 (net of losses) and there is about Rs. 3,000 of unbooked profits in teh positions, with a total investment of about Rs. 60,000. Counting just the booked amount, this is about 15% in a month.
At the end of September I will produce a full trading diary which details my trades (if any of you are interested of course).
Note: The quantities and amounts above have been modified proportionately.
Another note: This is an extremely risky strategy. I could have been purely lucky, and the same luck may not occur to you. To me this is money I can afford to lose, you may not be in the same position. Do not try to repeat what I’m doing unless you are fully aware of the fact that you may lose ALL your money. This is a post purely for educational purposes. I will maintain a more detailed trading log.