The report card for day trading recommendations given for 09 Oct 2009 in my last post reads as follows:-
1. HDIL bought at end of day at 357 and closed at 357.2. Since it was for day trading, the position was to be squared up with no profit no loss. (Day low 356.1)
2. Nagar Const bought at 164 and squared up between 169 and 172 ie at 170.5. This trade gave a profit of Rs 13000(6.5x2000). (Day low 162.05)
3.Canbk bought at 343 and closed at 342.85 with a loss of Rs 120(0.15x800). (Day low 340)
4.ICSA bought at 205 and closed at 202, giving a loss of Rs 3600 (3x1200). (Day low 202)
Net profit = 13000-120-3600-1000(brokerage)= 8280, say Rs 8000/-
ICSA Oct Fut on both days did give return ranging from Rs 2500 to Rs 4000. But on both these days profit was not taken and finally ended up taking loss at the end of day. Futures' Day Trading lessons need to be drawn from this ICSA trade.
Lesson No 1
If you are day trading with multiple positions of different scrips, and if you have made handsome profit in one position, then protect that profit for the day by exiting other positions which are giving normal profit.This should be done even when these positions may not have reached the targets you have in your mind for them.