In stock futures trading one has to be constantly on the look out for exact entry point which is safe as far as downside risk is concerned. And it is also important to choose a trade in the perceived direction of the general market. That means if the general markets are perceived to go up then, choose to enter a buy trade in your selected scrip, and not a sell trade.
One of the most dependable methods to arrive at the exact buy point is the use of Fibonacci golden ratios to calculate the inflexion point in Elliot Waves. Only thing to remember is that calculated buy price is almost always little higher than the low that the scrip actually makes in trade. That is understandable since when it comes to a scrip falling in price, you will find panic buttons being pressed. This drags the actual prices a little lower than the Fibonacci calculated prices. In other words you need to put a little correction to the calculated price, while arriving at your exact buy price.
This little correction to be applied to calculated price was overlooked while entering trade of Patni Computers August Futures. We arrived at our calculated price of 470. So on 29th July I recommended to my subscribers at http://www.stockezy.com/ to buy in the range of 470/473. But actually we should have given a buy in the range of 460/463, after applying due correction. On that day Patni made a low of 459.
Next day we exited trade at 480. In this fashion my subscribers managed to garner profit ranging from Rs 2700/- to Rs 3700/-. That means a return of 6% to 8% on an investment of Rs 47,000/- in two trading sessions. We lost the opportunity to make Rs 2500/- more from this position, simply because we didn't apply the correction to calculated buy price. Anyway, check out the link below for actual trading details as it happened during market hours. Do scroll right down to the end of comments to find Patni trades, since the same page was initially used to trade HCL Tech in a hurry.
http://www.stockezy.com/opinions/6846/buy-patni-computers-aug-futures/
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