Sunday, September 19, 2010

Performance Of Trading Stock Futures : August 2010

August has been the most frustrating month as far as our stock futures trading is concerned. Its been a month which me and my subscribers at would like to forget in a hurry. There was nothing 'august' about this month of August 2010 as far as trading is concerned.

On 2nd Aug Nifty touched a low of 5351 whereas  on 30th Aug day low was 5390. If we compare the closing prices of Nifty on 2nd Aug and 30th Aug, we find them to be 5432 and 5415 respectively. From these figures it is evident that the indices went nowhere in terms of direction in the entire month of August 2010.

Our efficiency in my exclusive club of stock futures trading during the month of August was nothing to write home about. So far on an average we have been doing twenty number of stock futures trades in a month. But in this month of August we managed to enter into only four trades on the long side. Out of these four trades, two trades had to be rolled over to September series. And it is these two abominable trades which seriously pulled down our efficiency. There was huge cost to pay in terms of emotional cost and opportunity cost. If you have missed my detailed analysis of those two rogue trades, here are the links again:-

Now is the time to carry out performance check of two stock futures trades that were squared off in August 2010. As per established tradition in my exclusive club of stock futures trading at Stockezy, 100% success was again achieved in these two trades. Total profit generated from these two trades was Rs 8,600/- at an average of  Rs 4300/- per trade. Details of these trades are given below :-

Ambuja Cement August Futures(Long) :
Bought at 113.5 and covered at 115.3. Lot size = 2000. Investment = Rs 46,000/-.
Profit = 1.8x2000= Rs 3600/-. Return on Investment = 8%

Patni August Futures(Long) :
Bought at 450 and covered at 460. Lot size = 500. Investment = Rs 45,000/-.
Profit = 10x500= Rs 5000/-. Return on Investment = 11%

Now in September we have finally got our bearings and market has also started trending. In September so far we have successfully squared off eight stock futures trades. Two trades are already open, out of which we shall be exiting one of them in next trading session on Monday. We plan to pick up speed of trading in September and hence I call upon all my subscribers to be mentally prepared for the same. Got to catch up for the lost time and opportunity in August, you see!!