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 http://www.stockezy.com/ 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:-

http://www.stockezy.com/opinions/7405/stock-futures-trading-made-un-ezy-reliance-industries/

http://www.stockezy.com/opinions/7419/stock-futures-trading-made-un-ezy-j-p-associates/

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!!

Performance Of Trading Stock Futures : July 2010

Till 14th July 2010, there were 14 stock futures trade which were concluded as per my recommendations at http://www.stockezy.com/ . The details of the trades were published on 15th July in a post titled "Trading Stock Futures : Performance Update Mid July 2010". Till then we had maintained 100% success rate, meaning that all these14 trades yielded profit. Total profit generated from these 14 trades was Rs 1,50,250/-Here is the link to the post giving out details of individual trades : http://archana-archdeb.blogspot.com/2010/07/trading-stock-futures-performance.html

Now is the time to carry out performance check of stock futures trade that were carried out in the second half of July 2010. There were nine long trades executed in Stock Futures during this period. As is the established tradition in my exclusive club of stock futures trading at Stockezy, 100% success was again achieved in all these nine trades. Total profit generated from these nine trades was Rs 52,100/- at an average of  Rs 5789/- per trade. Details of these trades are given below :-

Ultracemco July Futures(Long) :
Bought at 833 and covered at 848. Lot size = 250. Investment = Rs 41,000/-.
Profit = 15x250= Rs 3750/-. Return on Investment = 9.1%

Renuka Sugar July Futures(Long) :
Bought at 69.7 and covered at 71. Lot size = 2000. Investment = Rs 28000/-.
Profit = 1.3x2000= Rs 2600/-. Return on Investment = 9.2%

Bajaj Hind July Futures(Long) :
Bought at 117 and covered at 119. Lot size = 2000. Investment = Rs 46,000/-.
Profit = 2x2000= Rs 4000/-. Return on Investment = 8.7%

ACC July Futures(Long) :
Bought at 802 and covered at 820. Lot size = 250. Investment = Rs 40,000/-.
Profit = 18x250= Rs 4500/-. Return on Investment = 11.25%

ABB August Futures(Long) :
Bought at 775 and covered at 795. Lot size = 250. Investment = Rs 38,000/-.
Profit = 20x250= Rs 5000/-. Return on Investment = 13.15%

Ultracemco July Futures(Long) :
Bought at 826 and covered at 845. Lot size = 250. Investment = Rs 41,000/-.
Profit = 19x250= Rs 4750/-. Return on Investment = 11.5%

HCL Tech August Futures(Long) :
Bought at 378 and covered at 382. Lot size = 1000. Investment = Rs 75,000/-.
Profit = 4x1000= Rs 4000/-. Return on Investment = 5.3%

HCL Tech August Futures(Long) :
Bought at 375 and covered at 395. Lot size = 1000. Investment = Rs 75,000/-.
Profit = 20x1000= Rs 20,000/-. Return on Investment = 26.7%

Patni August Futures(Long) :
Bought at 473 and covered at 480. Lot size = 500. Investment = Rs 47,000/-.
Profit = 7x500= Rs 3500/-. Return on Investment = 7.5%

In all 23 stock futures trade were carried out in the entire month of July 2010, with 100% success in all trades. Total profit accrued in July 2010 from these 23 trades was Rs 2,02,350/-(Rupees two lakhs  two thousand three hundred and fifty only), at an average profit of Rs 8798/- per trade.

Stock Futures Trading Made Ezy - Patni Computers

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/