Following are some of our trades in the last few months.
| Stock | Buy | Sell | Profit |
| Reliance Industries | 925 | 1057 | 14.27% |
| Reliance Industries | 1047 | 1093 | 4.39% |
| Reliance Infrastructure | 965 | 1090 | 12.95% |
| Reliance Infrastructure | 1030 | 1130 | 9.71% |
| Reliance Capital | 690 | 765 | 10.87% |
| Reliance Power | 153 | 175 | 14.38% |
| DLF | 345 | 383 | 11.01% |
| DLF | 310 | 335 | 8.06% |
| DLF | 270 | 291 | 7.78% |
| Ranbaxy | 535 | 600 | 12.15% |
| IFCI | 54 | 60 | 11.11% |
| IFCI | 58 | 63 | 8.62% |
| IFCI | 60 | 75 | 25.00% |
| IndiaBulls Real Estate | 172 | 195 | 13.37% |
| IndiaBulls Real Estate | 179 | 197 | 10.06% |
| Tata Steel | 510 | 490 | -3.92% |
| Tata Steel | 525 | 560 | 6.67% |
| Visa Steel | 33 | 37 | 12.12% |
| Varun Industries | 120 | 145 | 20.83% |
| Varun Industries | 170 | 197 | 15.88% |
| Varun Industries | 191 | 227 | 18.85% |
| IDBI Bank | 127 | 147 | 15.75% |
| IDBI Bank | 137 | 157 | 14.60% |
| BHEL | 2500 | 2650 | 6.00% |
| ONGC | 1235 | 1350 | 9.31% |
| Cairn India | 343 | 330 | -3.79% |
| Indian Hotels | 103 | 99 | -3.88% |
| Hindalco | 150 | 161 | 7.33% |
| GujaratNRECoke | 81 | 92 | 13.58% |
| GujaratNRECoke DVR | 39.5 | 43 | 8.86% |
| Tata Motors DVR | 735 | 780 | 6.12% |
| Sesa Goa | 320 | 360 | 12.50% |
| Sesa Goa | 350 | 335 | -4.29% |
| Devlpmt Credit Bank | 50 | 63 | 26.00% |
| Areva T&D | 310 | 295 | -4.84% |
| Suzlon Enegy | 57 | 54 | -5.26% |
| Indowind Energy | 46 | 52 | 13.04% |
| Indowind Energy | 42 | 46 | 9.52% |
| Panacea Biotec | 210 | 235 | 11.90% |
| Panacea Biotec | 195 | 221 | 13.33% |
| RPG Life Sciences | 91 | 115 | 26.37% |
| JM Financial | 34 | 37 | 8.82% |
| JM Financial | 40 | 46 | 15.00% |
Please note the following points regarding the above table:
- We will do multiple trades in stocks that are giving us profits.
- Our average profit per trade is about 10% and we are happy with profit because it does not put too much expectation into the returns from any particular trade, which is more consistent than targeting big returns per trade, which has less probability.
- When a trade starts going against our plan, we want to limit the loss by exiting that stock within 4-5% loss, and use that capital for a new trade in another stock.
- We track over 25 liquid stocks that we can actively trade in, and therefore our trading capital is never concentrated into any one stock, because that increases risk, which is easily avoidable by trading in multiple stocks at any given time.
- When we sell a stock as part of trading, it does not change our position on that stock from an investment perspective. For example, we may buy and sell some shares of Reliance Infra as a trade, but that does not touch the block of Reliance Infra shares we have in our investment account for the long term. In other words, we remain long-term bullish on all the stocks in the list above. Our trading just aims to profit from the daily/weekly/monthly fluctuations on the long-term uptrend in our portfolio stocks.
Following are a couple of sample trading data of two stocks from our portfolio, to give you insight into how we approach our stock trading:
Performance Summary of above charts:
- In the first case, 52% return was made possible over a 5 month period, while the underlying stock price increased by only 3.5%. In this case, a buy-and-hold strategy would not have delivered much returns, but trading has delivered good returns.
- In the second case, 273% return was made possible over a 10 month period, while the underlying stock price increased by 147%. In this case, a buy-and-hold strategy would have delivered good returns, but trading has amplified the returns.
Key points to note from the above charts:
- By actively tracking the market and moving between stock and cash, it is possible to generate better return than a buy-and-hold strategy. In addition, we trade with pre-defined entry and exit points based on technical and fundamental analysis, which helps in avoiding extreme losses that can occur by holding on stock like it happened with many investors in the year 2008.
- We do not want to trade daily on a particular stock otherwise the long-term picture is lost, and brokerage costs can rapidly eat into profits. We have tried different frequencies of trading and the above charts include our learning that 1-2 trades per stock per month on average are best to capture short-term swings in stock prices.
Please Note: The returns in the above tables are sample trades, and any specific returns are neither implied nor promised.
Next Steps: If you are interested in benefiting from market expertise, read about our Advisory Services, and subscribe to any of our portfolios to receive weekly portfolio updates (Hold or Buy or Sell along with price levels), which can help you take take suitable action at your end. You will receive our portfolio update email every weekend. Click Here To Subscribe.
If you have any questions, please see the FAQs, and you are welcome to contact us.
We look forward to hearing from you. Thank you.
