Performance

**Trades in year 2012**

The year 2012 has started with a bang, and we have been buying Nifty from 4750 levels and have sold at 5250, and 5350 levels. Once Nifty moved above 5000, we increased the capital deployment significantly, and have benefited from that decision. We still have long positions in some Nifty and Nifty Junior stocks. Following are our main trades of the year 2012 so far:

  • Nifty — Bought @ 4750 and Sold @ 5450
  • Reliance Industries — Bought @ 735 and Sold @ 845
  • Reliance Infra — Bought @ 425 and Sold @ 555
  • Reliance Capital — Bought @ 275 and Sold @ 425
  • DLF — Bought @ 185 and Sold @ 235
  • ICICI Bank — Bought @ 770 and Sold @ 880
  • IDFC — Bought @ 115 and Sold @ 135
  • Hindalco — Bought @ 125 and Sold @ 155

Depending on the market conditions, we will be back in these stocks at suitable times.

Please Note: All our trades are done in parts, where we book profits at each intermediate target. All capital is not deployed in the start. Capital is added in phases, and profits are also taken out in phases. The above gains have come after many months of downtrend in the year 2011. So it was good to see FIIs finally deciding to buy Indian stocks at low prices. The beaten down stocks in Infra, Metals, Banks, Real Estate have done well in 2012 so far.

**Trades in year 2011**

Stock Action Buy Price Sell Price Gain Duration
Gold ETF Buy 1975 2175 10.13% 12 weeks
Gold ETF Buy 2175 2575 18.39% 6 weeks
Gold ETF Buy 2550 2750 7.84% 4 weeks
Stock Action Buy Price Sell Price Gain Duration
Nifty Buy 4920 5350 8.74% 3 weeks
Nifty Buy 5550 5270 -5.05% Stop Loss
Nifty Short 4900 5560 13.47% 5 weeks
Nifty Buy 5520 5920 7.25% 3 weeks
Nifty Short 5350 5980 11.78% 6 weeks
Stock Action Buy Price Sell Price Gain Duration
Reliance Buy 735 795 8.16% 4 weeks
Reliance Buy 810 880 8.64% 4 weeks
Reliance Buy 853 805 -5.63% Stop Loss
Stock Action Buy Price Sell Price Gain Duration
DLF Buy 210 242 15.24% 4 weeks
DLF Buy 195 223 14.36% 4 weeks
DLF Short 200 225 12.50% 2 weeks
DLF Buy 235 270 14.89% 4 weeks
DLF Short 235 275 17.02% 3 weeks
Stock Action Buy Price Sell Price Gain Duration
Hindalco Buy 123 140 13.82% 4 weeks
Hindalco Buy 133 155 16.54% 4 weeks
Hindalco Buy 133 125 -6.02% Stop Loss
Hindalco Short 160 180 12.50% 3 weeks
Hindalco Short 175 195 11.43% 3 weeks
Stock Action Buy Price Sell Price Gain Duration
Tata Steel Buy 415 455 9.64% 3 weeks
Tata Steel Buy 435 495 13.79% 3 weeks
Tata Steel Buy 595 565 -5.04% Stop Loss
Tata Steel Short 495 545 10.10% 2 weeks

**Trades in year 2010**

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:

  1. We will do multiple trades in stocks that are giving us profits.
  2. Our average profit per trade is about 7-10% and we are happy with it 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 lower probability.
  3. When a trade starts going against our plan, we want to limit the loss by exiting that stock with 5-7% loss, and use that capital for a new trade in another stock.
  4. We track about 20 large 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 avoidable by trading in multiple stocks at any given time.
  5. 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 change our view of Reliance Infra as a good investment over 5 years. In other words, we remain long-term bullish on all the stocks in the list above. Our trading just aims to profit from the short term market fluctuations in our portfolio stocks.

Please Note: The returns in the above tables are indicative trades, and any specific returns are neither implied nor promised.

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