Sunday, December 30, 2012

Trading Plan for last day of year 2012

Hi Friends,
We achieved a high level of accuracy with our trades as you can see that more than 95% of them listed here, during this past year of 2012, were on target.
Hope your trades were good.

I have now decided to change my trading plan in terms of overall market analysis. I have finalized 13 stocks - which I am going to trade for the most part of 2013. These are the stocks which control more than 65% of index, both Sensex & Nifty, so why waste time with other 37 when we can get good results from these 13 stocks.

The plan which I am posting here is for the week of  31-Dec-12 to 4-Jan-13 only.

STOCKS WITH  +VE BIAS:-> LOOK FOR BUYING OPPORTUNITY
1. TCS
2. RELIANCE
3. ONGC
4. INFOSYS
5. HINDUNILVR

STOCKS WITH  -VE BIAS:-> LOOK FOR SHORTING OPPORTUNITY
1. TATAMOTORS
2. M&M
3. LT

Apart from the 8 stocks listed above, the rest of the stocks are likely to remain choppy so avoid trading them.

Happy Trading & I wish you & your family a Very Happy New Year 2013.

Tuesday, December 18, 2012

Options Trading Plan for Near Term

Options Trading Plan for Dec-2012

BHEL: cmp = 221, Mkt lot= 1000
Buy BHEL 220 CE Jan @11.00 X 1 lot = 11.00 ,  tgt 30, stop loss 5.00
hedge by buying BHEL 210 PE JAN @4.00 X 3 lots = 12.00, tgt 10, stop loss 1.5
expected profit 30-11-12= 7
ROI = 7/23 = 30%

NMDC: cmp = 163, Mkt lot=2000
Buy NMDC 160 CE Jan @8.50 X 1 lot = 8.50, tgt 25, stop loss 3.50
hedge by buying NMDC 160 PE Jan @3.00 X 3 lots = 9.00, tgt 10.00, stop loss 1.00
expected profit = 25-8.50-9 =7.50
ROI=7.50/17.50 = 42.85%

IRB: cmp = 129, Mkt lot=2000
Buy IRB 120 CE Jan @7.00 X 1 lot = 7.00, tgt 18.00, stop loss 2.50
hedge by buying IRB 110 PE Jan @4.00 X 2 lots = 8.00, tgt 10.00, stop loss 1.50
expected profit = 18-7-8 =3
ROI=3/15 = 20%