Sierra Cables - 12.43% within 3 months hit in 22 days. next one 40%

In the morning I mentioned about Sierra trying to hit 3.20. Finally it happened today, and gave a return of 12.43% in a matter of 22 days. My next level for this was a target of 40% at 4.00, and the period was within 12 months. Let's see whether you need to wait for 12 months to get a 40% return.

Limitations in Trading and how to overcome

Some people in the Market think that trading with Charts do not fit well into the Colombo Market. This perception has been turned into a misconception due to the frequency that the followers of Charts have put their trade setups into practice. But there are limitations that the average trader confront, which in turn discourage them to conclude that it is not working. If you have a semblance of passion and patience you will learn how to navigate from the restriction and become a winner. One such limitation is the liquidity or the amount of shares that would trade on a daily basis. If you are not experienced in handling this, then you would want to stay away. The SOLUTION for this is to decide on the volume well before you enter the order. There is also another limitation at the Exit point. This is something I'm experiencing even now. In Sierra Cable I gave the Exit price at 3.20 for a period of 3 months. In the last 2 days the stock closed at 3.20 but did not trade even 1000 shares, hence you can't consider it as a successful trade. At the time of writing it had opened at 3.20 with a volume of 5000 shares but we have to wait and see how the day progress in order to conclude it as a complete transaction. If it happens then there will be a return of 12.43% within a period of just 22 calendar days, against a holding period of 3 months.

ASI present trend

ASI broke out of .618 fib ret. today to close at 6230, and heading towards .764 of 6288.2.
The resistance based on the trend line plotted through the 1st higher low is at 6300 points.
Hence I expect the ASI to test the area between 6280 and 6300 before a
breakout from there. Also 6261 points is another major resistance point as that was the low it came down to on the 20th of January 2016.

I wish to see the ASI trending within the channel formed with higher lows of the
present uptrend and the 1st higher high.But we may move out of it before an adjustment.
8th will be critical, which is on the morrow. Also the next week will be a short week, as such I do not expect trend following traders to be active in these few days.

But could be an ideal platform to fish in the pond.

Present support is at 6130 to 6200. The uptrend will change if the ASI comes down below 6023 points.

Breaking down the Stocks that were covered and complete

On many occasions now I have posted articles on the performance of the Stocks that I've been covering and the eventual results of them once they were complete. My intentions were simple in that I gave Long term that were 12 months (12 months is theoretically not long term though), and short term (less than  3 months) buy calls.

Today I'm going to break them down. Firstly I'd like to display the Table of stocks that have been completed as of today, based on transactions that were  closed with profits and those which were stopped with losses. Table 1 has the list as follows:

The total completed trades now stands at 31, and 21 out of them had given a return of Rs.11,007.01, averaging 524.14 rupees in profits per trade. Whilst the loss is Rs. 7875.18, averaging a loss of 787.52 per trade.

An important point the traders follow is that they take the profit component out whilst allowing the future trades to recoup the amount that was lost. The key point here is that they know trading makes losses as well as profits. Hence they take the profit out whilst letting the losses be there to be covered over time. The easiest thing to do is to make profits and wait until the losses are covered to take the balance out. But trading is not a once and for all venture. Therefore they leave a margin of risk to cover the losses overtime. Another way is to take out profits after deducting a part of losses, may be 10% of the losses deducted when taking the profits out etc.

As per the above table you can take the profits out per trade or as a lump some of Rs. 11,007.01 and leave the loss as it is. Or you can deduct 10% of the losses i.e. 787.75 from the profit of 11,007.01 and take out 10,219.26. The reason as to why you must take the profits out is that IT IS THE REASON YOU TRADE.  You trade to MAKE MONEY. But if you look at the entire portfolio and wait until things are great or wait for the entire value to go up, may be you have to wait until cows come home.

After closing the above transactions the remaining purchases are given below as short term and long term record of transactions. This is something that your online portfolio won't show but you can do it personally.

  Please Remember to Plan the Trades and then Trade the Plan.

ASI - 6200 has a major Resistance will it break?

Yesterdays Market took an extraordinary turn as it went up over 80 points. Today's trend was not the one many expected, but showed a different perspective, as it took a considerable down trend in the morning hours, mainly amongst the Locally driven counters, but recovered even more strongly to close higher. The present trend could be checked at 6200 points, and if today's trend was a prelude to the future then we may see a breakout of that major resistance and move towards 6400 to 6500. Nonetheless the trend is more towards trading than investment due to highly confusing developments that took place during the last few months. Therefore Analysts will be closely watching the March Quarter performance to see how the Companies as well as the whole Market would fare.

Trades that were CLOSED or STOPPED thus far - Update 2

The PLAN is to have a PLAN before you need a PLAN.





Today's active trading climaxed favourably for the trades that were covered and completed as of today the 5th April 2016.

The tables displayed below give the status as follows:

Table 1 -

 

With today's completed trades there were 29 trades out of which only 10 were stopped with losses, increasing the trades with gains upto 19. The most important feature is that the nett position of these trades have now moved into gains from the loss position they were in as of yesterday. Nett Gains stand at .28% as against a negative of .47%. 

Table 2 shows the detailed position below:

 

Some are buying - Do you know why?

It is good to see some of you are buying. This means you have a reason. That is great. It will be greater ONLY  if you know why you are buying.

Trading or Investing to a plan is not difficult, but many care less about it at all. This is shear ignorance.

Planned Trading can be learnt without a cent spent, but why some do not I can't comprehend.

IF YOU ARE THE FEW WHO HAS A PLAN THEN YOU ARE ON THE RIGHT TRACK, BUT IF YOU ARE ONE IN THE MAJORITY THAT DON'T PLAN THEN IT IS TIME TO THINK.