SB - Big Moves

 

50% + in a month / volume activity burst

 

Monster Stocks Important Notes

 

Next, is defined, what is a monster stock?

Back to O'Neil and some monster stocks that worked for previous men

How to Scale?

 Key learnings: 

- A small account (< 100k) can only be grown via swing trading, and finding explosive stocks; rather than day trading and other totkas.

- High Risk; High Reward; High Loss Scenario

- Once, it grows to $100k (~ 83 Lakhs INR); things can be done.

The next goal will be to reach $500k from $100k, i.e. around 4 crores 15 lakh rupees. This amount (in US terms) would be good for sustaining a lifestyle via trading. 

M20 BULLISH ANTS 29-12-2023

 

NH

                          PRITIKAUTO

PAISALO

Learning About Breakouts and PEAD

 It seems like the color red, loves me. Many people call me a "red flag", but one other thing which is indeed red as fuck apart from the CPI(M) flag in my almirah is my equity curve /s. Since the desert cults started fighting, and before that the infamous one-day midcap crash (when the indices fell by ~4%), I am now sitting upon a pile of booked losses, around -5% returns since I started delivery trading on May 20th, 2023. 

The major problem seems to be a lack of a confirmed setup. Ameritrade and IB ain't doing shit to get my applications approved so I am still trading the Indian markets, where stocks are capped by circuits of 5, 10, and 20%. No stock moves or goes down more than 20% in a day. So, that seems to have limited the winning stocks. As of now multiple blogs on swing trading, and some books are the only source of my learning. I want to retry the method of delivery volume percentage, but it seems that this method has an incredibly high amount of capital required per trade, which constitutes around 10% of my total capital implemented. This needs to be solved with time, which can probably be done once I have my account size grown. But that's for later to ponder upon. Right now, a market monitor on chartink seems to be providing some value for thought. 

Chartink, no doubt, as been helpful for me to scan the stocks and select candidates from trading. Anticipation also seems like a nice way to pre-select stocks before the market opens, and put GTT orders on kite, in order to enter a particular stock once it starts to break out of a base. I would try reading up, and learning from the different blogs, in order to refine these processes.

Au revoir! 

:3

Still Alive and Trading (Some Backtests & New Theories)

The delivery trades have been pretty good, apart from two fucked up stocks namely Borosil Renewables and Cummins (although it seems to be a fundamentally great stock with a healthy dividend yield). These two stocks went down around -10% before which I had to close my positions in order to get back my funds to look for better trades. Although a great strategy, a large share of my portfolio must be allocated for a single trade, which certainly is unhealthy. Even after the drawbacks, I tried backtesting some of the stocks that regularly go beyond 65% delivery volume, and the returns over a period seem promising. In some cases the stock may have generated single-digit returns in a year, or even negative, but the delivery volume strategy has outperformed the aforementioned.

Stocks that were used for the backtest are:

(1) Bharti Airtel:

Entry Condition: Buy @ (Day Opening Price on Day n+1) if (Delivery Volume on Day n >= 65%)

Exit Condition: Sell @ (Day High) or (Next Day High) 

[Dubious af, because how the hell is one supposed to know the day high]

 The Backtests; The Rightmost column shows the return generated on every trade from Sep 2, 2022 to Sep 1, 2023

(2) Emami Ltd.

You can try the same for Emami, it generated around 100% over a period of time when the stock fell like 27%. Cringe Excel did not save the files for some reason and I'm too tired to backtest it now lmao.