Week 3: First time Trading and 2% Profit in a week

Hi Friends,

Happy Sunday.

A very happy news in Indian Stock Market is Moody's Investment services has upgraded India's rating to Baa2 from Baa3. Many Investors have expressed it as the indication of a start of another Bull Market. It is good for the Industries, Country, People, and Investors.

I, for the first time, traded in the stock market and earned around 2.5% in a week. I am very happy about that. Let me explain my last week's activities in the stock market.

on 10/11/2017, GST was reduced for 178 items from 28% to 18%. I went through the list and found CENTURYPLY will be highly benefitted from it. It also has good earning year by year and its price was seeking new heights. I had the belief that it would gain around 5% that day. I even thought of converting the order from MIS to CNC if there is no increase in price as expected and to hold it for a short period. 

13/11/2017 CENTURYPLY 100 299.5   309 

13/11/2017 CENTURYPLY 100 302.0   302.5

13/11/2017 CENTURYPLY 100 302.25   302.5 ( while setting the selling price,  I mistakenly set it to BUY instead of  SELL)

13/11/2017 CENTURYPLY 100 301.5   301.7

Actually, the Market was not going well. It shed around 100 points. So I was afraid to trade after that. I was indeed correct.

GICRE posted 5 fold increase in profits. So I expected the price to hike. I already planned to sell NAVKARCORP at any price above 191.2 because its very low volume and its activity were almost static.

14/11/2017 GICRE 20 828 830

14/11/2017 GICRE 25 823.5 824.5

14/11/2017 GICRE 30 823.5 821

14/11/2017 NAVKARCORP 192.5 ( 191.2)

Again, the market was tanking. I was very much afraid. So I sold at the stop loss of 821. But the stock went to 825 after that. Bad luck guys.

15/11/2017 no trading due to bear market behavior

on 16/11/2017 Market started very positive with Sensex gaining 100 points as the Oil price started declining. So I just wanted to look at how the stocks in my portfolio and watchlist behave. BHEL and GICHSGFIN were still negative. So I sold both of them. 

16/11/2017 BHEL 15 87.30 ( 94 )

16/11/2017 GICHSGFIN 2 422.85 (479.75)

16/11/2017 LUPIN 5 823.50

I already had 3 LUPIN shares and they decreased by 3% and as LUPIN started increasing in price, I bought it again. I expect it to reach 900 mark soon. According to William O Neil, It is a mistake. He says there are plenty of good stocks to invest and why to invest in stocks whose value is decreasing.

On 17/11/2017 Moody's statement of increasing India's rating from Baa3 to Baa2 came. The Market sentiment was extremely positive. Sensex was up 350 points. I believed it was the time to trade. I went through moneycontrol.com, thehindubusinessline.com and some other websites for intraday recommendations. I found MINDTREE and RHFL.

17/11/2017 RHFL 300 72.00 73.25

17/11/2017 MINDTREE 50 511 513.5

17/11/2017 RHFL 300 73.25 74.5

17/11/2017 RHFL 50 72.75 74.5

So, guys, I am happy that I gained around 960 on Monday and 912 on Friday. BHEL and GICHSGFIN posted more than loss of 214+brokerage

My Holdings as on 17/11/2017 is shown in the picture below

Lessons Learned

1. Mr. Market may be a fool but he determines the fate of trading. So always have an eye on him

2. Don't Buy when the stock price is decreasing

3. There are plenty of good stocks to invest. don't go for laggard stocks

4. In Bull Markets, for trading, choose the one with good balance sheet, earnings, and good volume

5. Sell your worst performing stocks first

I am reading "How to make money in stocks by William O Neil". In the Next post, I will try to summarise the book. Thank You, guys.