Friday, October 16, 2009

Culmination of Swing Trade

Today has been the last trading session for swing trade recommended in my blog post dated 12 Oct 2009. What a swing it has been!!! For quick reference please click the link given below.

If you have been trading the swing as per my recommendations, then today you must be laughing all the way to your bank. Lets evaluate the performance of the swing trade recommended in the link above. I had recommended buying October Futures of three scrips, viz HDIL, Nagarconst and Asian Paint. Out of these three, Asian Paint could not be bought since the recommended buying price was not met in trade. For the other two scrips lets calculate your total profit from this swing trading strategy as of today, since I had advised you to keep the trade for 3/4 trading sessions.

HDIL. Recommended buy price of HDIL Oct Fut was between 352 and 362. Supposing on 12th Oct you bought your position in HDIL at 357.5 (day low was 357.2) then you would have sold today at 398.5 (day high was 398.95). Lot size is 774.
Profit per share = 398.5-357.5 = Rs 41/-
Total profit = 41 x 774 = Rs 31734/- less brokerage.

Nagarconst. Recommended buy price of Nagarconst Oct Fut was between 164 to 166. Presuming you bought one lot of Nagarconst at 165.5 (day low was165.1) then you would have sold on 14th Oct at recommended price of 179.5, which incidentally was also the day high. Lot size is 2000.
Profit per share = 179.5 - 165.5 = Rs 14/-
Total profit = 14 x 2000 = Rs 28000/- less brokerage.

Grand Total Net Profit = 31734 + 28000 = Rs 59734/- less brokerage = Rs 59000/-

So now you would agree that the swing trade did give you handsome return. Your total capital investment was around Rs 1.5 lakhs and the return on your investment (ROI) was 39.3% in just four days. If you have liked my swing trading strategy then do give your comments and follow my blog for more of such trading insights and game plans. Hope my recommendations continue to enrich you consistently by way of startling wealth creation.

I have also been giving day trading recommendations every day before the start of the market. Please check out today's recommendations or click on the links given below.

Happy Trading! Happy Diwali!


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