Hi,

I am a newbie and this is my first posting. I want to post my trades and reasoning behind them as a log. This is merely a record of my trades and I do recommend that you don't take these picks as tips..!!I have been wrong a lot..

Please feel free to comment on it..!! Any comment is very welcome.

I basically have 5 rules which have helped me over a period of 4 years.

They are:
1) Watch for a specific event ( favorable set of indicators ).
2) If such an event appears, take a position.
3) Monitor the stock for another event (unfavorable set of indicators).
4) If such an event appears, exit the position.
5) If the stock trends lower without any event, stop-loss it out.

As you can make out, time and price are irrelevant. It is of course a work-in-progress..!!

My Current Positions:
----------------------
HDFC @ -4.45%
Entry @ 668.95 on 10/8/2011
Reasoning for Entry :
1) Bull Engulfing with volume > 10 day avg volume
2) Low Relative Strength Index
3) A tentative triple bottom with support @ about 625
Note :
1) The triple bottom is tentative.

Thank you for reading. Please feel free to comment on the executed and prospective trades...!!
Thanks,
Amit

Disclaimer : Please don`t take the stocks mentioned as tips. My system is far from perfect.

Price may be irrelevant for traders, but time is relevant.

All returns are measured with respect to time.

A stock that appreciates 20% in a year, is much better than a stock that appreciates 20% in two years.

No one wants to be in a stock that will appreciate 4% every year for the next 30 years. .

__________________
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hi,
Thanks for reading,
@Sachin : I couldnt agree more.. It is a part of the equation, I am trying to figure out myself... Question is this : If there is a winning position, should i cut.? Second question : What makes a winning postion a `winning position` ?

MY OLD POSITIONS:
HDFC
Entry @ 668.95 on 10/8/2011
I sold this position on the 26/8/2011 @ 612
Reasons:
1) It had breached the tentative support @ about 626.
2) It was shadowning the NIFTY
Learnings:
I wish I had waited a little longer. I panicked and after selling the position, HDFC promptly when and finished about 1.5%. And today, my anguish was compounded by the 3%+ move. Well, validity of the idea behind the trade has come into question. I am going to restrain myself before playing that "shot" i.e. [Bull Engulfing + low RSI + tentative support] again

NEW POSTIONS :
GARDENSILK
Entry @ 70.23 (avg) on 26/8/2011
Reasons:
1) A strong Three Inside Up candlestick signal
2) RSI - 14D is low
3) Support at about 67.
Please feel free to comment on these trades. Any comment is very welcome.
Thanks,
Amit