Look at this plan. The shares are again of BHEL (India) traded on the National Stock Exchange – NSE. The trading lot is one lot of 75 shares. The approx margin is about Rs.25000. This strategy works when the market price is range bound or when there is a high volatility.
The plan is as follows:
- Buy when the previous day was a bear day and the current day is a bull day.
- Buy at the closing price when the market is closing.
- Place a sell order the next day at buy price + 65 basis points (65 basis point is not sacrosanct. You can decide keeping in view the risk you are willing to take.)
- If the sale is not executed and that day is a bear day then sell it at the closing price.
- Then wait for the bull day after a bear day for the next trade.
Remember no plan or strategy is fool proof and will give profits always
|
Date
|
Open
|
High
|
Low
|
Close
|
|
Day
|
|
Date
|
Buy
|
Date
|
Sell
|
Net
|
|
31-Oct-08
|
1205.00
|
1293.00
|
1205.00
|
1280.30
|
|
|
|
|
|
|
|
|
|
03-Nov-08
|
1331.75
|
1374.00
|
1268.35
|
1341.30
|
|
Bull
|
buy
|
3-Nov-08
|
1341.00
|
4-Nov-08
|
1406.00
|
4875.00
|
|
04-Nov-08
|
1360.00
|
1424.70
|
1316.15
|
1412.10
|
|
Bull
|
|
|
|
|
|
|
|
05-Nov-08
|
1450.00
|
1465.00
|
1355.00
|
1364.45
|
|
Bear
|
|
|
|
|
|
|
|
06-Nov-08
|
1330.00
|
1423.00
|
1295.00
|
1374.55
|
|
Bull
|
buy
|
6-Nov-08
|
1374.00
|
10-Nov-08
|
1439.00
|
4875.00
|
|
07-Nov-08
|
1363.10
|
1435.00
|
1331.00
|
1404.25
|
|
Bull
|
|
|
|
|
|
|
|
10-Nov-08
|
1430.00
|
1525.85
|
1418.00
|
1509.80
|
|
Bull
|
|
|
|
|
|
|
|
11-Nov-08
|
1502.00
|
1502.00
|
1340.00
|
1358.10
|
|
Bear
|
|
|
|
|
|
|
|
12-Nov-08
|
1330.00
|
1394.00
|
1297.65
|
1332.55
|
|
Bull
|
buy
|
12-Nov-08
|
1332.00
|
14-Nov-08
|
1282.00
|
-3750.00
|
|
14-Nov-08
|
1373.90
|
1379.00
|
1255.60
|
1282.60
|
|
Bear
|
|
|
|
|
|
|
|
17-Nov-08
|
1270.00
|
1311.80
|
1229.10
|
1296.20
|
|
Bull
|
buy
|
17-Nov-08
|
1296.00
|
18-Nov-08
|
1264.00
|
-2400.00
|
|
18-Nov-08
|
1266.25
|
1292.70
|
1243.10
|
1264.35
|
|
Bear
|
|
|
|
|
|
|
|
19-Nov-08
|
1265.90
|
1326.50
|
1190.10
|
1225.75
|
|
Bear
|
|
|
|
|
|
|
|
20-Nov-08
|
1180.00
|
1202.70
|
1148.00
|
1177.30
|
|
Bear
|
|
|
|
|
|
|
|
21-Nov-08
|
1198.00
|
1300.00
|
1175.10
|
1284.00
|
|
Bull
|
buy
|
21-Nov-08
|
1284.00
|
25-Nov-08
|
1349.00
|
4875.00
|
|
24-Nov-08
|
1281.00
|
1316.00
|
1250.00
|
1303.25
|
|
Bull
|
|
|
|
|
|
|
|
25-Nov-08
|
1328.00
|
1353.00
|
1272.60
|
1281.95
|
|
Bear
|
|
|
|
|
|
|
|
26-Nov-08
|
1380.00
|
1380.00
|
1243.00
|
1302.30
|
|
Bear
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
8475.00
|
| 
