Tata Global Beverages

Scrip: Tata Global Beverages(NSE)
Earlier this was known as Tata Tea.

Trade Enter Date : 4/10/2010
Trade Exit Date : 7/10/2010
Options : Call
Strike Price : 130
Bought 1 Lot.


Pattern : Swing Trap Pattern
This is more famously known as ABC wave (Elliot Wave Theory).
On seeing the hammer in the marked area, a lot of traders are deceived to feel that selling has stopped.
But this is a swing trap. This wave doesn't go as high as the previous one.
And now when it falls again, a lot of traders have to take a loss. The black hammer in the focused region just shows all the stop loss orders that might have got triggered before buyers pushed prices back to near the day's open.

Now that all the sellers are gone, this stock can rally. And boy, did it rally.

I entered this trade a bit later for many reasons.
1. The liquidity in Options was not very high just after the black hammer day.
2. The sellers were all quoting very high prices, since the time value of the option was high (beginning of the month) .

Ideally, since this was the breakout wave, I could have held on my position a bit longer. But since Options contracts lose value in time, I just took the profit taking decision, and took pretty decent profits on this one.

But there is still money to be made in this stock for now, as its still in the breakout wave. Watch the stock for a pullback, and see if this can be a profitable trade.

Update : I planned to re enter again in the third wave. But got stopped out as the pattern broke down from there. The quarterly results that were announced also didn't give enough trigger for a major rally.

IOB

Scrip Name : IOB(NSE)

Trade Enter Date : 29/09/2010

Trade Exit Date :7/10/2010.

Buy Price : Rs.132.5

Pattern : Spinning Top seen after a strong downtrend.

Oversold condition confirmed by William%R.

Entered trade in anticipation of a trend reversal.


Profit taking:
   a. Sold some at Rs.140.56 on 4/10/2010.

   b. Exited at Rs.148 on 7/10/2010.

Looking at the volumes and the short time in which IOB has gained more than 10%, it looks like a breakout wave. I guess there is more opportunity to make money in this stock once a pullback occurs.

I would want to hold this position a bit longer, but had some other money management activities lined up. So closed the position.

IDFC

Scrip Name: IDFC(NSE)

Trade Enter Date : 30/09/2010

Trade Exit Date : 4/10/2010

Pattern : Bought at the end of pullback after rally. Spinning Top seen.

Bought Call Option.

Lot Size: 2000.
Strike Price: 210.

Since it was entering into the last motive wave, the upward move didn't look strong. So I decided to close the position and took a decent profit.

Had I traded it a week or 10 days earlier, it would have been a far more profitable trade.
Still learning the tricks of the trade you see!

My First Swing Trade

Scrip: Yes Bank(NSE)

Trade Enter Date : 13/09/2010
Trade Exit Date : 4/10/2010

Pattern : T-30.
Since Yes Bank had retraced more than 50% in its corrective phase, this was a slow trade.

Initial buy price :Rs. 324
Profit Taking:
a. Sold Some at 335
b. Sold some at 343
c. Exited at 357

This trade was so slow that it began to test my patience. Finally, I decided to exit with a decent profit.