Hello Dear Connections,
I would like to share these two specific trades that gave me more than just profits, they taught me the
practical application of certain crucial trading tactics.
1. REC Ltd.
I have been holding REC since last almost 3 months with the ROI (Return On Investment) of
more than 50%. Towards the end of April, prices of REC broke above Rs.125 which had been an
important resistance zone for REC since the beginning of 2018!
Seeing that the next major resistance zone is around Rs.180, setting it as the target, I grabbed
this opportunity and bought REC in bulk. Fast forward 3 months, the prices have hit the target,
giving back traders a return of almost 50% and has also broken the aforementioned resistance
and is being traded at Rs.188. (As of 27th of July)
This particular trade has taught me to have patience and to believe in the power of price levels.
Patience plays a vital role in the Market, believing my trade setup and avoiding impulsive
decisions has allowed me to ride this long-term swing.
2. Equitas Small Finance Bank Ltd.
I bought Equitas at Rs.83 during the pullback of breakout above the resistance price of Rs.81. I
had placed my SL (Stop Loss) at Rs.80 since the ATR(Average True Range) of this particular stock
during that time was around 3. After fourteen trading sessions, the price of Equitas came as low
as Rs.80.10, that is just Rs 0.1 above my SL. Fortunately, my SL was not hit and 30 days down, I
have been able to get ROI of more than 20%.
This trade taught me the importance of having a clear head and trusting my analysis. If I had not
placed my SL at the right price, I would’ve incurred losses and would’ve missed out on the 20%
rally.
That is it for now. Happy Trading!