Trade summary + functioning of a volume-price trader(VPT)

Hello friends

Its been over a week now that i started blogging. Today being a month end decided to put up a quick summary for trades initiated so far. This will also make my reader familiar with volume-price trader ( VPT ) so that i may not have to put up a detailed following on for all my future trades.

U might find it bit stretched but focused reading is highly recommended.

*** bold & italics --- please pay special attention ***

V started trading with UTV SOFT & Dhanlaxmi Bank.

UTV SOFT ( success, 4 % gain ) - Recommended to buy in a range of 398-395. since it has been trading around that band for more than 2 trading days, then only i assumed that its bought ( i would restrain myself from a BLA BLA kind of attitude if scrips i recommended doesnt provide us an opportunity to buy @ desired levels ). Along with initiation of trade SL( All my trades wud always be given with a SL, most of the times trading SL rather than a sl on closing basis ) & targets ( Always take a pre assumtion that trade initiated on the basis of price to volume are meant to be booked partially if not fully @ appreciation of 4-6 %. )were also given. It tested our patience ( Dont ever let PATIENCE TESTING close the trade untill either a SL is hit or a TGT is met i.e. dont ever let a running trade be intervened by market mood ) staying rangebound for more than 3 trading days ( 396-404 ) but finally broke out & hit a high of 414.75 ( our recommended booking level was 414-416 ). I feel glad that it respected both my levels. Low was exact a 395.25 & high an exact 414.75. Conservative ( conservative VPT trader trades prefer capital preservation over illogical profits ) traders were asked to book, whereas agressive ( agressive VPT trader is a greedy trader, he is ready to give up the lil profit offered by markets to gain higher profits ) traders were suggested to carry with a SL of 398 , then 400 & 401 resp.( This is why trailing is meant for , trailing lets u expect more if scrips overshoot if not at least helps u cut the trade cost to cost. )

2.Dhanlaxmi Bank ( trade not initiated )- Clearly mentioned to initiate a trade only @ 168-169, also mentioned not to buy even @ 168-169 if a high of 177-179 is already made. ( Clarity wud always b there in my recos,i know clarity doesnt augur good for report card of a analyst but i am ready to accept a failure rather than cheating my readers with a " read between the lines " kind of attitude. as my readers' trust is more worthier for me than a brighter report card )

3.Mcdowells ( cut cost to cost ) - It was a short call ( like my mentor Nooresh i find myself uncomfortable with short calls untill more than sure ). & i term it as a success as i was able to let my reader come out of the trade cost to cost.

4.Tech mahindra ( Cut cost to cost ) - That trade was initiated for a quick 15-20 points of a gain in dieing ( a big no no for such trades, i avoid initiating or monitor our positions in initial or dieing minutes of trade ) minutes of the trade . If i recommend such kind of trade, please pre assume that trade has either to be closed if tgt/sl hit or the time ends.

5.Indian hotels ( success, 4 % gains ) - This is a perfect example , what VPT trades for. Volume erupted, b/o happened, we awaited for a certain level( whichever analysis u use, always wait till risk reward ratio comes into your favour, make it a golden rule, ur successes would be more than the failures ) to enter. & booked out @ 4 % ( a conservative VPT places the sell order @ 4 % if a buy is initiated, wheareas a agressive VPT places a sell order of at least a 50 % or more quantity @ 4 % to maintain the comfort level to carry the rest for a bigger target, until da trailing sl hits ).

6. PFC, FED BANK ( Failure, SL hit ) - These both were neither a conservative or agressive trades but a IMPULSIVE trade. & taking lesson ( always keep a trade record of ur failures and successes, this habit lets u not to repeat the same mistakes in ur future trades & boosts ur confidence in testing times ) from the same i have decided to control my impulses ( readers are also suggested the same ) to create wealth for my readers.
Even then these 2 traders were not a complete failures, since we awaited till risk reward ratio comes into our favour ( make urslf a set of rule and always follow it ) before initiating our trades & we not always knew our sl's ( Sl is to trading what contraceptives are to love making ) but also placed them as soon as the buy was initiated.

7.-BEL ( Trade is still on ) - This trade awarded us a label of PATIENT TRADER as we awaited it to come down 8-9 % from a high of 1860 to 1695 ( or we would have avoided it ) to initiate a trade.

8.-Grasim ( Fail , SL hit ) - VPT identified that it has got a supply in the band of 1840-45 and patiently awaited for it to come down to level of 1795 to initiate a trade or rather he would wait for it to cross that resistance band to take position. But we bought it & as a matter of discipline our SL hit.

9. Aban ( most successful VP trade so far, over 10 % gain, that too within specified time period ) - VPT identified a supply @ 760 band, and awaits it to cross this resistance. It gave us ample of opportunity to enter the trade and since it was a B/o we always believed it should not come back into this range ( else we would have squared it off ). Conservative already booked @ 818 ( as disciplined trader the sell order was placed @ 818, our target, as soon as buy was initiated ) & agressive ( always books 50 % @ 4 % or a desired target ) is trailing it with a SL of 822. ( 794 & 807 earlier TSL, it keeps trailing following the share price )

So, what are the inferences drawn from trades so far to describe the characterstics of a volume/price trader :

1. VPT ( volume price trader ) identifies the volume b/o in a stock.

2. If range b/o also happening that is a merit to VPT.

3. VPT awaits to initiate a trade till risk reward ratio comes into his favour.

4. As soon as the buy initiates, VPT places a SL.

5. VPT tries to identify a supply band & places a sell order @ band.

6. If supply band is not identified, conservative VPT places a sell order @ 4 %.

7. Even a Agressive VPT books out 50 % quantity @ 4 %/identified resistance .

8. Agressive VPT trailing sl follows the share price movement.

9. Conservative VPT doesnt mind if scrip overshoots as he has pocketed the desired profits.

10. Agressive VPT doesnt mind to cut the trade cost to cost in expectation of a bigger profit.


11.VPT doesnt let market sentiment intervene to close its running trade before either a SL is hit or target is met.

12.VPT has got a bottom up approach as he believes there is always a bull market everywhere, so he doesnt short untill he is doubly sure.

13.VPT places SL & sell order as planned, moreover he doesnt gets excited during initial and dieing hours of the trade except the planned trades.

This is how a VPT trades & i hope my attempts were sufficient enough to clarify any doubts about volume price trading, even if some doubts are there , my readers are more than welcome to put them up before me. i would try my best to clarify the same. also looking forward for the modifications/criticism suggested from my readers to bring upon mandatory improvment in me not only as a vpt but a blogger and a human being also.

wishing u all the very success in all ur trades.

happy sailing
please find a SAI NATH bhajan in the following link, i hope u people are enjoying it.

http://www.4shared.com/audio/SUfWcM2B/Ab_Samjhe_.html

SAI NARAYAN NARAYAN HARI HARI

P.S. - Why i chose only HAPPY SAILING as my tagline, please answer through comments to speculate. i am sure most of you people wud easily make the right guess.

TRADE UPDATE

SAINATH SABKE SAATH
hello friends
let me update u all for the trades given yesterday
DHANBANK- since, it has already made a high of 179, no juice left in it for us for intraday, we would all look at it this friday or next week in the band of 166-165, to initiate a long trade.
UTV SOFT- trade initiated, but volumes not encouraging. Fortunately it has given us an opportunity to place a SL 393.90, closer to our buy, if position taken is intraday(which i am not favour of ), but is positionally bought, our SL stay intact 389.90.
NEW TRADE
MCDOWELLS-SHORT TRADE
Can take a small short trade only and only in a range of 1266-1267, with a SL of 1281( trading basis ) & above for an intraday target of 1250 and lower. But since, risk reward ratio is not in our favour, its good if u can keep patience and try selling it in the range of 1273-1275, with same SL given above.
Happy sailing
No more updates for the above trades as explained in details with SL and targets.

Shri Satguru Sainath Maharaj ki jai
Hello friends
let us all switch to work
today is our first trade
and we are gonna have a look at UTV SOFTWARE
reason for trades
1. Its involved in latest blockbuster movie RAJNEETI
2. Three days ago reliance capital announced to buy a 18 % stake in its arm.
3.Neither of above 2 factors seems to have factored in its price since last 10-15 days.
4.Since it is near to its support 391, so risk reward ratio looks favourable to take a trade.
5.Media shares have not been in limelight unless a week ago, when all of them had a ride.
So, friends our trade would be on long side

we would be looking forward to buy it in early trades tomorrow morning i.e. 9-9.15AM @ 395-398( all NSE)
our trading stop loss would be 389.95
our first target would be 412-414 intraday & second target would be in the band of 424-428 positional, if it closes above 407.
The key trigger being volumes, so if on NSE, volumes till 11 am is over 30000-40000 , we would assume that our trade is in right direction.

TRADE NO. 2
HIGH RISK TRADE
DHANBANK
It attracted heavy volumes on tuesday also given a B/O above 166, and if u go through the intraday graph , as soon as it crossed 165 today, it never looked back and exploded like anything to make an intraday high of 183.
DONT DONT expect such kind of explosion tomorrow also, since scrips after such an explosion tend to give a lil spark only on long side to create and impression that its gonna explode today again. SO, be alert.
Try to buy it on lower side, only and only @168-169, otherwise not. Mind u, only and only in the band of 168-169 otherwise not, that too only if it has not made a high kind off 176-178 i.e. if it hits a high like 176-178 before u get to buy in the band i gave, LEAVE IT. It would be a trap.
Now, if u get to buy it in the range of 168-169, before it hits a high above 175, u got every chance that it gives an intraday high of 176-178. So, simply buy in the range of 168-169, PLACE a strict strict trading sl of 164.90, and get set for the target of 176 at least @ eod. Dont keep delivery, untill u buy it >167.
So, if ur buy is between 166-167, and u r not comrotable to keep a SL, keep it as a delivery for a target of 176-178, if not intraday then next week tuesday to wednesday.
and if u buy it too early in the band of 168-169, then need not to keep delivery.
BOTH THE ABOVE BUYS only and only if it doesnt hit an intraday high of 176-178 before u buy, otherwise leave it, we would gonna have a look at it either on friday or monday when it would make another move.
So guys happy trading, looking forward towards ur comments( be it a appraisal or a cricism, WELCOME)

DISCLAIMER - Reader and only the reader would be responsible for any losses if occur due to the trades given here on this blog, as this blog is for educational purpose only.
Shri Sathguru SAINATH maharaj ki jai.