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  • Writer's pictureraytraceventures

HPL Electric & Power on July 4, 2023 | Profit of Rs. 17,000

Updated: Jul 21, 2023

A swing trade was executed on the basis of below rationale: 1. It gave a 35% up move in 8 trading sessions with good volume creating a flag pattern.

2. The pull backs have been shallow with no major sell off.

3. A position was created as it broke above the resistance of 138.

An order of 1000 quantities was placed at an average price of 138.3


Risk Management A risk of Rs. 3,400 has been defined for this trade. As it moved on the upside, 134 level was fixed as the stop loss for this trade which is ~2.5% of the capital deployed in this trade.


Target As per risk to reward, 1:4 was fixed as the target for this trade which is at price level of 152 which is nearly 10% ROI.


Conclusion

After few tipsy steps the price moved in our favor with high volume of 5+ M. It was a good, quick trade which lasted for few hours. In a quick momentum we have achieved our target. For every Rs. 1 risked it gave us a return of Rs. 5 which is 1:5 as per risk to reward. Giving us 12%+ returns on the capital deployed resulting into a profit of ~ Rs. 17,000

Learning Below is the 15m chart of HPL on July 4. It clearly shows some pull backs which could be used to make an entry into the trade to get a good price even if it's a breakout day. Multi-timeframe analysis or using a 15m chart to place an entry can result into 2-3% of higher profit hence, further improving the efficiency of the trade.

Thanks for reading. Have a good day !

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