18 th FEB Intraday

Shorted TATACOMM 250 shares @405.65
Bought BHARTIARTL 300 shares @ 357.6
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Update will follow in comments area below!

I will exit at 3:15 pm . If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Pair trading

Since the 1980s, one of the most well-known and heavily used strategies among hedge funds and portfolio managers has been pairs trading. The pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. 

In a properly hedged pair, an investor goes long on one stock and short on the other. Thus, when the market goes up, the long position follows suit and profits, while the short loses money (and vice versa when the market falls). The relationship between the two stocks (known as a spread) will influence whether the overall position prospers or not.

Pairs trading have the potential to achieve profits through simple and relatively low-risk positions. The pair trade is market-neutral, meaning the direction of the overall market does not affect its win or loss

To profit from this strategy, you have to choose good pairs in the same industry with similar business models and a consistent, historical relationship. Pairs trading strategy demands good position sizing, market timing, and decision making skill. Although the strategy does not have much downside risk, there is a scarcity of opportunities, and, for profiting, the trader must be one of the first to capitalize on the opportunity.

A profit or loss on a pair trade depends on whether the spread between paired positions widens or narrows.

Example for Pair trading:


Please take a look at Jindalstel and Tatasteel stocks. Both the stocks are in same sector.
3 month back (13.11.2014) rate:
 Short 200 shares of Tatasteel at 471.25
Bought 400 shares of  Jindalsteel at 152.3
Today price(16.02.2015):
Short 200 shares Tatasteel at 471.25      -373.5 
Profit -471.25-373.5=98.05*200=Rs 19610
Bought 400 shares Jindalsteel at 152.3    -153.2
Profit-153.2-152.3=1*400=Rs 400.

Still you have any doubt about pair trading please visit below link.

http://www.tradingmarkets.com/featured_contributors/how-to-successfully-pair-trade-1584315.html

http://techpaisa.com/2011/sep/26/pairs-trading-strategy/

16th Feb Another trade

Bought JKlakshmi 800 shares @383
Shorted ACC 200 shares @ 1630
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Update will follow in comments area below!

I will exit at 3:15 pm . If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

16 th FEB Intraday 2 nd trade

Bought TVS Motors 500 shares @307.95
Shorted Tatamotors 300 shares @ 570.35
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Update will follow in comments area below!

I will exit at 3:15 pm .If you think the profit is enough for you, exit at any time. Even if you are in loss, please exit at your comfortable risk level.

16 th FEB Intraday

Bought Axis bank 300 shares @579
Shorted ICICI bank 500 shares @ 345.5
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Update will follow in comments area below!

I will exit at 3:15 pm . If you think the profit you get is enough, please exit the trade.Don't Wait for my update.

Weekly Profit and Loss update

Here I am posting the weekly profit and loss update for our Intraday calls.

Last week(2-Feb to 6- Feb) Profit was Rs 16867.5.Please see the below link .

 http://www.nseanalyst.blogspot.in/2015/02/intraday-weekly-profit-and-loss-update.html


This week profit:
 


Total Profit for this week -Rs 18129

I hope every one got some Profit.Feel free to leave comment if you need any further clarification.

13th Feb Another trade

If any body has missed the earlie two trades, the below pairs looks good for today as an intraday trade:

Short Bankindia 400 shares @ 233

Buy Canbk 220 shares @ 405.5

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Exit Upade:

Buy Canbk	405.5	415.7	2244
Short Bankindia	233	235.2	-880
		Total Profit	1364