THIS IS HOW I MADE 111% RETURN IN GMR_PUI
puipui
Increasing Relative Strength >>> High Relative Strength
So a good trade came to an end this weekend.
I made a 111% return on GMR_PUI.
In this article, I am going to describe the entire thought process and execution of the trade.
Less go…
Scanning: How did I find the stock?
Bull market was just starting to take a concrete shape.
There were still fears of correction.
I was at my weekly scanning session where I scan the indices. This helps me scan for groups/index/sectors/stocks (GISS) which are beginning to outperform the broader markets.
I am looking at 2 things at this point of time:
A direct evidence of relative Strength:
This is visible directly on the charts. The MARS line will slope up. It should be above zero. This tell me that the GISS is now performing better than CNX500 in last 50 days or so (isn’t that what you want in your portfolio stock?).
A reversal or Breakout pattern on the charts:
Basically that the trend is reversing or moving to an uptrend.
While doing this, I saw that the power sector was undergoing a Downtrendline Breakout after a huge and prolonged downtrend.
Notice, RS moving to positive while the DTL breakout happened (image).
The RS was already hovering in positive territory from late March even before the Markets reversed which was at March end and early April.
Now that I had identified Power as a possible outperforming sector in the future, I wanted to add atleast 1 name. Preferably which was also on the verge of breaking out.
I therefore scanned my entire Power sector names and zeroed down to 2 names:
GMR_PUI and JSW Energy.
As the latter was a larger cap and also the former was a relatively young stock I chose the former to place my bets.
ENTRY:
Entry was above the cheat pivot (17.7 ish) at 18.15.
It was a cheat entry in anticipation of a trend reversal.
The confirmed breakout entry was above 19.95 (marked on chart).
Therefore my entry was anticipatory + Cheat.
Risk Management:
Intial Stoploss was at 16.65 which is below ST10/3 (wow for SL and trailing) and below the tight area of the Cheat. With a position size of 11% and an SL of 8.35%, my risk on the trade was still below 1% of my account size.
The trade never took my SL and worked well.
It did go beyond 30% on the day the world knew that it is also a peer of Genus and HPL (20% UC open) and part of the metre theme. But then huge selling came.
I did not want the trade to go to the loss column and so I sold half the size when it broke the swing low on 2nd Aug 2023 at a party gain. This was an exercise of trade management. Never let a good gain turn into a loss (Minervini zindabaad).
The rest 50% I trailed and eventually sold this week.
So that was the short story of my pui pui trade.
Whats next now?
Well, we move on to the next trade and find the next pui pui.
The cycle goes on.
We take some losses in the process but make sure they are small and few.
Most importantly, we trust and follow the system.
If you do not have a system yet, I can help you create one that will find the next puipui consistently (Not kidding, Gmr_pui was my 4th 100% trade this bull market after RVNL, Olectra and IRFC).
My Masterclass show you the best system suited for your personality, & my private access group (HPA) shows you my process day in day out. More details below:
The Sakatas Homma TA masterclass for beginners:
A monster course 8-10 hours. Hourly sessions on weekends. Twice a year.
Please register for the next batch using the link below.
https://docs.google.com/forms/d/e/1FAIpQLScfnQA1w9WDTtTAPEHIqzkS9jhRSZFA1BZXuWRZ5JPZ3Qfu8g/viewform
Watch my 1st session of the spring 2023 batch.
Homma Private Access membership:
HPA is a subscription-based educational service (on WhatsApp). Benefits include:
Daily Market Breadth Update.
Access to my scanners, dashboards, and charting layouts.
Weekend hourly session and Q&A.
Live updates on my portfolio and the trading setup rationale.
Live updates of key setups I am tracking.
Yearly membership of 12000/- INR only.
UPI payment & WhatsApp @ 9481506784.
Thats all for today mate.
Untill next week
Yours
Sakatas “puipui” Homma.