June 15, 2024
This article explains how to make a perfect trading journal. I expalin in detail how I made a good profit by positional / swing trading

How did I make 60% in this stock? (Trading Journal series)

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CYIENT – March – October 2023.

Hope you know, I publish my finished trades frequently in my Trading Journal Series and today I am going to talk about a good trade I took in March 2023 that gave me around 60% in profits.

At the end of march 2023, market was slightly stabilizing and it is during these times, I hunt for good stock set up that break out into all time high or trading very near to all time high zones.

This was how the Nifty looked like when I started to look for set ups. Though this trade was taken a week before this “cup and handle” breakout, it gave me confidence to hold the trade till it lasts.

Cup and handle breakout - Mark Minervini

CYIENT LTD had a good run up in the prior bull run and was forming a beautiful base. Finally on March 24 of 2023 it broke out of consolidation with good volume.

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Trading Journal Mark Minervini

To understand the beauty of breakout see the weekly chart below:

Stan Weinstein Trading Strategy

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Triple confirmation pattern by STAN WEINSTEIN: An explosive pattern to triple your account size (With Live examples)

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Financials also looked good. Estimates were rising and EPS Change % was also up by 141 %.

After the breakout the chart continued to show strength and was heading higher and higher. See the increase in volumes as the stock price heads higher and decreasing volume when it pulls back.

I again added a very few quantities around 24 th August 2023 as it formed a small base and broke out again.

However, after my add up, the stock didn’t go as planned. Started slowing down and then entered lower high and lower low structure. I exited all the quantities and booked profit around 60%.

Now, after the trade is over, it’s my habit to see how the trade went after a few days / weeks. The stock will still be on my watchlist. If it gives me a good entry point, in a few weeks time I may again enter it. Though Cyient gave me a good entry point after my exit I could not enter as my positions were already filled and I didn’t want to switch my positions back.

It was really difficult to make that decision, but I went on to follow my rules. Though in hindsight it seems that I had missed a great opportunity to make money, there are no regrets.

As Mark Minervini says – 

“What happens before you take the trade and after you exit the trade doesn’t matter. Only thing that matters is what happens when you are in the trade.”

Mark Minervini

See the chart below: As of today CYIENT is at an all time high price of 2198.

DISCLAIMER – Kindly understand that there are “N” number of ways to trade. My entry, position building techniques, and exits can be done differently by different traders. For some it may look like a late entry, while some may think that I exited too soon. It all depends upon the psychological makeup and the risk profile of the trader. 

So, if some points seem to be irrelevant or if you think that it could have been done the other way around, I agree with you completely. It’s just that, this is how I trade and my trading style may change in future as I evolve as a trader. 

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