My Stock Portfolio Revealed - YouTube

Welcome back to the last episode of the Basics Of Trading featuring Prateek and me.

In the last episode we saw how we backtested our 52 week high strategy for the last 20 years using AmiBroker,

we saw some statistics like accuracy, net returns, average profit and average loss.

To come to the conclusion that the system worked really well in the past.

In this episode we will actually use our trading system in the markets,

and I will be placing real trades on my trading account using a base number of one lakh rupees.

By the end of this episode, you will see how our trading strategy worked over a period of five weeks,

on that note it's the last episode guys do hit a like button to let us know that you enjoyed the series,

and leave a comment saying "thank you Prateek sir".

It would make him feel really nice and it would let the algorithm know to promote the series to more people.

If you hit like and comment, it will help the channel out in long way.

Thank you so much for watching.

On that note, let's see how our trading system fared.

Alright it's time Prateek.

All the 9 episodes we've done so far, being put to the test, this time it's your exam.

Will your student pass or no.

Let's see.

The real test here is not the profit loss that will come,

did you follow the system, or did you break the keyboard.

Yeah.

So what you guys are going to see now is the system that we have taken nine episodes to understand,

at work, for the next one month, and hopefully this gives you guys an idea about how

the system works, what it looks like and what it takes to actually trade.

Yeah.

All all the best man.

All the best.

Before going to real trades, it's important to understand what a GTT order is.

So, let's understand this in detail.

For intraday trading we can use MIS orders which are intraday orders to place stop loss and targets,

but since our trading system is not intraday, but a positional one,

we'll be using something called a GTT order to place an order,

and that will help us place a stop loss and targets for all our stock holdings.

So let's place a GTT order for Asian Paints, which is already in my holdings tab here.

As you can see my average cost was 2570.

Let's go to the order's tab, click on the GTT tab here and then click on a new GTT and search for Asian Paints.

Now click on create GTT and choose the transaction type as sell.

Now if you want to just place a stop loss, then your trigger type will be single.

But if you want to place a stop loss, and the target choose OCO.

So my average price was 2,570.

So let's say I want a stop loss at 2,000 rupees, my quantity was 4, and my limit price is nothing but 2,000.

Then let's say my target is 4,000 and my quantity will remain 4 and the limit price will also be 4,000.

As soon as I click on Place, there you go.

This is my stop loss 2000 and 4000 is my target.

Now that's how you can place a GTT order for your stock holdings.

Also find the link of stock scanner, and the portfolio risk management calculator in the description below

to scan the stocks every Friday at 3pm.

So as you can see in the scanner we have got a list of three stocks that have made a new 52 week high.

The first stock is Cadila HC, second is Cipla and the third is Dabur.

So I've loded all three stocks in my watchlist here.

As you can see the weekly chart of Cadila Healthcare, it has made a new 52 week high.

The same goes for Cipla and the same goes for Dabur as well.

So what I'll do now, I'll go to my portfolio management calculator,

and I see what quantity do I need to buy, according to my starting capital.

So if my starting capital is one 1,00,000 and I can invest 5000 per stock,

so the quantity will be 5000 divided by its current market price which will be nearly 10 in case of Cadila.

So I'll simply place the buy orders here on the Kite market watch now.

I click on buy then regular, and then check long term CNC.

I'll enter quantity of 10 and I'll simply place a market order, and there you go, we've placed our first trade.

Now, I'll go back to the sheet.

Check the quantities for both the stocks and place buy market orders for both of them.

Now you can see here that all these stocks are added to my position's tab here,

and you will be able to see all these positions in the holding's tab, after two days.

We'll also have to place stop loss and target for each stock using something called GTT order.

If you want to learn more about GTT orders and other complex order types,

check out the Basics of Trading course on LearnApp by Prateek himself.

So let's update the entry price for all three stocks in our portfolio management calculator

to get our stop loss and target all three stocks.

So as you can see here, the stop loss is 408.35.

So let's place the GTT order for Cadila Healthcare.

We will click on the create GTT then select sell, and then OCO,

our stop loss is 408.35 and our quantity was 10, and our target is 845.85,

and we'll simply place these orders, and our stop loss and target will be placed.

And as you can see here, GTT has been created for Cadila Healthcare.

Similarly, we will create GTT orders for Dabur and Cipla as well.

Now all our stop losses and targets are placed for each stock.

So every Friday, you just need to check if your stop loss has changed or not using this portfolio management calculator.

If it's changed, then just update the stop loss value of your GTT order.

So let's see how it performs this week.

Today is 23rd of April and the last time,

if you remember, we invested in three particular stocks Cadila Healthcare, Cipla, and Dabur.

So let's review our portfolio now.

Cadila Healthcare stock price has increased from an average buying price of 528 to 568.

That's a good up move.

Cipla has almost remained near our buying cost, while Dabur has decreased by about 15 to 16 points.

So net on net we are making some profit.

So now let's see which stocks have come to our radar today.

We've got only one stock today, Wipro.

So for Wipro, stop losses 397.75 and target is 764.

According to our risk management rules, the quantity that we need to buy is 10.

So we'll simply buy this for the long term and place the market order.

Thus we bought 10 shares of Wipro 478 each.

Let's go back to our portfolio management calculator and update our entry price here as 478,

and now we place our GTT order for stop loss and target.

So simply go to orders,

and then go to GTT, then new GTT, and search for Wipro, and then click on Create GTT,

then select all, then select OCO our quantity is 10.

Let's enter a stop loss which is 397.75, and our target which is 764.8.

That's it, we'll place a GTT order, and it's been placed.

So whenever these triggers are hit our stop loss or our target will be hit,

and we'll be out of the position in that particular stock.

So right now we've invested in four stocks Cadila Healthcare, Cipla, Dabur and Wipro.

So yet again today is Friday and it's already 3pm, today's 30th of April, and let's review our portfolio now.

So we have four stocks Cipla which is standing at 2% loss, Dabur which is standing at 6% loss,

Wipro which is standing at 3% profit, and Cadila Healthcare which is the best performing stock at around 8% profit.

So let's see which of our stocks have come in our scanner this week to be added to our portfolio.

So right here I have a chart of Divis Lab, as you can see on a weekly chart it's been a new 52 week high,

and so we'll invest in the stock.

Similarly we have Vedanta limited, NMDC, Tata Steel and JSW Steel.

So let's just start taking positions like we did in the previous two weeks.

So all the orders are now placed for these 5 stocks.

Let's now check our portfolio returns using the portfolio management calculator.

So total of 9 stocks that means around 45,000 rupees have been invested in all our stocks now,

it's around 44,157 and we have made around 0.255 percent return.

That's around 250 rupees on our starting capital of one lakh.

So let's see how the portfolio performs in the days to come.

All right, let's see how our portfolio is performing.

So as you can see here Divis lab is at around 0.7% of loss,

Cipla is around -5% loss and Dabur is at around minus 7% loss.

So out of 9 stocks 3 stocks at a loss while 6 stocks are in profit.

Today we've got around 8 stocks on our radar.

So the first position we'll be taking is Adani Trans, so let's buy Adani transport,

and all of the stocks mentioned in the sheet.

So now we've placed all our stop loss and target orders, and here are all holdings,

and here are our current today's orders.

So all of them have been placed.

All right, so we're now in our 5th week of this trading strategy.

We started off with 3 stocks in the 1st week, our portfolio size has now increased to 17 stocks.

Let's first check our folio’s performing.

So right now we're in a profit in almost 9 stocks out of 17 stocks and the other stocks are in some loss.

So this is a portfolio right here, where our net percentage return of 2.8% on a capital of one lakh rupees.

So that's a good thing, the system has performed decently well in the last 5 weeks.

Today we have 3 stocks in our scanner, and let's place the orders for all of them.

So all the orders are placed and now we have a portfolio of 20 stocks.

This is the maximum size of our portfolio.

Now we just need to keep checking if any of our stop loss or target has hit or not.

If it has hit we have to then check our scanner and add a new stock to a portfolio.

You can do the same way that I did and that too with the same application called Kite,

just open an account using the link below and if you want to analyze or screen your stocks according to your needs,

check out ticker tape.

Hope you found this entire series useful.

The entire point is very simple.

When I started to trade, there was just no resource available,

and we wanted to create a place where people could just learn this for no cost,

and hopefully more people understand investing and money in general,

because this is not taught in school, I don't know why.

Hope that changes in the future.

But anyway, we had a few points to discuss over here so you understand the system a little better.

So what I did was I wrote down a bunch of points and I'm going to read them for you,

so you understand the system a little better.

The first one is that this strategy is only a long only investing strategy.

So this means that the returns of the strategy will be very much in line with the market performance,

and the last five weeks the markets were up, so of course the strategy did really well.

So don't expect the same results to happen when you trade,

it could be a loss, so don't assume that you will get similar returns in such a short time period,

when you start with this strategy.

We were just following the strategy and we would have published it, even if the results were losses.

We were just lucky that the markets were actually moving up.

What you should expect is that there will be times,

when all your trades will hit a stop loss, and you will see your capital decreasing.

This is normal, and it is what's supposed to happen.

In the short term market returns are completely random, but in the long term, they give decent returns.

So even if you're trading, you still have to be patient, short term returns are pretty random.

Long term returns are a little more predictable, so you have to give it time.

All systems make profits and losses.

All you have to make sure is when the loss happens it's a small one, but losses are a part of your life now.

Are we here for the final quiz of the series?

You are correct.

This is the final quiz.

I'm ready, I'm ready, I'm ready.

So, what did we learn from the last few weeks of trading with a strategy

and how is it different from your earlier trading experience?

Okay, so I think the one major difference is that earlier I used to be like a discretionary trader,

I would trade based on whatever my feelings were on that particular day whatever my gut would say,

you know, I didn't have a system in place, right.

So, earlier when I should trade, you know drawdowns would make me really upset

and get greedy and I would have to be with all these emotions,

and now I have a lot more stoic, now I'm a lot more in control,

because I have a trading system in place thanks to you.

So now whenever I make too much of a profit, I'm in control.

Whenever I make a loss, I'm in control, I don't feel that bad.

I know that there are certain rules and strategy that we're following.

So I know that you know a drawdown is not a bad thing, having a loss is not a bad thing

and having a profit is not a great thing.

Just follow the system.

I know I have a stop loss in place, I know what my risk is, I know what my reward is,

I know exactly what's going to happen, and I don't let news bother me anymore.

That's amazing.

I'm so proud.

This is so proud moment.

But I think you're better more precisely as a trader now which is pretty cool.

Yeah, I think it’s the trader mindset, which is to just keep calm and carry on.

That makes sense.

One question though, let's suppose you're trading your portfolio, it's 20% up,

and this bad news comes out for these few stocks, and you know, in you gut that the market is gonna tank tomorrow.

Yes.

How you gonna do?

Oh, I have to do nothing, I have a system in place right.

I have a system in place so I don't need to react to news, I don't need to react to anything,

either when there's a stop loss there so I know what my risk is, I know what my max drawdown is.

So why do I have to worry, we backtested the system, we know the system exits.

So just, just trust the system and keep going I'm not gonna sell, I'm not gonna do anything particular based on the news.

Great Tanmay, you passed a test with flying colors.

Yeah...

All right, so the last time we went on a zoom call Prateek.

Yeah.

We ended up making this whole basics of trading course.

Right, we're on a zoom call once again.

Does this mean we're going to make another course?

I don't know man what do you think, what do the people think?

So I have an idea.

Okay.

I think we've learned how to trade stocks or at least the basics of how stocks work.

Right.

And I think anyone who knows the basics of how you can trade stocks should also learn how to trade crypto.

So maybe the next course can be basics of crypto trading?

Can we do a course on that?

Do you guys want to course on that let us know in the comment section

and if there are enough comments saying yes Prateek Sir, let's do it.

We'll make it happen.

This is a damn good example bro.

I am Genius.