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The Equitymaster Research Digest

We're on a Hat-Trick...Three Winners in a Row
Feb 20, 2017

  • 10.77% in four days
  • A Strategy that could potentially amplify profits four to five times
  • Boosting profits in 2017

We started 2017 on an excellent note with the Equitymaster Conference. And Swing Trader subscribers started the year with high spirits...quite literally.

Our first winner of 2017 was India's largest spirits maker - United Spirits. We booked a solid profit of 13.29% in just twelve days.

United Spirits: Our first winner for 2017
United Spirits: Our first winner for 2017 

Our second winner of 2017 was one of India's largest cement manufacturers - Ambuja Cement. We booked a profit of 8.8% in twenty days.

Ambuja Cement: Our second winner for 2017
Ambuja Cement: Our second winner for 2017 

We closed our third winning trade (requires subscription) in a row a few days back to complete the hat-trick. This time our subscribers booked a solid 10.77% in just four days in one of Mumbai's largest listed real estate developers - HDIL.

HDIL: Our third winner for 2017
HDIL: Our third winner for 2017 

HDIL had topped out at 108 in July 2016. It slipped lower gradually until October 2016. But the fall intensified in November. Finally, it touched a low of 54, which was 50% below its July high.

The stock traded in a range and even bounced near 64 levels by December. However, it didn't hold there for too long and slipped one more time. It hit a lower low of 52 in the last week of December.

But the daily RSI didn't follow suit and hit a higher low. Eventually the stock bounced from the lows and was consolidating between the range of 60 and 64 over the last few days. HDIL broke out of this range on 1 February with very high volumes. It seemed like it was ready for a smart recovery.

Thus, I recommended buying the stock at or below 65 with a target of 10.77% and a stoploss of -4.62%. It went live on the next day at 65 and ended the week flat. But on 6 February, it opened with a gap up and raced towards our target price of 72 in the first half of the day. This was one of our fastest winners and with it we completed a hat-trick.

A Strategy That Could Potentially Amplify Profits Four to Five Times

HDIL isn't the only trade that we closed for a profit in the last few days. We also closed our trade in India's largest forging company - Bharat Forge - for a profit of 10.53% in 34 days. Yes, we held this trade longer than usual. But we don't mind holding if we're confident in the upmove.

Identifying Bigger Opportunities
Bhrat: Our third winner for 2017 

Bharat Forge was consolidating in an inverse head and shoulder pattern for more than a year.

Bulls tried to breakout above the neckline resistance of 970 in December 2016 but couldn't succeed. The stock witnessed a small dip closer to the rising trendline drawn from June 2016 lows.

On 11 January, it ended the session with gains of more than 2% with rising volumes. The daily RSI was also in the bullish territory.

Thus, I recommended buying the stock at or below 950 with a target of 10.53% and a stoploss of -5.26%. The stock went live on the next day at our recommended price of 950 but stayed flat for the whole of January.

It broke out above the resistance level of 970 on 1 February and rallied smartly up to our target price of 1,050 by 15 February. So we booked 10% profits in this trade...which is quite good.

But what if I told you there's a way to book bigger profits in the same stock?

What if, instead of entering at 950, you entered at 750 or 725? What if there were a process that could identify bigger opportunities in the same stock?

Would you want to know more about it?

Boosting Profits in 2017

Don't worry! I reveal the entire strategy in an easy-to-read, jargon-free report - How to Boost Trading Profits in Four Easy Steps.

This strategy is so simple that even a person with no trading experience can understand and follow it.

I am so confident that, with this report, you will be able to easily identify opportunities to boost your profits four to five times in almost any stock.

Download this special report right away.

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