Burnt my hands in derivatives

[rajeshn2007]

Earlier, I have been investing in cash, keeping the stocks for few months and then selling those as and when I needed cash. Recently, I got pulled into this business where I thought I can make some quick bucks by following one of the blogs calls. I observed his blog for few days before taking a plunge. I started with one NF lot without SL (my mistake) in Aug but that never reached at the price of my call, so booked loss of 350 points at expiry. To be honest, there were 2-3 intraday calls which went right along with 4-5 missed calls, but the profit was well eaten by those 4-5 missed calls.

Then I got into Sept series and shorted a NF lot at 4590 in first week itself (i think) and kept on buying some put calls as everybody I read on MMB forum was bearish. Well this turned out to be more disasterous and today I had to cover NF lot at 4985 as I could not take this further as my remaining margin does not allow me to do so, making loss of approx 400 points this time. My puts which were bought for total of 550 points (total) has a remaning value of 80 points today, so total loss so far is 1220 points for last 45 days.

What I have learnt so far:
a. NF Future - only for intraday.
b. Intraday without a Stoploss is a crime.
c. Dont follow any blog.

I would better off not to do intraday but surely I would like to cover my losses. Could you share your wisdom and experience which I can use to cover my losses ?

Regards

Willy

Hi,
Avoid futures/derivatives. Invest (as you have been doing in cash market) to make money.

 

[simu2004]

wrong.....the best of this stuff that a trader or invstr can do & the most wonderful thing i like from around the world from fin mkts is POSITIONAL TRADE.....
now provided> u have a scientific stoploss & lastly......following this line STRICTLY
positions can b kept open for 365 days round the year in any mkt condition.

But one must have guts to keep the losses for so long...I had really a difficult time keeping my NF lots till expiry....taking your positions home (which are constantly going in -ve) is a big headache and I was not able to concentrate on other things. So it depends on an individual.

Anyways, I have started reading 'Trading for Living'. I would not take a plunge till I understand some patterns and trends.

 

[pkgmtnl]

Oh, its gud that U have realized the mistake of acting on the calls of so called stock analysts,

buddy there is a say in market that anybody who lost everything in market, finally become stock analyst.

I did the same mistake, Jan08 fall took big chunk,
thereafter i learned technical s, tried to judge how market moves,

The intraday and deliveries analysis is totally different, so invest in stock self analysed on EoD charts, after learing technical basics, u start paper trading, its better to devote sometime in learning rather then loosing wat u are left with...

Its never an end.... May be other few friends who look for calls may also learn from it..........

Download this
http://www.4shared.com/file/50888521/4377fdad/Martin_J_Pring_-_Candlestikcs_Explained_CD.html?s=1
Its martin pring's candle stick tutorials, will be helpful for U

 

[natrium]

Even for an experienced trader, the probabilty of sucess is as follows:

1. Equity Shares - 50 %
2. Options trading - Directional Call & Puts - 30 %
- Short Verticals and Iron Condors - 65 %
- Calendars - 40 %
3. Futures - 15 %

Options is a leveraged product, and Futures are even more leverage produced. While rewards may look juicy, the trade off is the probability. Futures are a HIGH RISK - HIGH REWARD product.

 

[SwingKing]

Know yourself first before getting into derivatives....

If one can't succeed in Equities, he/she cannot succeed in Derivatives.

It's like learning to speak a language without knowing the alphabets.

Only exceptional people can do well in derivatives in one go.

For Rest, equities is the best option.

Contact AW10 user for more insight into derivative trades.

Tc.

 

[TraderRavi]

you seem to be a beginer. Don't worry. I too was like you when i began trading. At that time, i had burnt not only my fingers but also my a**. :d

not only intraday, but any trade without stoploss is a crime.

Donot follow any one else's call. This is restricted not only to blog calls but all types of "free" as well as "paid" calls. Why, because you donot know on what basis the call is made and even less you know is when to get out.

Take your time. Learn how to trade.

............:lol: