Escape's Options Trading Diary - Phase 2

[escape]

Added two more lots @ 37.40.

So holding 4 lots @ 37.80, SL placed at 34.75, CMP 37.00

SL hit @ 34.75, loss of 3.05 points, less brokerages.

 

[escape]

SL hit @ 34.75, loss of 3.05 points, less brokerages.

It just hit my SL and took you turn :annoyed:

 

[escape]

Bought 4 lots of Nifty 28Mar2013 CE 5800 @ 35.75, SL placed @ 32.25, CMP 35.90

 

[appy050]

Thanks Escape!

what is the reason for telling this statement. cant i move SL both ways based on market direction.
"Make sure move SL in one direction only. "

Appy050, yes initial SL are normally below the Buy rate (in case of Long), once it moves certain level up, you can trail it up. Make sure move SL in one direction only.

 

[trdstudent]

Bought 4 lots of Nifty 28Mar2013 CE 5800 @ 35.75, SL placed @ 32.25, CMP 35.90

So u r holding this position overnight ?

 

[escape]

So u r holding this position overnight ?

Yes trdstudent, I'm holding it for overnight. One reason being NIFTY didn't able to break Thursday's Low and today ending day with Doji candle.

 

[escape]

Thanks Escape!

what is the reason for telling this statement. cant i move SL both ways based on market direction.
"Make sure move SL in one direction only. "

Dear Appy050, SL is to protect us from surprise move against our trade. Let's us take example:

1. Bought 2 lots of Nifty 28Mar2013 CE 5800 @ 38.15, SL placed @ 34.25, CMP 38.40: Here I bought NIFTY CE @ 38.15. I bought this assuming market will go up and chances of ending is positive results are higher. I put SL @ 34.25 (so I'm accepting risk of 4.15 points).

2. In case if NIFTY CE CMP goes up and is now, say 42.00, I may have moved my SL to cost i.e. 38.40. So I'm always below current CMP and moving in one direction (here higher side).

3. Now assume, NIFTY CE CMP decreases to 39, still I'll keep my SL to 38.40 and will not move it further down. Exception: Unless there is some strong sign that it it is kind of spike and will move up further or sometime, you buy additional lots and put SL little below current SL, but not below your initial SL. Try avoiding this Exception, as it is not a good idea.

Hope, this clarifies your concern.

 

[escape]

Bought 4 lots of Nifty 28Mar2013 CE 5800 @ 35.75, SL placed @ 32.25, CMP 35.90

Exited all positions today @ 71.90, profit of 36.15 points, less brokerages.

 

[escape]

Bought 3 lots of Nifty 28Mar2013 CE 5800 @ 80.60, SL placed @ 77.60, CMP 80.45

 

[escape]

Bought 3 lots of Nifty 28Mar2013 CE 5800 @ 80.60, SL placed @ 77.60, CMP 80.45

SL hit @ 77.60, loss of 3.00 points, less brokerages.