Escape's Options Trading Diary - Phase 2

[escape]

Bought 2 lots of Nifty 12OCT2012 CE 5600 @ 123.35, SL 119.45, CMP 125.70

SL hit @ 119.35, loss of 4.00 points, less brokerages.

 

[escape]

Here is log as of last session.

Log:
NIFTY 25Oct12 CE 5600.00 (B) 1000 @ 113.66 (S) 1000 @ 117.72 (P/L) +4060.00
NIFTY 25Oct12 PE 5800.00 (B) 400 @ 104.43 (S) 400 @ 100.94 (P/L) -1396.00

Result:
After deducting all charges: Rs. +2382.04

Capital Status (Since September):
Exact Initial Capital: Rs. 45,000/-
Current Ledger balance Rs. 32416.67 (-12583.33 )

Learning/Remark:
Since last few days first few trades are very successful and later half seems like slow disaster. Same was repeated today. Don't know why I'm going wrong in later part of day.

With first few trades, my MTM reached once around 4.6K, but ended day with 2.3K. It will be better for me to avoid trade in second half of day.

Will analyse all trades I took in second half and see what went wrong today.

 

[escape]

Hi All,

I have one query about following chart:

As shown in chart, I have gone Long 1, Long2 with assumption of breakout, and had wrong SL (I should have kept little lower, don't know why I kept that), and finally had loss in this two trade.

Can this trade be done in any other better way?
If I need to ignore this trade, is there any solid reason (as per chart, it seems breakout)?

I'm not using considering Moving Averages to enter trade here.

Regards,
Escape

 

[DanPickUp]

Dear Escape

Let us start the calendar spread now. Let us buy one unit from the 5600 Dec put for 69.00 Rp.

http://i48.tinypic.com/34fe89u.png

Why now? Let us take this simple chart as an example, as we have to start some where. As nothing is perfect in trading, we choose this chart picture to start once with the idea.

http://i48.tinypic.com/nv5s93.png

If we are wrong, we have to find a way out of the situation.

Let us do that beside your regular trading and just keep an eye on it for further purposes. Let it be a paper trade.

Good trading

DanPickUp

 

[DanPickUp]

Hi All,

I have one query about following chart:

As shown in chart, I have gone Long 1, Long2 with assumption of breakout, and had wrong SL (I should have kept little lower, don't know why I kept that), and finally had loss in this two trade.

Can this trade be done in any other better way?
If I need to ignore this trade, is there any solid reason (as per chart, it seems breakout)?

I'm not using considering Moving Averages to enter trade here.

Regards,
Escape

Chance the time frame or at least compare with bigger time frames.

 

[escape]

Dear Escape

Let us start the calendar spread now. Let us buy one unit from the 5600 Dec put for 69.00 Rp.

http://i48.tinypic.com/34fe89u.png

Why now? Let us take this simple chart as an example, as we have to start some where. As nothing is perfect in trading, we choose this chart picture to start once with the idea.

http://i48.tinypic.com/nv5s93.png

If we are wrong, we have to find a way out of the situation.

Good trading

DanPickUp

Hi Dan,

Sure, I will buy tomorrow once market starts.

Also we have 2 more trading days for this months series (Tuesday and Thursday). Indian market will be closed on Wednesday for Dasara festival.

Also I would like to thank you for giving me URL to www.optionseducation.org, it has lots of material (podcasts) for Options:

http://education.optionseducation.org/course/?podcasts=1


Regards,
Escape

 

[DanPickUp]

Oh I see: There are really lots of podcasts. Did not know that as I am not a regular user of that page. Never used it for any education. I am more with Paul Forchone, Joe Ross and John Summa.

 

[escape]

Chance the time frame or at least compare with bigger time frames.

Hi Dan,

I have upload 5 min chart.
It shows Long Upper Shadow, where initially I got stuck. But later it shown support, so I went second Long above it.

My concern is that even if we consider this as failed breakout (I don't think this is failed breakout), how do we minimize loss in such trade.

Regards,
Escape

 

[DanPickUp]

Do we talk now about future trading? If so then I have to tell you that ST is more competent in future trading compare to me. I am an option trader and not a pure future trader.

 

[escape]

Do we talk now about future trading? If so then I have to tell you that ST is more competent in future trading compare to me. I am an option trader and not a pure future trader.

Hi Dan,

That was Options price chart and not futures, this is from my trading platform.

Let's see how Indian market does tomorrow, it seems it may open negative as Dow Jones is trading 75 points down today.

Regards,
Escape.