Escape's Options Trading Diary - Phase 2
Here is log as of last session.
Log:
NIFTY 31Jan13 PE 6100.00 (B) 300 @ 56.25 (S) 300 @ 53.83 (P/L) -484.00
Result:
After deducting all charges: Rs. -505.15
Open Position: NIFTY 31Jan13 PE 6000.00 (B) 1000 @ 24.37, CMP 14.65
Learning/Remark:
Did two mistakes today:
1. Didn't placed SL on 2nd trade, and ended with loss, than expected.
2. I should have sold overnight position and bought it back. Need to learn this skill.
Going forward for trade assuming breakout, have to keep SL little close (may be 5% below buy rate). For remaining trade, will be 10% below buy rate.
Apropos Open Position, carrying bigger risk, will take decision after RBI announcement tomorrow.
Based on current CMP, I'm at loss of around 10K. Still holding this position.
Wondering why should RBI cut interest rate? I'm not economist, still I have questions:
Market is at 2 years high, why it needs boost to move further up and why? Isn't inflation should be bigger concern? :gun2:
At the most, I personally feel, RBI may cut 25 base point, which is already factored in market, so tomorrow most likely market will go down after announcement.
May be I'm biased as I have open position in PUT.
Log:
NIFTY 31Jan13 PE 6100.00 (B) 300 @ 56.25 (S) 300 @ 53.83 (P/L) -484.00
Result:
After deducting all charges: Rs. -505.15
Open Position: NIFTY 31Jan13 PE 6000.00 (B) 1000 @ 24.37, CMP 14.65
Learning/Remark:
Did two mistakes today:
1. Didn't placed SL on 2nd trade, and ended with loss, than expected.
2. I should have sold overnight position and bought it back. Need to learn this skill.
Going forward for trade assuming breakout, have to keep SL little close (may be 5% below buy rate). For remaining trade, will be 10% below buy rate.
Apropos Open Position, carrying bigger risk, will take decision after RBI announcement tomorrow.
Based on current CMP, I'm at loss of around 10K. Still holding this position.
Wondering why should RBI cut interest rate? I'm not economist, still I have questions:
Market is at 2 years high, why it needs boost to move further up and why? Isn't inflation should be bigger concern? :gun2:
At the most, I personally feel, RBI may cut 25 base point, which is already factored in market, so tomorrow most likely market will go down after announcement.
May be I'm biased as I have open position in PUT.
Here is log as of last session.
Log:
NIFTY 31Jan13 PE 6100.00 (B) 300 @ 56.25 (S) 300 @ 53.83 (P/L) -484.00
Result:
After deducting all charges: Rs. -505.15
Open Position: NIFTY 31Jan13 PE 6000.00 (B) 1000 @ 24.37, CMP 14.65
Learning/Remark:
Did two mistakes today:
1. Didn't placed SL on 2nd trade, and ended with loss, than expected.
2. I should have sold overnight position and bought it back. Need to learn this skill.
Going forward for trade assuming breakout, have to keep SL little close (may be 5% below buy rate). For remaining trade, will be 10% below buy rate.
Apropos Open Position, carrying bigger risk, will take decision after RBI announcement tomorrow.
Based on current CMP, I'm at loss of around 10K. Still holding this position.
Wondering why should RBI cut interest rate? I'm not economist, still I have questions:
Market is at 2 years high, why it needs boost to move further up and why? Isn't inflation should be bigger concern? :gun2:
At the most, I personally feel, RBI may cut 25 base point, which is already factored in market, so tomorrow most likely market will go down after announcement.
May be I'm biased as I have open position in PUT.
Log:
NIFTY 31Jan13 PE 6100.00 (B) 300 @ 56.25 (S) 300 @ 53.83 (P/L) -484.00
Result:
After deducting all charges: Rs. -505.15
Open Position: NIFTY 31Jan13 PE 6000.00 (B) 1000 @ 24.37, CMP 14.65
Learning/Remark:
Did two mistakes today:
1. Didn't placed SL on 2nd trade, and ended with loss, than expected.
2. I should have sold overnight position and bought it back. Need to learn this skill.
Going forward for trade assuming breakout, have to keep SL little close (may be 5% below buy rate). For remaining trade, will be 10% below buy rate.
Apropos Open Position, carrying bigger risk, will take decision after RBI announcement tomorrow.
Based on current CMP, I'm at loss of around 10K. Still holding this position.
Wondering why should RBI cut interest rate? I'm not economist, still I have questions:
Market is at 2 years high, why it needs boost to move further up and why? Isn't inflation should be bigger concern? :gun2:
At the most, I personally feel, RBI may cut 25 base point, which is already factored in market, so tomorrow most likely market will go down after announcement.
May be I'm biased as I have open position in PUT.
I read last 2 pages of your thread....let me share some line...which I have, and written by some one..
An option is a bet that a specific stock, index, or future will reach or
exceed a specific price within a specific time. Please stop and reread
that sentence. Notice that the word specific occurs in it three times. You
must choose the right stock, predict the extent of its move, and forecast
how fast itll get there. You must make three choicesif youre
wrong on just one, youll lose money.
When you buy an option, you have to jump through three hoops in
a single leap. You have to be right on the stock or the future, right on
its move, and right on its timing. Ever tried tossing a ball through three
rings at an amusement park? This triple complexity makes buying options
a deadly game.
Dear Trader J, Thank you for going thorough tread and sharing those lines. Appreciate for those lines.
While analyzing my trades for last 2-3 days and specifically today's huge loss, I was thinking where am I'm going wrong. First thing I can think of is "timing". I have predicted too early for reversal.
While analyzing my trades for last 2-3 days and specifically today's huge loss, I was thinking where am I'm going wrong. First thing I can think of is "timing". I have predicted too early for reversal.
May be I'm biased as I have open position in PUT.
If you anticipated no rate cut and predicted the market will fall post RBI policy, you could have bought the PE on same day itself before 11AM.
And still you are carrying open position, which i guess is another risk. Try to sell them asap if market does not show any sign of falling. I hope market will fall so that atleast you can sell them at breakeven/ at profit
Best of luck :thumb:
Here is log as of last session.
Log:
NIFTY 31Jan13 PE 6000.00 (Overnight) 1000 @ 24.37 (S) 850 @ 12.35 (P/L) -484.00
NIFTY 31Jan13 PE 6000.00 (B) 1000 @ 13.05
Result:
After deducting all charges: Rs. -10238.80
Open Position: NIFTY 31Jan13 PE 6000.00 (B) 1150 @ 14.55, CMP 10.75
Learning/Remark:
This is worst performance. Overall I'm in loss for this month.
Trying to analyze what went wrong:
My first mistake seems to be "timing". I have predicted too early for reversal. I failed on "timing". I must wait little longer for confirmation of trend and enter into trade.
My second mistake during trading hour is assumption that "this is last bus, let's catch it and at whatever cost". This puts me in wrong trade. I have done this mistake today.
My third mistake seems my patience level when my trade is going in other direction. I'm little more patience if market is going against me. I must learn to EXIT immediately and if required re-enter later on. This seems to be bigger challenge to overcome.
Need to keep track of these and earlier mistakes and hope not to repeat this future.
Log:
NIFTY 31Jan13 PE 6000.00 (Overnight) 1000 @ 24.37 (S) 850 @ 12.35 (P/L) -484.00
NIFTY 31Jan13 PE 6000.00 (B) 1000 @ 13.05
Result:
After deducting all charges: Rs. -10238.80
Open Position: NIFTY 31Jan13 PE 6000.00 (B) 1150 @ 14.55, CMP 10.75
Learning/Remark:
This is worst performance. Overall I'm in loss for this month.
Trying to analyze what went wrong:
My first mistake seems to be "timing". I have predicted too early for reversal. I failed on "timing". I must wait little longer for confirmation of trend and enter into trade.
My second mistake during trading hour is assumption that "this is last bus, let's catch it and at whatever cost". This puts me in wrong trade. I have done this mistake today.
My third mistake seems my patience level when my trade is going in other direction. I'm little more patience if market is going against me. I must learn to EXIT immediately and if required re-enter later on. This seems to be bigger challenge to overcome.
Need to keep track of these and earlier mistakes and hope not to repeat this future.
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