Escape's Options Trading Diary - Phase 2

[augubhai]

Escape,

I am moving more and more towards scalping, but I am seeing that you are moving the opposite direction and holding positions overnight. Sometime last year, I used to consider you a a scalper, and myself to be bit more sedate. i have no clue about which is the right direction...

Anyway, the thing that I find scary with holding overnight position (options overnight positions are not that scary) is that a single gap against us can put us out of the market. In day trading there we have much more control over the risk, if the SL are in place.

 

[trdstudent]

....... Sometime last year, I used to consider you a a scalper, and myself to be bit more sedate. i have no clue about which is the right direction...

Anyway, the thing that I find scary with holding overnight position (options overnight positions are not that scary) is that a single gap against us can put us out of the market. In day trading there we have much more control over the risk, if the SL are in place.

So wht u sggest ? Strngl ? May be then loss can be under control but ....

 

[augubhai]

So wht u sggest ? Strngl ? May be then loss can be under control but ....

I am not suggesting anything. I just said that there is a bigger risk involved in holding overnight, than in intraday trading.

 

[escape]

Why didn't exite ? Bot some 6000PE at avrg 82 as future getting resist at 5972/64 band and exite at 99 . Yestrdday bot 6000CE at 33.85 and exite at 53 to day morning . Now again thinking of buying some 6000CE if this crrnt level holds .



.....and gap is closed .

Trdstudent, Today market open above yesterday's closing, and I was hoping it will break resistance of 5976. So didn't exited at break-even point. Still it is on hold.

You are really doing well

 

[escape]

Escape,

I am moving more and more towards scalping, but I am seeing that you are moving the opposite direction and holding positions overnight. Sometime last year, I used to consider you a a scalper, and myself to be bit more sedate. i have no clue about which is the right direction...

Anyway, the thing that I find scary with holding overnight position (options overnight positions are not that scary) is that a single gap against us can put us out of the market. In day trading there we have much more control over the risk, if the SL are in place.

Dear Augubhai, this is one of overnight positions. Today I was supposed to come out of it. But as market started with positive outlook, so I thought it may go above my break-even point. So didn't squared-off. Don't know if this is mistake. Time will let us know.

I completely agree with you, no doubt, keeping naked overnight position is very risky.

 

[escape]

Didn't traded yesterday. All open positions remains as it is.

 

[trdstudent]

Didn't traded yesterday. All open positions remains as it is.

so not trding even today ? How big is the loss ? Why don't u try to exite with a pull up and then strt clean ? That way may be u can use the money more effectivelly ?

 

[escape]

so not trding even today ? How big is the loss ? Why don't u try to exite with a pull up and then strt clean ? That way may be u can use the money more effectivelly ?

Today, I did averaging. Now current loss is around 20 points.
NIFTY is near close to it's support level, so mostly possibly next I expect there will be some upside move.

 

[augubhai]

Today, I did averaging. Now current loss is around 20 points.
NIFTY is near close to it's support level, so mostly possibly next I expect there will be some upside move.

I guess you already know that's dangerous.... if u r averaging just bcos you are in a loss.

but it's ok, if you are buying because you would have bought per your trading method, even if you did not carry the position. But since you are already holding the position, haven't you already exceeded the position size that you would have taken per your method?

I am not advising you as an expert. I am only a been-there-done-that-and-still-repeating-mistakes person

 

[escape]

I guess you already know that's dangerous.... if u r averaging just bcos you are in a loss.

but it's ok, if you are buying because you would have bought per your trading method, even if you did not carry the position. But since you are already holding the position, haven't you already exceeded the position size that you would have taken per your method?

I am not advising you as an expert. I am only a been-there-done-that-and-still-repeating-mistakes person

Augubhai, What you are saying is absolutely correct. Even I always against averaging specially in loosing trade.

Still I did averaging today, as NIFTY is close to previous support level. So took risk. Let's see result next week.