My Daily Options Trading Diary

[ss16021981]

findvikas ur Email id

 

[findvikas]

yes findvikas

findvikas at gmail... say thank when you see it so that i can remove it

 

[MurAtt]

What all open positions do you have as of today?

 

[findvikas]

just 10k cash .... bought NIFTY 4700put for oct... at 74... ltp = 77

 

[findvikas]

bought 1 lot of suzlon oct 70put at 0.65

 

[lazytrader]

bought 1 lot of suzlon oct 70put at 0.65

Why do you still go for so far OTM option? Why?
Far OTM lose value faster if the stock doesn't move besides there is no chance suzlon will go that far without a market going down as well.

 

[MurAtt]

I would have preferred Suzlon 100CA Oct series at around 2.8.

 

[AW10]

Till 23/09/2009

As you can see I have lost my entire capital, and closed all my positions today. :annoyed:

This was a very good learning experience, apart from the pain of losing money. Here are my key take away.

1. Never average down, or never bet on a losing deal.
   
2. Not everyday is a good day to trade, when its not... stay out you stupid.
   
3. NEVER take naked options positions overnight, cover them by putting hedge or close them by end of day. Reliance is a BIG sucker who sucked it all with their Stake Sale.
   
4. I did not have proper money management, I was just BETTING & BETTING.
   

Conclusion

I am defeated once again, but not out of the battle field.. not yet!

If you fall down just pick yourself up and dust yourself off... and start walking again... soon you will learn to RUN

Vikas,
Probably this was the best post in this thread. And the cream of that is 4 bullet points summarizing what mistakes that you have made.

Dear, loosing trades don't put stamp on our forehead that we are looser. It is part of trading business. We have to learn from our mistakes, which starts with realising that we are making mistakes.
And if one is really serious to make it here, then they will decide practical and implementable action steps and start taking action from next month.

I have been watching the thread but stayed away from commenting as I wasn't convinced with what was going on here. My observation has been almost that you have summarized in those 4 bullet points.
Looking forward for your action plan and action result to implement those 4 learnings. Will contribute wherever I can.

All the best.
You know what, traders drink when they have winning period and they also drink when they have loosing period.
Weeekend is here. so go ahead and drink, eat and comeback fully charged with commitment to improve your trading.

Happy Trading

 

[lazytrader]

[
As you can see I have lost my entire capital, and closed all my positions today. :annoyed:

This was a very good learning experience, apart from the pain of losing money. Here are my key take away.

1. Never average down, or never bet on a losing deal.
   
2. Not everyday is a good day to trade, when its not... stay out you stupid.
   
3. NEVER take naked options positions overnight, cover them by putting hedge or close them by end of day. Reliance is a BIG sucker who sucked it all with their Stake Sale.
   
4. I did not have proper money management, I was just BETTING & BETTING.
   

Conclusion

I am defeated once again, but not out of the battle field.. not yet!

If you fall down just pick yourself up and dust yourself off... and start walking again... soon you will learn to RUN

You have reached an important milestone in a traders journey to success.
How you deal with this one will determine whether you will have more of these or not. Hope all these were not your real trades. Unfortunately the learning that happens on real money paid as fees to the market is of higher quality and remains with you longer than that done with paper trades.

I wasn't able to post this week due to some problem. Anyway, analysis of these trades is very important to understand where you went wrong and how to avoid them so lets set about it...

There are some trades with very small profit Rs.300,600 are these scratch trades? (closed prematurely? If you were not stopped out or reached target and you close a trade at around BE assuming the trade was going to be a loser or the trade was going nowhere then it's a scratch trade and you have to remove them from the analysis). If you have such trades then calculate the avg.win/loss and win% without it and post them here.

 

[AW10]

Why do you still go for so far OTM option? Why?
Far OTM lose value faster if the stock doesn't move besides there is no chance suzlon will go that far without a market going down as well.

Vikas, I agree with LTs comment.
I have observed that you prefer to selecting OTM strikes with directional calls from your chart reading.
You are fairly correct on direction reading.. but u have delayed profit booking (maybe emotion of greed to be watched here).. and and hold on to it.
Just to see that OTM strike has also lost the value equally fast.
So you got to be quick in playing OTM strikes - quick in, quick out.
Rule of the game is different for ITM strikes.

Maybe you would like to address - SELECTION of STRIKE as one of the area.
Another area should be position sizing and exit strategy.

Just a tip, if your mindset is toward playing OTM strike, then u can balance it out with 1 lot ITM + 1 lot OTM on same scrip..Atleast that way you risk will be better managed.
For hedging, I generally use spreads.. you can find a lot about that in my other thread - LOW RISK....

Happy Trading