My Race against fixed deposit

[TradeJoker]

interesting

Hello People from Traderji Land, Warm greetings from Monkeytrading...

Welcome to the first weekly update

So before we start a new venture it is a matter to common sense we should remember Lord ganesha, But I did not realize and paid heavily for that..

1st trade: I thought Auropharma will break 540 barrier and move up and above...
Bought 540 CE at 26 but it went up only in my dreams, there were 2 divergences on the MACD which clearly indicate the upmove is feeble, but somehow my gut feeling told me it will go up and Ashwini gujaral on etnow added fuel to the fire by saying it should resume up trend to reach 600..this helped me a lot in terms of not putting a stop loss of any sorts..

Hence sold on second day with a bruised ego at 16.2.
So loss of 19600 ....

Besides I did another trade in Yes Bank it broke Resistance of 380 and was flying high, but then MMS, Rajmata Sonia Gandhi and Kahul Baba appeared on TV and the market frowned for a while I took an entry in the mean while and sold at the end of the day.

Bought Yesbank 420 April call at 13.9 and sold at 16.45.
So profit of 2550.

 

[Monkeytrading]

3rd trade : Now this one was a roller coaster ride..

There was divergence in the charts for Larsen and hence it should go down and it indeed went down!!!! Besides Voltas is a distant cousin of Larsen and with higher lot size, as if I traded more then 1 lot of LT somebody would kill me....:annoyed:

Bought Voltas Apr 155 Put at 8 and the market was showing strong and sharp upmove with volumes after every few mins. Hence i placed stops at the high of the day and it was taken out comfortably. Booked out at 6.3.

So a loss of 6800.

So Voltas has clearly reversed the trend and and it was time to go long instead.

Bought 160 Call at 6.7 and the stock zoomed, it sustained comfortable above 160, I wanted to book out at 9.7 but that price came only once and I missed it. besides the market closed only trying to go up even further. Not only did Voltas covered the previous black candle but also tested the highs of the day before. Hence, I am ok having this position open. Besides the theta only kicks in significantly only in last 20 days. So I hope to close out around 10.7 on Monday.

Also the other trade..!!! Now if Voltas is not going down the distant cousin LT also should not do so right? there were 2 options LT was at 1274 and was scaling now highs very slowly and there was Bank of India at 220, it was already up a lot.

So bought LT April 1300 call at 40 and booked out at the end at 45.:clap:

Profit of 2500

Meanwhile Bank of india closed at 230..!!! it was a freak rally

After loosing 20K in Auro I learned a thing or 2 about stop loss.

In Voltas I placed Stop at 5.7 and at 35 in LT just after my order was executed.

Here we stand at 25,368.53 in cash and 36800 in market, in total 62168.53.

A loss of -12831.47 in total. The Fixed deposit will hit first interest at end of 3 months.. I aim to reach back to 75K by then.

 

[Monkeytrading]

Hello People Welcome again to the weekly update... Greetings from Monkey trading

It is the pious week of Navratri and for the first time in my life I am also observing the fast for 9 days. And trust me it is very very difficult to stay hungry///// But somehow I do not want to quit I will go the distance this time.

4th Trade:

SO voltas was not moving as per expectations and I did not have guts to hold on to such a huge positions so booked out at 9.2.

Arvind Limited went up big time and it was staying there was not going up or Down, the stock just broke out of 2 days of consolidation so bought ARVIND 24 APR 2014 180 [email protected]. It did not do much even for rest of the day so carried forward the position.

Bank of India, I missed the whole rally, I was so disappointed but the stock did come down in the afternoon and I pounced at the opportunity... but BOI does not have a very good history of reverse trades it goes up it goes all day, if down remains down...got a small cut in the hand catching a falling knife. Lost 6900 as I preferred to book out...BANKINDIA 24 APR 2014 230 CALL @15.10 to 11.65

Meanwhile Tata steel was moving from strength to strength... but market was not very supportive and was coming down a bit every time that happened. Resistance at 393 was broken and the stock is now on its way to 426. Bought TATASTEEL 24 APR 2014 390 [email protected] and exit at 20.3

So profit of 3150...

 

[Monkeytrading]

5th trade:

If anything could have gone wrong it went wrong on this day... I have been waiting for centuries for Auropharma to cross 545 and yes this was the day when it happened... Bought AUROPHARMA 24 APR 2014 570 [email protected].

But I had to leave the trading screen and take mom for Darshan at a far away temple, auro has not been very kind to be in the past, I thought of putting a stop loss at 12 and let the trade take its own course, but again Voltas gave a very smart upmove, the stock in which I did make some money, so I preferred in over auro, booked out at cost and entered VOLTAS 24 APR 2014 165 [email protected].

Well... when I was back the auro call was around 23 and Voltas stuck at 5 point something...!!!!!!

Besides my beloved Bank of india also gave some sort of break out and I bought BANKINDIA 24 APR 2014 250 [email protected] call doubled to 7.2 in a matter of minutes.!!!!!but I was too greedy... wanted to ride on my successful trade and make most of it!!!!!

Jai mata di,,,,

 

[Monkeytrading]

6th Trade:

So the stage was set, Arvind call was around 8.4 and yesterday it made a high of 9.35, Voltas around 6.5 and BOI around 7. Can you imagine I reached 75K that day itself....But you know the Indian Market went up for 10 Days in a row.. So if Voltas reaches 10, arvind does same and BOI also goes to 10 we are done with the task 1!!! I would have reached 1Lakh..:clap:

Was I asking too much for the market? Only once in the history of share market of India this has happened and here I was having all my capital invested and hoping for the rally to continue.

Well...well..vel......roses are red and Violets are blue..God please take me with you..!!!!!! :rofl:

Nothing happened as I thought, had lost patience with Arvind so helped the option form a new low by booking out at 6.5, BOI and Voltas were just doing OK...not loosing out totally despite the market going further low..

Took a mad trade by buying VOLTAS 24 APR 2014 165 CALL again for 6.5, thinking it will bounce back with the market.. But yes the market did bounce back but Voltas did not,, so Booked out that intraday position at cost.

 

[Monkeytrading]

7th Trade..::

Guys all boats were sinking nothing to be hopeful about, but whenever a option looks to form a new low I am always there to help.. booked out of BOI @4.8.. From 7.2 to 4.8 so should I call it a profit of 2K or loss of 5K My obsession with Voltas was also over and I quit at 5.5 loss of 4200

Now, the markets were looking to go down so be it!!! I will short now, DLF gave a negative crossover on the daily charts yesterday and I wanted to short it, but somehow the stock was not going down, and instead was making new highs..somewhere on traderji I read price is the best indicator and we should follow price above any other indicator, so bought this one, DLF 24 APR 2014 170 CALL 10.70 and quit at 12.30 so profit of 3200.

Besides the Modi stock, Adani enterprise had started a fresh upmove after 1 day halt with strong volumes...bought ADANIENT 24 APR 2014 370 CALL @17 and quit at 18.35 profit of 2700:thumb:

Well both the stocks went on to end at much higher levels but I did not care, before I started the trade, I went back to my TJ dairy and saw how much ledger balance did I post last.. I put it in excel and checked how much I need to make to atleast reach that much!!!!! It was more of a face saver trade...

SO the ledger balance ends at 63,467.25 for the week, a slight improvement from last week.. I am too disappointed with myself to set a target for the next week.

Last week was all about STOPLOSS and this week was all about GREED or PROFITBOOKING..

 

[Monkeytrading]

Hmmmmm.... so what to do next... Arvind can be bought above 183, BOI is still a buy if BNF can sustain above 12650 Voltas can help on the short side it NF breaks 6650..

Modi stock adani can do anything from here, DLF I will watch what happens I entered it because HDIL and IRB were also up HDIL was at 6% and ended 16% up...

Guys we are here in a uncharted territory...I have no experience in trading during elections ... before there were hardly 40 stocks that traded more then 500 contracts in one day, but the day I bought arvind, that single contract of call option traded 600 contracts...!!!!!

Good we are having more depth to the markets.. because of this you will get a better price when your trade goes wrong and you wish to stop out, but after 3 pm price losses relevance and writers just get desperate.. Hope you enjoyed the ride Signing off now...Goodbye and Happy weekend,,,,

 

[comm4300]

Hmmmmm.... so what to do next... Arvind can be bought above 183, BOI is still a buy if BNF can sustain above 12650 Voltas can help on the short side it NF breaks 6650..

Modi stock adani can do anything from here, DLF I will watch what happens I entered it because HDIL and IRB were also up HDIL was at 6% and ended 16% up...

Guys we are here in a uncharted territory...I have no experience in trading during elections ... before there were hardly 40 stocks that traded more then 500 contracts in one day, but the day I bought arvind, that single contract of call option traded 600 contracts...!!!!!

Good we are having more depth to the markets.. because of this you will get a better price when your trade goes wrong and you wish to stop out, but after 3 pm price losses relevance and writers just get desperate.. Hope you enjoyed the ride Signing off now...Goodbye and Happy weekend,,,,

election time = you can buy strangle for May series.

 

[Monkeytrading]

Hey fellas from Traderjiland, greetings from Monkeytrading.

Comm4300 thank you for the advice but I only trade stock options, have no experience in Nifty.

Guys it has been a very depressing week in my personal life, lot of bad news pouring in but there was a silver lining at the end of it.

However, I was too busy to sit and trade. Have a open position in Arvind 180 Call @7.6 of 8k shares. I am expecting it to hit 190 on Tuesday and my target it to get out at 12.35.

Besides I met a guy who is terminal trader for a leading brokerage firm. He told me in his whole tenure(of 6 years!!) as a desk dealer he has not seen a single trader who does F&O take profits and request for a payout. That i think is a very sad fact. When I talked to him about disciplined trading he simply rejected the notion. According to him trading is a vice, a addiction, people who loose money once come with cheques of another payin till they loose a huge sum or everything in some cases.

On trading frequency he said if you trade only 6-7 times a year you can make profit but then it becomes a game for traders and they simply want to play it for the fun of it, hence they get tempted to play lot of bets and end up on the loosing side.

Plus a Desk dealer has to earn a brokerage of 10K per day and hence he needs to make more and more people trade in FO to generate such a Volume.

I am thankful to my broker for not calling me all the time to take trades. Also, I am feeling like one of them, who keeps loosing money. Hence, I have decided. If I loose this race, I will quit trading and participate in markets only by increasing my SIP allocation and work hard to create value in real life and make a company that is listed on the exchange and someday people will loose money by trading options of my company.

As a gujarati, your conscience always haunts you, why are you not doing business??? Yesterday a friend offered me to join him open a preschool, he has good experience in the business. But it is difficult to take the plunge.

Anyways, I wish you all a Happy Ambedkar Jayani, He has done a amazing job in drafting our constitution. But had he been alive now he would rather die looking at the state of reservation policy which he introduced as a social reform which is now a major tool for rigging Votes..

Cheers...!!!!:thumb:

 

[Monkeytrading]

Hey there chaps,

Basically aaaaaaaapril series me to apni vaat lag gai..

Trading capital left is 47.5K...

Closed arvind 8K at 7.8 again bought 4k call of 195 at 2.4 and booked out at 1.3

bought HDIL PE and got stopped out then went long with a call and stopped out lost 10 K

My love affair with Auro just does not end bought 550 call at 14.9 and booked out at 4 today.

Had a face saving trade in BoI bought 220call at 5.2 and sold today creating the high of the day at 14!!

My problem is that I wish to reach 1Lakh in 1 trade which does not seem to be happening, there were so many occasions where I reached 75K on M2M basis, but I was too greedy to book profit.

So 2 years and 10 months left, FD has all the capital intact and I am struggling to recover lost initial capital.

I was reluctant to trade in May, was thinking if I can simply sit out and start from 20 May with a clear trend emerging. But I think I should continue but with a few rules.

1)not to have more then 50% of the trading capital in the market at any point.

2) NO playing with 8K and above lot options, too big a dent for my size of capital if trades goes wrong.

3) 10% return is good profit, if the position is giving profit which is 10% of the total trading capital, Kindly book it. :annoyed:

I hope you guys had a better outing in the April series. Wish you all a splendid Modi series in May.

Cheers.. See you guys in a weeks time...