What a day?
From a happy dream to nightmare.
NIFTY ended flat for the day with a gain of just 7 points. But at one stage it was a loss of more than 80 points. The reversal hit our trades badly.
BIOCON made a fresh 52 week low at Rs. 250.05 ( Rs. 500.10 as per pre bonus adjustment ) and then recovered to Rs. 257 levels. This single trade could have made us profitable for the day if the price had stayed near the low point.
Similarly SUNPHARMA and TATAMOTORS recovered from the low points of the day and took away the modest gains we were looking at during the day.
Do we lose hope now with these reversals?
No. The stocks are hovering near their recent lows. Just one good down move will take them where we want and that would be the time to cash out.
Profits from option buying is not a simple journey on a straight road. It is like driving on a twisting and turning mountain road with numerous hairpin bends where we can not see what lies ahead.
Positions as of yesterday:
Trades for the day:
Today is last day of the trading week. We are already having 8 trades open and many of them not doing well. It is better not to take more trades till our situation improves for the better.
Patience while gaining and patience while not gaining is a quality a trader needs to develop. Let us use this day for practicing the art of staying patient.
No new trades today.
Be watchful, be careful.
Trade cautiously, trade profitably.
Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.