The year 2019 is done and dusted.
The year was good in some parts, bad in other parts but educative all along. The profits keep us in the game, the losses tell us never to be complacent and the market moves make the traders look stupid most of the time.
Traders have only short term memory. They look at the present bad time and give up while looking for another method which would give them some immediate relief. I never found any such method and it is doubtful that other traders will find such a holy grail.
Life in the market is not a straight and simple journey. There are sudden twists, turns and blind sides on this road. Smooth is followed by the rough and then the smoothness returns. By that time, most of the trades quit the journey.
Looks familiar. I have been there many times. It is only by not giving up and staying with a method that one comes out of a messy situation.
The Year 2019 :
We have not seen profits in the last 4 months of the year.
Earlier we were without profit in February, March and April.
That makes it 7 losing months in a year. Not the best advocacy for Option Buying and surely not a good advertisement for this blog.
Now let us separate the reality from the perception. Let us look for the actual numbers for the year.
December —– Rs. 50052 (-)
November —– Rs. 55142 (-)
October ——— Rs. 68169 (- )
September —– Rs. 43299 (-)
August ———– Rs. 123798
July ————— Rs. 94879
June —————- Rs. 42125
May —————– Rs. 17485
April —————– Rs. 16887 (-)
March —————- Rs. 25450 (-)
February ———— Rs. 30173 (-)
January ————– Rs. 178579
Profit for the Year — Rs. 167294
The important point is that a losing stretch of 4 months which hurt our profitability in a big way could be taken into our stride and we stayed profitable for the year.
Giving up a big profit hurts and it should hurt. But the big take away is that we are profitable for the year.
Every one says that option buying can not be profitable over a period of time. There is so much going against the option buyer including the problem created by physical settlement of F&O contracts.
We have to fight with our hands tied. It is time we learnt to kick.
And another number to look back as we continue with the journey in 2020 a little rattled but strong in our belief.
Profit for 20 Month period from May 2018 to December 2019:
This profit has also come down. The same 4 months have reduced the overall numbers too.
But it is still a profit of Rs. 710548.
Why should one abandon such a method which has worked so well over last 20 months?
Why to begin having doubts now?
Why to give up?
We cast the doubts aside and keep up the attempts. One does not reach anywhere by quitting the journey or by moving half heartedly.
Wishing the readers a profitable and wonderful trading journey in the year 2020.