Let us begin with something different today.
There are two words which look similar but are different.
Bravery and Bravado.
I could find this difference as explained in a Poker Magazine:
The success in trading is not much different from success in poker or life.
Why this discussion today?:
Because as a trader we should look back at what we have done. We have to find out whether we were doing the right things in spite of difficult situation or it was the false bravado which made us do it.
And this analysis is to be done without emotion and not to be impacted by the current situation, good or bad.
We find ourselves in not a very happy position in the current month after the painful losses in previous two months. We do not know whether the fortunes will swing our way or not.
Such times call upon our resolve and belief system.
More of that later in the post.
This is how NIFTY fared yesterday:
This graph alone should tell us our fate for the day.
In the market, there is no hiding place. We were taken to the cleaners once again yesterday. The small gain in HDFCBANK CALL did not stem the rot.
Looking bad. I accept the fact.
Shall I take a new trade or not in this situation? That is why we had the talk about being brave in the beginning.
The profit in the past was not made by talking philosophy or trading psychology. Profit came from taking the trades when the trades presented themselves irrespective of the situation being good or bad.
I decided to go for a new trade for the day.
Bravery or bravado?
Time will tell.
COALINDIA is the stock exhibiting weakness in a strong market.
It is weak over 30 days and 7 days period both.
We look for COALINDIA PUT 125 @ Rs. 2.30-2.40.
Lot size 3700, maximum risk Rs. 8880.
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.