The last 4 months of the year have not gone our way. We suffered losses every month beginning with September Series and our misfortune did not end even in December.
The series was closed and losses booked on Thursday, December 18 much before the expiry date of December 26.
The status for the month:
A loss of Rs. 40952.
In addition, there is a loss of Rs. 8725 in Rs. 2000 Options Series.
We shall book this loss also on Monday and let us add a little more to it for the purpose of record. we consider this loss as Rs. 9500.
So total loss for December becomes Rs. 50452.
A loss is always depressing and it hurts. It hurts too much when it is continued over a period of 4 months. We forget that we has 4 months of continued profits before that. Most of the traders are rooted in the present. Past holds nothing for them and they are afraid of the future. This is the trader’s psyche and not much can be done to check or change it.
It has been very tough for the readers who started following this blog during last 4 months. I can not do much for them accept feeling bad about it. This is the period when the method we followed failed to deliver. This is the same method which has given us very good returns since May 2018.
Let us not live in the glory of the past. But let us not be disturbed by the present failures as well. We now look at the year 2019 as a whole.
The year began with a very good month in January 2019.
That good month was followed by 3 losing months in February, March and April.
After absorbing the loss of these 3 months, it was back to being profitable in May, June, July and August.
From September 2019, our trades have been going downhill and causing the present situation where doubts are arising about the effectiveness of our trading method.
We had 5 gaining months only against 7 losing months in this year.
Not the best of outcome apparently.
Now let us look at the actual numbers:
We begin with the current bad months and go back to January.
December —– Rs. 50452 (-)
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
We see 7 months with a (-) sign. Not a good picture to look at. But overall it is a profit of Rs. 167294.
The overall profit is less than the profit gained in the first month of the year but we can take only what the market gives.
We have to derive positive conclusions from the current mess and the overall review.
We ended up positive for the year only because— even while the losses were more in number, the profit in the good trades was bigger.
This lesson is never to be ignored. An option buyer can only hope to make profit but actually can not if this lesson is ignored. We have to keep looking for the big profits. They may not come so frequently like they did not over last 4 months but life is really good when they actually arrive.
We keep looking for those big profits though we are slightly unsettled by the current turn of events.
Let us take a break for few days, review our situation and move to the year 2020 with the belief that we are once again headed into the direction of profitable trades.
Thanks for reading.
Looking forward to the reader’s comments.