I believe in taking a trade and staying with it as long as possible.
Outcome of the trade depends on the market. If the trend goes against my trade, I take the loss. If it is for me, I keep on waiting. The results are mixed. At times, the profit seen is given back. There are times when a real handsome profit is derived from the wait.
The wait is tantalizing, agonizing and everything in between.
I am sharing two trades from September 2017. This blog did not exist at that time. So I was not able to share my joy and frustration at that time.
I am doing that now.
SBIN PUT 280 SEP 2017 :
The trade was taken on Sep 01 at Rs. 6.90.
Then the wait began. The stock remained range bound moving lower but not significantly.
There was life in the trade on September 22 and then on September 25 when I got out at Rs. 20.70 at 3 times my buying price.
When trend is in your favour, you have to ride the trend.
A trade was taken in PUT 260 @ Rs. 3.25 and exited at Rs. 9.00 ( little less than 3 times ) in next two days.
Both these trades combined paid out a profit of little more than Rs. 58000. That was not looking likely till September 21. But the next 4 days worked out wonderfully.
NIFTY PUT 9900 :
While the SBIN trade was about waiting patiently, that trade had not gone wrong terribly.
NIFTY PUT 9900 had gone wrong.
Bought at Rs. 91 on Sep 05.
After that the trade started going wrong.
The PUT price had come down to a low of Rs. 7.50.
Most of the traders would have quit before that.
The next few days were like this.
From a low of Rs. 7.50, the PUT went up to a high of Rs. 197.60 on the expiry day.
I did not get the best prices but was able to close the trade profitably after seeing the worst.
Closed at Rs. 110.40 and Rs. 150.00.
Not a great profit but considering the price of Rs. 7.50 it was a gear jump.
This was an occasion when patience paid out.
The real story of that month:
At one stage the loss was Rs. 140000.
At expiry, the profit was Rs. 103000.
What was done to recover the loss?
Absolutely nothing. I just booked the profits when the trades turned around and became profitable. Or moved the strike like in SBIN trade.
Market can do anything. We just have to keep the belief.
This was a blast from the past.
Will post the complete story at some other time.
Enjoy the holiday.