This was posted as a comment by a reader. This could be your story or my story, in fact the story of every Option Buyer.
We take small profits and think that we are smart. We read everywhere that it is impossible for this miserable person called Option Buyer to make money.
This is true.
If the Option Buyer keeps on taking those small profits and being smart, he/she will never make money.
Please read:
  • Congratulations to everyone who booked incredible profits yesterday!

    More importantly, congratulations to everyone who stuck to the code laid out by Mr.Pramod Kumar – Belief and Patience.

    The day of reckoning has brought cheers all around, but I am here to tell a different version of it.

    For I am not one of the above, I really envy you – and envy is all people like me can do now.

    Before you ask, yes, I did take up the trades suggested by Mr.Pramod Kumar in a scrupulous manner. I believed market will be in oscillatory mode and whenever the slightest of the swings happen I would take profit and reenter when the entry price is again favourable. This way I would benefit from the well curated trade list and also I would be one step ahead of my own Guru! A ‘real smart thinking’ indeed!

    I do not feel shame in admitting my failure story. I do want it be known to every one. You may not hear such stories at least for some days as there is euphoria everywhere in the PUT option buyers circuit.

    I exited the winning horses L&TFH, IBULHSGFIN and RELCAPITAL at the following prices respectively
    on 17th and 18th September: 1.6, 16 and 8 with profits of 3600, 3750 and 5250. I thought when they dip again on 19th I would buy them. I could never get back into these trades again as the prices were not ‘attractive enough’ get in again. Even IBULHSGFIN was available in the morning for as low as 15 and I did not want to buy it again. Waited for it to reach 13. Waited only to see it getting to 300 and above helplessly and with no amusement to myself at all. Similar scene with almost other scrips that nosedived.

    Short sightedness can cost fortune or at least prevent you from getting one. Mind somehow refuses to accept the Options Premium as Stop Loss. After August fiasco where everyone of us lost out, the mind wants to be too careful in counting pennies ‘unmindful’ of pounds lying nearby. Lack of patience and belief will certainly rub salt to the wound. This seems to have cost me dear.

    I did book some profits with PNB and SUNTV (not at their peak); I am saying ‘some’ because Zerodha curiously rejects or does not want you to book profits when you want it; it misdirected my SELL orders as MIS orders. Panic sets in. You are not sure what to do. If your reaction time does not beat the market pace as things unfold, you don’t succeed. If your broker’s platform decides to have fun at this crucial time, you will almost never succeed.

    Plenty of times ‘greed/fear’ factor has been discussed. Mr. Pramod Kumar has taken us through what he believes as a structured and disciplined protocol in this otherwise unpredictable market. I disrespected it at my own peril.

    It would be great to have experiences like this from others.

    Stories of missed opportunities are always lessons.

    Stories of ‘so near, yet so far’ are much better insights for the entrants as well as the practitioners of this field.

    Thanks for reading.

    My Views :

    This is an excellent write up of the reality of Option Trading.

    This blog was started with the objective of making Option Trading simple and proving that Option Buying can be profitable.

    It is a pleasure to note that many of the readers have learnt the lessons of patience and belief and have earned decent profits.

    I wish more readers to become profitable traders in future.

    My Request :

    This blog was started in January 2018. Readership has grown in the last 8 months and this is for a reason. We share a relation of being honest in our conversation. I  request the readers to share their stories for posting on these pages.

    Please share the posts on this blog on your social media platforms also to make it more popular.

    If you know some traders who could benefit from Futures and Options Workshop at Bangalore on October 07, 2018, please share the link below: