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:
A Reader Writes — The Real Story Of Option Buyers22 Sep 2018
Azar Shaikh September 22, 2018 at 5:41 pm
Here is my Story
I am learning stock market from last 2 years.Whenever i read about Option buying on website or in Youtube videos it says about 80% option buyers loose money.
So why go where ,we sure that we loose money.
I have very limited capital in my Dmart account (28000) . Saving 2000 every month from my salary.I never tried it as fear of loosing Money.
So I started buying HDFC, HDFCBANK,TCS,INFY,HCLTECH Hold for 2 to 3 days taking 200 to 300 profit or 200 to 300 loss.
My Max Profit is HCLTECH – 1200
My Max Loss is
HDFCBANK – 600
One month tried Intraday my capital reduced to 26000.
So I decided stock market is not my field. Let’s give up.
Then In August month I was read about Pramod Sir on quora and visited Options next blog. Where pramod Sir write about trade taken every month.
I see there was no Profit only huge loss.
Now my belief is strong Option buying is idiot game.
But some how I registered for Pramod Sir Mumbai workshop.
Dekhate to he kya hota he.
Attended workshop.Its just worth learning.Belief and patience only make you succeed.Reply
I learnt that you can not make money every month from option buying. But you can be profitable with good mentor like pramod kumar sir.
Thanks you sir for such a wonderful workshop.
Saket September 22, 2018 at 8:21 pm
As rightly mentioned by Pramod-ji, we should have “patience” and “belief” to succeed in options trading. It is easier said than done though 🙂 Because of August experience, I also entered only few trades. In fact, I missed the major bread-winners viz. RELCAPITAL, L&TFH and IBULHSGFIN (Fear overpowered belief!). But got a good relief through PNB, SunTV and Tata Motors. I exited all these trades in good profit, but could have got better profits had I kept patience intact…
For the first time I picked up “new” stock on my own for options trading – which was HDFC PUT 1920. Bought on 7-Sep at Rs. 18 and Sold on 10-Sep at Rs. 41. Decent profit, isn’t it? No! It closed at 118 on 21-Sep. I violated both the rules of “patience” and “belief”. So, I got what I deserved 🙂
I think “belief” is comparatively easier animal to tame than “patience”. Pramod-ji, I am sure your valuable guidance and words of wisdom would help us readers acquire both these skills eventually…Reply
Reshmi P R September 22, 2018 at 8:27 pm
Sir , I would like to share my story. I have been following your blog for 4 months now. The strategy I follow is book profit when the options reach itm or 10k profit and move to lower price. What I have noticed is this way I might be certainly losing on the max end of my profit, but certainly I do ensure some capital protection. For example , last month once yes bank reached itm, i booked profit of 9k and entered higher ce strike. Even though finally, i lost it, but atleast 7k of my capital was saved. I applied same principle this month. Booked a profit of 2.15 lac , and entered all lower strikes at total cost of 60k. So even if things go wrong, I am assured a profit of 1.5k. but if luck favours, my profit can increase. I feel this way one can ensure capital protection also.Reply
Tharik September 23, 2018 at 10:07 am
It happened with me too . I was holding PNB 77.5 PE from 1.65. On Friday, when I see the volatile move happening, I put a limit order at 10Rs. But Zerodha rejected the order saying the margin is not enough for the square off.. But the price went till 12Rs and gone back to 5 at the end..
For me, it was a notional loss of (10-5)*5500= 27500Rs
Anyway, I could have booked at 6 Rs also.. But I didn’t do it, since I am going to wait in this trade as the trend is still down for PNB, expecting a bigger profit or the profit whichever the market is willing to give me.Reply
Dev September 23, 2018 at 8:17 pm
This is my story :Reply
I squared of all the positions on thursday EOD as I had bad experiences on friday everytime in past.
but on friday morning realised that I am deviating from the path laid by Pramod sir and entered again in some of the positions i.e Airtel , TATAmotors and Pnb, SunTv as it is not easy to enter again in all the trades on the very next day of booking profit but timing the market costed me dearly in the profit amount.