NIFTY almost touched 11500 yesterday. Fell short by just 5 points.
What does that give us ?
Lot of pain and thinking to do.
The problem is that CALLS too have not done well. L&TFH is doing okay, but GAIL which looked a smart trade over first two days went wrong thereafter.
YESBANK was a laggard on the record high day. ( By the way, every day is a record high day )
PUTS do not have a chance in such market conditions. We have lost the time but price range is still not gone away from us. In June and July our trades recovered from much worse positions.
I know some of the new readers of this blog are getting concerned about the trades going wrong. Some of the old readers too also are having the same feeling. After all how many times you could come out of a mess of your own making?
We still have 15 days of trading balance in this month. That gives us the chance. In June we made our profit only on Day 19 and 20. Till day 18 we were losing and losing big. That is how the Options Trades work out.
Keeping the belief is important at this stage. If we get out of a trade in a hurry finding conviction to enter the same trade again is never easy.
As I am travelling, posting the Profit/Loss chart has not been possible today, but we all know that it is not better than yesterday.
I am not looking at reduction in loss. I still look for profits. Loss will come when it has to, we have to accept it as part of the trade.
No New Trades :
As I write SGX NIFTY is flat. We have seen that SGX NIFTY no longer is a good indicator of the day’s move but this is what we have.
Not trading will not give any profit but will not cause further loss. We do not take any new trades today.
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.