On Tuesday, NIFTY moved up 79 points unmindful of what was happening in rest of Asia.
Once again we are very near to the recent all time high of 11495. It looks like that market is determined to cross 11500 level. Whether that happens today or tomorrow is conjecture but it is so near.
A day earlier when NIFTY had corrected a bit, it gave us no benefit. Our CALLS had lost out while PUTS did not gain. Tuesday was a positive day for the index throughout the day. CALLS gained a little and the loss there reduced somewhat. PUTS have built up additional losses.
Here is the status for CALLS :
and for the PUTS :
With 10 trading days remaining we want some favorable moves in our direction. Am I concerned with the above profit/loss situation ?
Yes, one should always be concerned.
Do I run away now and protect further losses ?
Here it is a question of approach to trading and taking loss. It is not that after booking the loss I am not going to take another trade. The new trade will be based on similar logic which was used for current trades. That trade would have same chance of success or failure as the current trade. Why not trust the present bunch for a turnaround in the situation? We have taken some new trades as the month moved on. Did they all go right? Too much juggling does not give any additional benefit. So i would stay with the same set of trades. A new trade will be taken independent of the status of the current trades.
No New Trades :
We are already into 12 trades. Let us wait another day before entering into a fresh trade. Outlook for the day appears slightly negative based on Asia cues and overnight US/Europe markets. Let us hope that the day works out well for us.
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.
Comments
Bharat August 17, 2018 at 2:42 am
Hello Pramod Sir,
I read your post on Quora and now I am read it your post here. This is closing of US market.
Wall Street Rebounds As U.S.-China Trade Talks Resume
ReplyDow +396.32 at 25558.73, Nasdaq +32.41 at 7806.54, S&P +22.32 at 2840.43
Stocks rallied on Thursday, helped by news that China and the U.S. will resume trade talks as early as next week, marking the first official talks since negotiations broke down two months ago. The S&P 500 opened higher and extended gains into the afternoon, but some late selling in tech shares left the index +0.8% — down from +1.2% at its session high.
Meanwhile, the Dow added 1.6%, helped by a 9.3% spike in Walmart (WMT), which rallied after reporting a blow-out quarter and upbeat guidance for FY19. Cisco Systems (CSCO) also helped the Dow, jumping 3.0% on upbeat earnings, and trade-sensitive Boeing (BA) was also a positive influence, adding 4.3% amid the easing of U.S.-China trade tensions.
admin August 17, 2018 at 7:56 am
There have been days when Dow Jones was down by 250 points but NIFTY went up more than 100 points next day. There is no direct linkage between US and India market. Rupee weakness against the dollar and Crude Price up move have more negative impact on our markets than on US stocks.
ReplyLet us see how the day pans out.