We all know that August trades went wrong terribly.
The losses were big. At times we did not have the courage to look at the numbers. Losses do that to all of us. We go into a shell. We know but forget that losses are part of trade and are meant as life lessons. It is hard to be philosophic about the losses but self pity will not lead us anywhere.
Let us look at the real bad numbers.
CALL BUYER :
Only 1 trade gone right out of 5.
PUT BUYER :
2 out of 11 right.
This is the worst performance of our trades in the last 4 months.
What to do from here on ? :
We have to keep going. Unless we keep going, we have no chance to make profits.
In my yesterday’s post I have given my own example of recovering from a much bigger loss.
https://optionsnext.com/blog/august-series-was-bad-how-do-we-recover-from-here/
We need the following :
Keeping the belief in our methods.
Keep trading normally putting the August losses temporarily back of mind.
Trade little less to avoid the stress.
It is already established that we know how to trade and we know our own strength and weakness.
There is only one way and that is the way ahead. We have to travel the path with confidence but aware of the pitfalls.
Enjoy the Sunday.
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
Andy September 2, 2018 at 12:22 pm
Thanks.
Trading less can avoid stress; Not trading at all can relieve us completely of stress.
So, irony apart –
Do we really “know our own strength and weakness”.
If yes, what do we differently not to run into the August trap again?
Replyadmin September 3, 2018 at 8:35 am
If we do not know our strength and weakness, we shall soon find out as we go forward. Trading is a journey which teaches us new lessons all the time. Why do we have to think about August as a trap? Same methods worked quite okay for three previous months. Sometimes, things will go wrong and go wrong badly.
ReplyCheers.
Andy September 3, 2018 at 12:14 pm
Good. This conviction should steer us. Let us see what’s in store for September.
ReplySelva September 2, 2018 at 2:58 pm
Month Trades Profit Loss Success % Invest. P / L %
ReplyMay 11 4 7 36 93935 67450 71.80
June 14 5 9 36 117363 55308 47.13
July 15 5 10 33 127985 43090 33.67
August 17 3 14 18 126414 -95339 -75.42
Total 57 17 40 30 465697 70509 15.14
Vivek S September 3, 2018 at 7:22 am
What’s the take away from last month sir? Any mistakes that we did to avoid in the future.
Reply