On November 01, NIFTY had taken a breather and ran full steam ahead on Friday.
The run was all one way throughout the day except for some relief in the last hour of trades. Not that this did anything good for our trades.
For us the villain of the day was MARUTI stock which spurted more than 6% higher. Well, the double bottom wisdom worked for some while we are licking our wounds. M&M too went very high initially before giving up some of the gains. SBIN is not doing what we want this stock to do. So we were down on all the three counts.
The new trade in TITAN CALL 900 could not be initiated as the suggested price of Rs. 20 did not materialize throughout the day. This call went up marginally but it is not for us.
We now look at the ugly picture of the loss incurred in 6 days of trades:
It is fortunate that we are not saddled with too many trades. The loss in 3 trades itself is a big concern. Anything more and we would be in deeper trouble.
These were the facts. How do we face the facts and act from now on?
We have seen in the past that the markets will do what is required. We just need to keep on doing our part i.e. make our selections and trades by the same method as we are doing. Two or three trades going wrong is not the end of the world. One good trade is enough to offset the loss of three trades. As the month progresses, we shall be having more selections and trades, hopefully some of them will go right to get us back to the winner’s circle. There are still 17 trading days left to expiry day and a lot can happen in these 17 days.
It is all about keeping the faith and keeping the head clear.
Options are a wonderful tool of trading. For the buyers the loss is limited ( we are uncomfortable with this limited loss too) and the profit potential is high when the trade goes right.
We look forward to the week ahead with hope that the tide turns in our favor and we pick up few right trades.
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.