It is Monday morning again.
Last week was not good for us. Except on Monday, we saw market moving up everyday defying every expert’s opinion about the market behavior in the event of a Congress victory in 3 state elections. Now same experts are posing as if this was their predicted outcome of the market. Strange people, these experts. They spin the same views on either side. Probably that is the expertise.
Let us leave them alone. Like all experts I too have been wrong. My being wrong hurts me financially. And it has hurt badly. From a very good profitable position, we are back to where we bagan the month. Almost no profit. Only the baggage has increased. Now we have 10 trades to take care and these trades are not showing signs of doing well currently. It is not an easy situation to be in.
I could have closed all the positions few days ago and claimed a profitable close to the December Series. But we traders are not to simple. we need some action and there is always the hope of making some more money. So we stay in the trades and look for more trades. Nothing wrong with that, only hope and expectations should not be replaced by greed. Right now, it is not about greed but about fear. Fear that things can go wrong from here on.
US markets fell by about 2.00% on Friday. There seems to be no impact of that on Asia or SGX NIFTY. SGX NIFTY is trading positive by 36 points. We have seen over last few months that SGX has stopped to be a good indicator of the trend in recent days. It is failing even to predict the opening trend.
Friday was a choppy day in a very small range but caused enough damage to us. No stock moved away considerably and no stock moved in our direction significantly. Only all of them took away some of the option premium bringing us to a stage where worry begins.
It is not that we do not have a chance now. Things can turn around any time. The worry is that we have now 8 trading days left in this expiry and would like some good move in direction a bit early to be of some use to us. With 10 trades already to manage, we do not want more exposure also.
No New Trades :
As explained earlier, no new trade today. Let us be watchful and cautious with the existing trades and let the market do justice with our selections. It is difficult to wait in such situation but we have to tough it out.
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.