NIFTY closed at 10779.80 on December 27, 2018. This brings to close the last F&O trades for the calendar year 2018. There are two more trading days left in the month but those days are counted towards January 2019 Expiry.

On November 29, 2018, NIFTY had closed at 10858.

The 19 trading days ultimately resulted in a small decline of about 79 points. But the ride was not smooth. There were big moves in both directions finally getting nowhere. A wasted month from the investor points of view as well as for us humble traders. We saw our hopes rise and fall with each crest and and trough in the NIFTY moves. It was unnerving all the time and culminated on the last day into a poor result for the month.

I had already written about my apprehensions about the likely outcome over last few days. Some of the traders must have got out at some better prices and salvaged somrthing out of the bad situation. But I like to account for the losses to the full and leave some of the profits when in that good situation.

The month ended badly.

Out of 12 trades this month only 1 turned out right. With this dismal score the loss for the month is Rs. 47000.

Review of Trades :

It is not that these trades just flopped. Many of them showed decent profits initially. RELCAPITAL PUT 210 which finally ended worthless had quoted above Rs. 20 also during the month. Similarly RELINFRA too had come into reasonable profit at some point of time.

It was our expectation of a bigger gain from these options which failed us. Had we got out of RELCAPITAL PUT 210 at around Rs. 19-20 and moved to a lower strike say PUT 190, we would hace cashed about Rs. 15000 more in profits. That would have brought down the loss figure. But mistakes happen. And big profits are earned through patience and planning. This time, we had the patience while the planning did not work out.

Way Forward :

There is only one way to go about it. Keep doing what you have been doing. Cut out the mistakes. With that markets may smile at us once more.

Remember it is all about the same three things which I keep repeating:

Having the belief in your methods.

Knowing your trades.

Knowing yourself.

Our journey started sometime back and by now we must be knowing our trades and ourselves. Belief comes with success and success comes from the belief.

Summary of Results :

We began this trading journey from trades of March 2018 Expiry and specially for Option Buying Trades from May 2018 Expiry.

This is the summary:

Number of months for Option Buying Trades :  8

Losing Months : 2

Profit Making Months : 6

Number of contracts traded in 8 months :  111

Number of contracts gone wrong ( Loss ) : 72

Number of contracts gone right ( Profit ) : 39

With just 35% of the trades being right, the profit for the 8 month period is Rs. 543254.

Though the loss in December hurts I am content with the results. A profit of more than Rs. 500000 in 8 months is generally not seen by the option buyers with small capital. We are thankful to the market for the rewards it has been giving to us and we are keen to learn our lessons from the losses.

The selection method appears to have not worked this month. The process did alright but the nature of option trades did us the harm. Stock prices did come down in most cases but did not come into the money at the right time when a big profit could be cashed.

We managed to get by in November just by the skin of teeth and December is a loss. It is time for the markets to smile on us in January trades.

Welcome to January Series.