What a month this has been.
State Assembly Election Results not favoring the ruling party, RBI Governor resigning and quickly being replaced, world markets tanking to the lowest point of the year while our market tried valiantly to buck the trend initially and then give up.
This has been a month where the twists in the tale do not come to an end.
On Christmas Eve, US Markets sunk to the lowest point of the year. On December 26 we thought we shall also go down. How long we can stay aloof from the biggest market in the world. I had written here yesterday that we may see NIFTY going below 10600.
We saw it going to 10534.55 and then move to a high of 10747.50 ( an up move of 213 points during the trading hours) before closing at 10729.85. So much for the connect with the US Markets.
The twist does not end here.
This is what Dow Jones did on December 26, 2018 the day after Christmas.
When did we last see an Index gaining 5% in a day ? NASDAQ did better than this by being up by 5.8%.
Is it the return of good times the world over or just recovering what was lost in 2-3 days before Christmas ? We do not know. Looking at the Asian Markets this morning in early trades it does not appear that too much is being made out of this move in the USA.
Our Position :
Apart from a general idea about the likely trend, we have seen that the international cues just do not work for us. Trades have a mind of their own and this month our trades have decided to go wrong collectively.
Yesterday a little hope was kindled as the market went down initially and then the reversal happened. That reversal combined with the trend from US markets overnight does not gove us any hope for today, the last day for December Expiry trades.
It is time to salvage whatever can be salvaged and write off this month as a losing month.
Yesterday JSWSTEEL trade was not taken as initial price for PUT 280 was higher than our price range and when it entered our price range, the trend had already reversed and it did not make sense to add to a losing position when the trend is against us.
Every other trade lost further ground. Today we shall look towards taking whatever little can be taken from these trades and move on to next month.
A loss creates some bitterness and loss of confidence. It is normal and we just have to get over it. Remember what every one tells us — Option Buyers do not make money. Sometimes these people are right. We made money in 6 out of 8 months and good money at that. Every month is a new opportunity and we look forward to January trades.
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.