Well, the losing streak of NIFTY ended on day 9. It went up with a vengeance. Before you could notice what was happening it shot up and kept moving higher.
All our fears about the likely reversal and trades going terribly wrong proved true yesterday. It was bad in the morning and kept becoming worse as the day progressed and as the day ended the thoughts were not about profit but about protecting the loss. Trading in options is not for the meek and simple. It needs courage and conviction to survive such a day or a succession of such days.
We do not know what the future holds in store for us but we just need to hang in there.
This is how the day ended for us:
A disastrous day.
But is the situation really bad? We have given away all the profit which came this week but are still in better position than we were a week ago. We had moved to + 35000 from – 31000 and are now back to -15000. Such swings of fortune are disturbing and difficult to handle but normal in trading. One needs to learn to accept both positive and negative moves with same fortitude.
We still have 6 trading days left in the month. The up move yesterday was strong. Whether it will sustain till February Expiry is yet to be seen.
The top 10 gainers yesterday were all those stocks which were beaten down in the last few days. A look at the image below tells us that none of the heavy weight stocks was among the top 10 gainers yesterday. Such rallies have failed in the past. ( I have mentioned such examples at least 6 times in last 9 months, let us see how it works out this time)
Asia is trading slightly higher. SGX NIFTY is down 30 points. The day is going to be exciting whether we make money or lose money.
Again, no new trades today.
Trade cautiously, trade profitably.
P.S. — I am busy today over next 2 days in a family function. The post tomorrow may not be possible though I will make an effort.
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.