February 2019—Options Buying Again — Day 18

Another killer day.

A few days ago the market could do nothing but go down. Suddenly it took steroids and found strength. The first stocks which became strong were those which were beaten down. Those were our trades.

But all these NIFTY moves are leading us nowhere. On Budget Day, NIFTY had closed at 10893.65.

We are still below that. The flattish trend and the sudden reversal has eaten away the option premiums and we are poorer for our efforts.

Exit was taken from HEROMOTOCORP PUT 2700 last week otherwise loss would have been higher.

I have already reconciled to the possibility that February is a losing month. Writing on the wall is clear unless the market rubs it off.

Once again, no new trades for the day.

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.

Comments

Akshay kumar February 26, 2019 at 9:00 am

Dear Pramodji,
As per your blog’s today’s P/L statement, the Heromotocorp is showing as exited at 117 giving a profit of Rs 17600/ but you never told us to exit that scrip anywhere…and so the scrip is still active and not closed yet. And since, its trading at Rs 26.40 now, the net loss is Rs 500/ in that scrip. Hence the total cumulative loss is Rs 40540/ as on today. Please correct me if am anywhere wrong.

Regards..

admin February 26, 2019 at 3:47 pm

Dear Akshay,

Thanks for sharing your views. This blog is about teaching and learning however weird the lessons be. No spoon feeding here otherwise all of us would be bound to trading desks.

Still I had suggested an exit from this trade around Rs. 100 in the post dated February 18, 2019. It moved above that price on February 21.

At close today it traded at Rs. 44.00. That should be some consolation.

I hope your concerns are addressed.

Cheers.
Reply
- Krishna February 26, 2019 at 5:47 pm
  
  Dear Akshay,
  
  You & many might feel agrieved with the trade; but your tone & manner is not right for me & for most people here I assume.
  
  We all know it’s easier to stay in paper trade ; if you have conviction not so easy while facing real profit & loss in trade.
  
  I think sir is within his right to close a trade when he has indicated the same in previous blog . Plus this has happened in some other trade too in the past where he has exit a trade in some minor profit or loss also.
  
  Your tone suggested manipulation of profit figures which is not the case . The last 8 months I have been reading the blogs daily & no such thing has happened.
  Good luck & stay away from trading if you have lost money for some time at least .
  
  PS : No advice but a friendly view.
  Reply
  - admin February 26, 2019 at 6:30 pm
    
    Dear Krishna,
    Losses hurt everyone. We know they are the most essential part of trading still it is difficult to maintain our composure while facing them.
    Unless we learn this art we do not become good traders.
    As far as overstating the profit is concerned, that is never done. Rather losses are shown on the higher side.
    Some readers have posted in their comments that they got out of IDEA put 30 at Rs. 2.20- 2.45. That is handsome profit. I am showing this trade as a losing trade. The reason is that nobody can get all the trades right even if market is in your favor.
    Thanks for sharing your thoughts.
    Cheers.
    Reply
    - dev February 26, 2019 at 8:15 pm
      
      I just exposed my neck out to be chopped this month in aggression. Thanks to the govt. for the action in time otherwise, the loss would have been biggest in my somewhat disciplined trading history.
      P.s. I was not in Mahindra trade since starting.

Samar February 26, 2019 at 9:02 am

One thing that is still not clear is when to exit a profitable position. Do you have some criteria to book profit? Maybe you could post any change in your position on twitter, in real time.

Ketan Thakur February 26, 2019 at 4:41 pm

Sir when will venue of Pune workshop be decided?

admin February 26, 2019 at 6:24 pm

The venue has been decided. Will post about it tomorrow.
Cheers.
Reply
- brij goenka February 26, 2019 at 11:24 pm
  
  Sir wat bout a workshop in kolkata
  Reply

Azar Shaikh February 26, 2019 at 9:02 pm

Sir why people not read Disclaimer.Make it more bold.

Akshay kumar February 26, 2019 at 9:00 am

Dear Pramodji,
As per your blog’s today’s P/L statement, the Heromotocorp is showing as exited at 117 giving a profit of Rs 17600/ but you never told us to exit that scrip anywhere…and so the scrip is still active and not closed yet. And since, its trading at Rs 26.40 now, the net loss is Rs 500/ in that scrip. Hence the total cumulative loss is Rs 40540/ as on today. Please correct me if am anywhere wrong.

Regards..
- admin February 26, 2019 at 3:47 pm
  
  Dear Akshay,
  
  Thanks for sharing your views. This blog is about teaching and learning however weird the lessons be. No spoon feeding here otherwise all of us would be bound to trading desks.
  
  Still I had suggested an exit from this trade around Rs. 100 in the post dated February 18, 2019. It moved above that price on February 21.
  
  At close today it traded at Rs. 44.00. That should be some consolation.
  
  I hope your concerns are addressed.
  
  Cheers.
  - Krishna February 26, 2019 at 5:47 pm
    
    Dear Akshay,
    
    You & many might feel agrieved with the trade; but your tone & manner is not right for me & for most people here I assume.
    
    We all know it’s easier to stay in paper trade ; if you have conviction not so easy while facing real profit & loss in trade.
    
    I think sir is within his right to close a trade when he has indicated the same in previous blog . Plus this has happened in some other trade too in the past where he has exit a trade in some minor profit or loss also.
    
    Your tone suggested manipulation of profit figures which is not the case . The last 8 months I have been reading the blogs daily & no such thing has happened.
    Good luck & stay away from trading if you have lost money for some time at least .
    
    PS : No advice but a friendly view.
    - admin February 26, 2019 at 6:30 pm
      
      Dear Krishna,
      Losses hurt everyone. We know they are the most essential part of trading still it is difficult to maintain our composure while facing them.
      Unless we learn this art we do not become good traders.
      As far as overstating the profit is concerned, that is never done. Rather losses are shown on the higher side.
      Some readers have posted in their comments that they got out of IDEA put 30 at Rs. 2.20- 2.45. That is handsome profit. I am showing this trade as a losing trade. The reason is that nobody can get all the trades right even if market is in your favor.
      Thanks for sharing your thoughts.
      Cheers.
      - dev February 26, 2019 at 8:15 pm
        
        I just exposed my neck out to be chopped this month in aggression. Thanks to the govt. for the action in time otherwise, the loss would have been biggest in my somewhat disciplined trading history.
        P.s. I was not in Mahindra trade since starting.
Samar February 26, 2019 at 9:02 am

One thing that is still not clear is when to exit a profitable position. Do you have some criteria to book profit? Maybe you could post any change in your position on twitter, in real time.
Ketan Thakur February 26, 2019 at 4:41 pm

Sir when will venue of Pune workshop be decided?
- admin February 26, 2019 at 6:24 pm
  
  The venue has been decided. Will post about it tomorrow.
  Cheers.
  - brij goenka February 26, 2019 at 11:24 pm
    
    Sir wat bout a workshop in kolkata
Azar Shaikh February 26, 2019 at 9:02 pm

Sir why people not read Disclaimer.Make it more bold.

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