NIFTY was flat yesterday.
It appears that markets have taken a breather before resuming the up move. The all time high of Rs. 11171 is now within touching distance and it will be no surprise if that high is taken out today.
For us the highs or lows do not matter much. They are just an indicator of the current trend. As we do not intend to fight the trend it only tells us that it is time to exit the trades.
One of the readers called me yesterday.
His point— ” We have come down from a profit of Rs. 122000 to just Rs. 50000 in a matter of 3-4 days. Is it not a big loss ? “
Now the answer.
No, it is not a big loss. It is a smaller profit compared to Rs. 122000.
Readers will do well to remember that we had a losing position of Rs. 42000 on July 10, 2018 out of a total capital of Rs. 84000. That was loss.
In June Expiry, we were in a losing position till Day 18. Only in last two days we saw the profit.
Market gave it and market took it away. I am suggesting ways to protect the profit. It is for the readers to practice and implement those methods.
For example when BHARTI AIRTEL PUT 360 went up to near Rs. 17.00 yesterday one should have got out and bought PUT 340. PUT 360 came back to near Rs. 8.00. This loss is Rs. 9.00. In PUT 340 loss would be Rs. 3-4. This means additional profit of Rs. 6800-8000.
Keep learning and keep earning.
The status yesterday.
Expiry Day :
SGX NIFTY is indicating a strong market today. It may prove to be right or wrong but we have to tread with caution. Let us take appropriate exits to stay profitable for the month.
No new trades. Except BHARTI other trades do not look to be any more value. So we salvage whatever can be done there and book some profit in BHARTIAIRTEL if possible.
There is always another trade and another expiry month to look forward to.
We bid farewell to July Expiry month with both good and bad memories.
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.