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 ? “
Good question.
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.
Comments
Chirag Patel July 26, 2018 at 10:33 am
It was a wonderful month Pramod sir…..I agree with you that it would be smaller profit compared to 122K…. If we had not learnt how to be be patient, we wouldn’t have seen 122K in the first place……unless we realise any gains…..we should not take it for granted……..personally I would like to speak of myself….I was never able to trade in options even though having all the theoretical knowledge…..understanding greeks, IV and time decay in detail….all these knowledge never made me a trader….only after leaning through your wisdom I was able to make profitable trades…….and I know still there is lot more to be learnt…….I had heard someone saying “hum log paristhiti nahi badal sakte lekin manashiti to badal sakte hai”…….so yes…..it was small profit compared to 122K…I am sure many of us are more than happy with the experience and learning process we got along with it
Replyadmin July 26, 2018 at 11:37 am
Thanks Chirag for sharing your thoughts.
Losing out on profits looks bad but is part of a trader’s life. Less profit is any day better than losing. Most traders are losers. I would be happy if only few of them are able to change their mindset.
Cheers.
ReplyNathan July 26, 2018 at 12:22 pm
Dear Pramod ji,
ReplyOn a month when the NIFTY and SENSEX scaled new peaks, if we are in profit with only by buying PUTs, it is highly appreciable.
This has become possible only with your experienced guidance. Starting from right selection of stock and managing the trades with discipline, your valuable guidance is much appreciable.
As a trader I am more disciplined now, more confident now. All due to your confident guidance.
There is still a lot to learn for me. But now at least I am more calm in managing my trades.
Thanks Pramod ji. For me the learning continues..and so the earnings, I am sure.
Jayesh July 26, 2018 at 12:38 pm
I think the strategy of holding with patience will recover all those small profits we give away in the long run. Please share your thoughts and correct me if I’m wrong.
ReplyVIJAY July 26, 2018 at 12:50 pm
Yes, I do belive the same and SPOT ON.
ReplyJayesh July 26, 2018 at 12:57 pm
In June expiry I didn’t have the patience of last one hour and few stocks started moving in our direction in last hour of expiry only. In this month I was trying to be patient but the market in no mood to oblige.
I think market plays this trick so that trader keeps on changing their strategy without viewing the strategy from bird view. I think this strategy of holding the position with patience will recover all those small profit/loss we give away in the long run. please share your thoughts on this and correct me if I’m wrong.
Finally, thanks for your guidance and teachings, I am improving my patience day by day.
ReplyNilesh S July 26, 2018 at 2:56 pm
Yes Pramod ji, agree with all your thoughts and we should be greatful to the market for whatever profit we are having.
For August series what’s your view on Maruti CE.. it’s quarterly results are good and today stock is almost 400 points down.. so is it worth having Call option for August series considering good results ?
ReplyRK July 26, 2018 at 3:39 pm
Pramod sir,
I wish to start my new journey from August series along with your guidance.
After reading the blog fully, am all confident, know what to expect from market and hope to be profitable in the end.!
Thanks
ReplyRK
Tharik July 26, 2018 at 5:41 pm
Hi Sir,
ReplyPlease advise us on how to stay calm and focused when the market is not favouring our trades. We all know that there is a next day always.. but I would like to know how you manage your mind when things go wrong
Arjuna July 26, 2018 at 7:06 pm
August selection posted?
ReplyNse site how to identify first 10 fno stocks as you told in training program.
Prince Nahata July 26, 2018 at 10:15 pm
We all know that this game has equal chances of losing & winning.I made so many silly mistakes in last three expiries.I will try to learn from them and be a better trader.
ReplyBy the way only this month was profitable for me as I followed Pramod Sir’s almost every call while in previous months I took too many impulsive trades which hampered my P&L.
Thanks Pramod Sir ,looking forward to your August series calls.