Just 7 days ago, I had shared the two year journey of Money In The Bank strategy after having concluded the October 2021 series trades.

We are still in October month.

One week is a long time in trading. Specially when one is on the losing side.

On October 22, 2021, BANKNIFTY was above 40000.

One week later, we see the index at 39115.

Yesterday, at one stage it was reeling at 38426.65 and our hedging PUT with 38500 strike had gone above Rs. 1000. Subsequent recovery bought back BANKNIFTY to above 39000.

A loss of about 1200 points in a week is not a big deal. Sometime BANKNIFTY moves this much in a single day. The concern is the fall in the heavy weight like HDFCBANK.

November Series — 1 Week:

Oct 22 — Rs. 464

Oct 25 — Rs. 6643

Oct 26 — Rs. 25313

Oct 27 — Rs. 24453

Oct 28 — Rs. 15958

Oct 29 — Rs. 2338

In one week we saw the MTM gains peak at Rs. 25313 and then tumble down to Rs. 2338.

Such a situation looks bad, makes us think that we could have done something, booked some profit.

I wish life in trading was simple. With this strategy, we have made it simple but living through the trades and the emotions is never easy.

One must remember that all the profit over last 24 months was made by DOING NOTHING. Why should we think of changing now.

How the stocks moved from Friday Oct 22 to Friday Oct 29:

HDFCBANK — 1680.75 to 1582.85 ( – 5.8% )

ICICIBANK —- 759.30 to 802.05 ( + 5.6% )

KOTAKBANK — 2171.40 to 2031.15 ( – 6.4% )

With 2 out of 3 stocks losing big, the strategy has actually done well to add a little to the MTM profit.

Well, analyzing the numbers gives some consolation but giving back the gains still hurts.

The remedy — Forget about it. ups and downs are part of trading. Our aim is to stay profitable over a longer term and so far we are on the right track.

Enjoy the weekend.

Be back here again tomorrow for more insights about trading.

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.