History repeats itself.
We know that. But the repetition is good only if we are on the right side of history. Losing repeatedly is not something one likes to remember.
Today I am talking of history repeating from the trades of July 2020.
Let us first recount what happened yesterday.
BANKNIFTY made solid gains on the day. 1.35% is a good number.
For our trades, it was the ICICIBANK which was a clear outperformer.
Other two stocks gained but not more than the index.
With all 3 stocks being on the gaining side, the MTM position made great improvement.
A day ago it was (-) 11975.
It is a huge relief to be in this position though it is still a loss.
Once again the market has repaid our trust in doing nothing and let the market do what is best for us.
Traders have short memories.
Since I am having a documented record here on this blog that memory can be refreshed from time to time.
We found ourselves in similar situation in July 2020.
Went into a losing position. Recovered from losses. While waiting for the profit target, one good day made the difference. We came out successfully. ast year it was only one set of trades. This time we have already booked a profit and are dealing with the second set of trades.
The point I am stressing is that market rewards us when it is the right time and we have no role in choosing that time. From last July:
What do we do now?:
The readers know the answer.
We DO NOTHING.
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.