What a day for the market.
Even as Trump and Biden kept fighting with small leads the market made a decisive move and breached 12000 fair and square and settled above 12100.
I have stopped watching business channels for quite sometime but am sure that the talk would be about all time high by next week. Diwali day brings on that kind of sentiment to the market.
Market may go wherever it wants to go. The fact that remains unchanged is that most traders do not make money.
We were struggling with a loss of Rs. 56000 just two days ago with this set up of trades. Two days brought some cheer to the trades and the closing position yesterday was:
A big relief.
Now we wait for the profit to trickle in. Again, that is for the market to give. We have already done our part.
We wait with the trades.
Past Summary:
For the benefit of those readers who missed out earlier posts, we had begun this series in May 2020 and stopped after 4 months.
This month is the revival of the series.
Past Results:
In August Series, there was a very small profit of Rs. 8273.
In 4 months, the profit came to Rs. 147959.
Now that we have resumed the series, we shall find out how it works out.
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
Shrinivas November 6, 2020 at 10:10 am
Sir,
Can same strategy can be worked out in downtrend market.. Like selling call & buying nifty call. or this is best suited with puts.
ReplyPramod Kumar November 6, 2020 at 2:26 pm
The strategy is based on two facts:
Over a period of time good stocks move up.
A good portfolio out performs the index most of the time.
Our concern is what happens when stocks do not move up. In that case, relative out performance with respect to index will take care of any likely loss.
Otherwise, there would be some loss. Loss can not be ruled out entirely but over a period of time it should be as profitable as the Money In The Bank series.
Cheers.
Reply