Life in the market can be very difficult. It is always a judgement call. When that judgement turns out wrong we suffer. The suffering becomes worse when we continue to be wrong continuously for few days.
NIFTY has gone up over last three days. Just when we were entertaining the thoughts about a mild reversal , the US markets went up by more than 2% on Tuesday. Our market is likely to follow the trend.
Euphoria for some and despair for others. We are in the despair category this time. Unfortunately both these feelings do not visit in equal proportion. Despair is a permanent settler whereas euphoria is a fleeting visitor. One has to learn to deal with both with equanimity.
This is what the SGX NIFTY looks like as I write. Not good for our trades but we have to go through the day. It is not going to be a pleasant experience but we have benefited from the benevolence of the markets big way in the last month. Now is the time to get a reality check.
Regular readers of these pages know that we have had similar experiences in the past with different results.
In June, it was despair for 18 trading days and we had just two days of sunshine on Day 19 and 20 which made the month profitable.
July was almost similar to the present situation. We were sitting on a profit of Rs. 122000 in first few days of trading and then gradually gave up most of the profit to end the month with a gain of Rs. 42000.
August is too recent. Nothing went right and we lost Rs. 100000.
Any of the above outcomes can happen this time and we shall try to avoid a repeat of August .
No new trades today.
Our day in the sun is not likely today. We shall wait for a new tomorrow .
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.