After the heady cocktail of a huge profit last month, the October series was like a glass of plain water. We had a bubbly soda in the beginning in the form of HINDPETRO PUT 240 trade. That trade carried us through the month.
Any profit is a profit and one must accept it gracefully.
Out of 10 trades, only 3 trades made money. Not a very good strike rate but profitable. In fact, our profit came down from much higher levels. Same thing happened in July Expiry. We take what the market gives us.
One reason was the high premiums paid to buy the options.
Second reason was that we stopped looking for new trades sure in the belief that we can not lose in this month because of one very good trade. No effort, no reward.
We learn our lessons and move on.
Since May 2018, we now have 5 profitable months out of 6. A real confidence booster.
Number of successful trades are 34 out of 86 and overall profit nearly Rs. 585000.
Let us hope that the journey continues in the same vein.
Comments
LN Singh October 29, 2018 at 8:45 am
Looking forward to your guidance
ReplyAjay Kumar Bysani October 30, 2018 at 7:01 am
Is there a WhatsApp group for this? If yes, could you send it to me, please?
Replykvr October 30, 2018 at 10:58 am
message 8275517108
ReplyKV Rao October 29, 2018 at 4:58 pm
Just thinking, what if we built in some Rules to our trading system.
Idea is that in 30 days a lot can happen. So we should not just buy and pray God.
Modify strategy based on change in situations. However, this strategy will not give super profits like we got in September.
For example, our October strategy gave following returns with modification of Rules
Rule_1 : Exit when in 100% profit. (Enter lower strike price)
Rule_2: Exit when 50% loss.
Rule_3: Reverse trade, if situation changes (Example Close ITC put, Buy Call)
Rule_4: Reenter closed trades on correction.(Be prepared for Multiple trades in same stock)
HNIs with surplus funds can do following:
Start with higher no. of lots and exit 50% at 100% profit and carry on balance. (No loss strategy)
Alternately exit current strike price and enter lower strike price.
Follow debit spread strategy. i.e After Put Buy, sell further lower strike Put(Limited Profit, Limited Loss)
Following is modified table for October trades
ReplyI am not able to place image here, will post in WhatsApp group
admin October 29, 2018 at 6:06 pm
Thanks for sharing.
ReplyIf we exit at 100 percent profit, we are not using options as a right tool of trades. We shall miss the types of profit we had in September.
If trades go wrong, we lose 100 percent. We need few trades to deliver more than 200-300 percent.
Let us not think short term and get worried with every small drop in profit or minor loss.
We have seen that even with 34 right trades out of 86, we have a profit of 585000 in 6 months.
Such a profit is not possible if we try to control the profits.
Losses when they come look bad but that is the price to be paid for being wrong.
We just have to work a little more and let the market do what is best for us.
Cheers.
KV Rao October 29, 2018 at 6:54 pm
Thanks Sir
ReplySubramanian TN November 8, 2018 at 8:17 pm
In the p&l table sbin is cited as 6600 profit. Whereas is it not 9600 profit? Or was that excited early?
ReplySubramanian TN November 8, 2018 at 8:21 pm
Happy Diwali pramod ji…..
Reply