Trade blog for 20-Aug-2021

My First Successful Trade in BANKNIFTY(Options)

Today was my first successful and informed trade in BANKNIFTY, after loosing around 7K in previous trades finally I was able to make 1500 today.

Details:

After market opening for 35146.50 which was more than 300 point below the previous day closing(19-Aug). Market was bullish for an hour 35300. From the last day international market I was sure that market will not take a major hit today. But had to wait to see how it will respond to US federal bank decision to increase the lending rates.

MARKET OVERALL TODAY:


After a good start it started to decline each cycle.

So I drew two lines between which market was moving.

Choosing the money to invest:

Since I am a beginner I had to be cautious while choosing at what money to invest. From my knowledge I knew that I had to be in the money to trade. So I was looking up to with BANKNIFTY 35100 CE and PE(PE was not in the money but somehow I wanted not to risk much so was keeping a track at exact opposite CE and PE).

BANKNIFTY 35100 CE was exact replica of  BANKNIFTY and BANKNIFTY 35100 PE was exact opposite of BANKNIFTY.

First Lot: 9 point profit.

After seeing the trend till 1 PM, I decided to invest in CE with 1 lot at 288 and was out at 1:30 PM at 297 making around 9 point as the market volatility was increasing and did not wanted to go for more target seeing the decreasing pattern for high in next cycle.



Second Lot: 53 point profit.

Since the market was contracting I though of going for 1 more lot in PE side. At 1:31 PM I bought another lot for 333 the trend till 1 PM, I decided to invest in CE with 1 lot at 288 and was out at 1:30 PM at 297 making around 9 point as the market volatility was increasing and did not wanted to go for more target seeing the decreasing pattern for high in next cycle.

Conclusion:

I was happy today as this was the first day I actually got something out of the market. I had not slept well for around 2 days and was learning every possible thing from YouTube. 

Thanks :)

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