Trade blog for 25-Aug-2021

My First Failed Trade in BANKNIFTY(Options)

Details:

Made a lot of mistakes today. Let's point each out:

1. Buying a lot of trade

2. Trying to recover from previous loss

3. Half knowledge full implementation

4. Focusing on a lot of trades

After a good opening BANKNIFTY became bearish. I tried applying SRI today but it did not workout for me well and lost around 2400 bucks to the market. 

Attaching contract note for reference:

Total brokerage alone was 360 bucks and others 200. Total loss was around 3K. :(

Choosing the money to invest:

Money choosing strategy is still the same. IN THE MONEY.

First Lot: 65 point loss. BANKNIFTY 35900 PE

I started early today as Market seems bearish, but It went at a high for a while and I was wrong as this was exact what market wanted me to do, think of it as bearish and invest money. As soon as I was in it started falling. I bought it for 315 and had to exit at 250

Second Lot: 33 point profit. BANKNIFTY 35900 PE

Seeing the bearishness again I entered at 321 and exited in around an hour at 355 making a profit of 800 bucks.

Overall performance of 35900 PE : Loss of 777 rupees.

After this loss I decided to wait for a while and see where market is heading.

Third Lot: 58 point profit. BANKNIFTY 35700 CE

Seeing the positive flow of the trade for a while I decided to get back in from CE and this was actually a good idea as it was 58 point rise from 160 to 218 and I earned 1400 from this trade. Overall profit was around 700 bucks. I should have been out now as I already crossed 500 which was my daily limit.

But no I shifted back to Nifty.

Fourth Loss: 27 point loss. NIFTY 16700 CE

As per my analysis there must be a raise in the stock making me profit in NIFTY, turned out to be wrong and lost around 1400 bucks to this trade alone making me in overall loss of 700 again. I should have been out now as this day was not working out for me, but no wait.

Fifth Neutral: No Gain No Loss. NIFTY 16700 PE

Seeing the above loss I thought NIFTY is going down and I should be a part of the fall, though this fall has already happened and I lost 1400 in my fourth trade today. Miraculously this didn't turn to be a nightmare and I was out at breakeven. But this had brokerage change which was making me think that I have added another 50 rupees loss in this trade, that was true but not to be thought at this time as this was impairing my judgment. I should have been out now as this was already a bad day trading. But lets wait more.

Sixth Loss: 19 point. BANKNIFTY 35700 CE

Lets move back to BANKNIFTY as this was moving up, ignoring the fact that this is degrading for last 2 hr. Bought is for 153 and sold it at 134. This was not bad as I have the capacity to make 500 risk. I lost around 500 in this trade. Making me a loss of 1900 bucks. I should have been out now but no.

Seventh Loss: 40 point. BANKNIFTY 35400 PE

Seeing the fall in BANKNIFTY, went back to PE, but after that it started to rise and I was in loss most of the time. Bought it at 107 and sold it at 68, making a loss of around 1000 bucks. Overall loss was 2900 by now, and I desperately needed to fix this as it was 1/3 of my current portfolio. I had to get some trade to reduce the loss now. 

Eighth Gain : 4 point. NIFTY 16700 PE

Moving back to NIFTY PE as there was a downtrend by now and I was in at 133 and out at a minor profit of 137. Making total loss 2700.

Ninth Loss : 12 point. NIFTY 16700 CE

As Nifty increased I went back to CE, In at 97 out at 85 making a loss of 600.

Over all contract of the day:

Conclusion:

Worst day trading, saw the fear of loosing money from so close, but more learning. I went to bed early that day so that I can be more relaxed trading next day.

Learning: 

1. Not more that 2 trade per day.

2. Focus on one trade and do your analysis before entering.

3. Loosing is OK till 500.

4. Don't try to trade if you have lost in two trades consequently.

5. Any gain greater than 500 is the end of the day trade.

Thanks :)

Note: This was written on 27-Aug-2021 as I was frustrated by loss today and had to sleep to recover and trade better tomorrow.