Trade blog for 26-Aug-2021

My Second Failed Trade in BANKNIFTY(Options)

Details:

Today BANKNIFTY was bullish except for closing part where it went slightly down. So was everything else in the market, seeing the response from global market. US was positive and EU was slightly negative.

Today I made my second loss of around 800. Made same mistakes as yesterday. After being positive for a 1000 bucks I went back and traded making me cost 800 buck. Also today I tried other trades as well, was just experimenting with the cash trades. It did not turn well to me. So I will stick to BANKNIFTY from now on.

MARKET OVERALL TODAY:

Choosing the money to invest:

In the money.

CASH TRADE: Never to go due to very less margin and trade flow.

Seeing the dip in TORNTPOWER, RAMCOCEM and VEDL. Sold 20 lots of  each making a profit of 5 rs in VEDL and loss of 263 and 100 in RAMCOCEM and TORNTPOWER respectively.

OPTIONS:

First Lot: 30 point gain. BANKNIFTY 35700 CE

Bought at 91 sold at 122 making a profit of 750. I should have been out by now since my target of 500 plus was reached.

Second Lot: 20 point profit. BANKNIFTY 35700 CE

Seeing the rise again bought CE at 83 and sold at 102. Making a profit of 500. Overall I was at 1000 profit including the loss I was at in CASH trades. I should have been out by now, if not in last trade.

Third Lot: 25 point loss. BANKNIFTY 35700 CE

Again bought CE at 38 and had to see it seeing the fall at 13. Loss of 625. But still I was at 300 plus. I should have been out by now.

Fourth Lot: 43 point loss. BANKNIFTY 35700 PE

Seeing the fall in trade went back to PE, waited for long time after buying it for 123 to get the result. At last system had to cancel it at 79 at around 3:22. Making a loss of 1000 rupees.

Conclusion:

Overall loss is around 800 today excluding the brokerage. Same conclusion as yesterday.

1. Earn profit of 500.

2. not more than 2 loss trades.

3. If two trades cannot make you 500, you should not trade anymore.

4. 500 loss is max.

5. Focus on one trade BANKNIFTY only for now.

Learning: 

Market is rude and it is looking for greedy people, please play safe if you have to play long.

PS: Think form opposite perspective as well before putting the money in any trade.

Thanks :)