Trade blog for 27-Aug-2021

My Third Failed Trade in BANKNIFTY(Options)

Details:

Today BANKNIFTY was bullish and in a zig-zag  form. So was everything else in the market, which was opposite of US and EU market which closed in negative last night.

Today I made my third loss of around 800. Made same mistakes as yesterday. Being over ambitious and not following my own rules is making me these losses every day. After three consecutive loss I have decided not to trade for a while now until I have some more knowledge of the market. Thinking of taking a free course from YouTube about basics of share market, will keep you posted. 

After being positive for around 300 in my second trade I had to go back and trade to increase my profit which costed me money. 

MARKET OVERALL TODAY:

Choosing the money to invest:

In the money for first trade then went to out of the money to recover the loss. It worked for me in my second trade, but eventually costed me in the end.

OPTIONS:

First Lot: 16 point loss. BANKNIFTY 35500 PE

Bought at 291 and sold at 275 since it hit my SL of 271 and I had to start safe. This was a right decision

Second Lot: 24 point profit. BANKNIFTY 35900 CE

Seeing the rise again bought 35900 CE, since I did not had enough money to go in the money so went for out of money at 143 and sold at 167. Making a profit of 625. Overall I was at 200 profit. I had to stop by now as per rule, but again seeing the banknifty chart made me do some more trade.

Third Lot: 4 point profit. BANKNIFTY 35500 PE

Again bought PE at 226 and sold it at 230 making 100 bucks. Had to exit now for sure as I was already in 300 profit. This was the day best we could have got from this trade.

Fourth Lot: 17 point loss. BANKNIFTY 35500 PE

Bought it for 242 and had to sell it at 225 making a loss of 425 bucks making whole account in negative 100. I should have been out by now for sure as I was not able to handle market by now.

Fifth Lot: 27 point loss. BANKNIFTY 35900 CE

Bought it for 179 and had to sell it at 152 making a loss of 675 bucks making whole account in negative 800. I had to force myself and close trading as I could not take anymore loss for the day.

Conclusion:

Overall loss is around 800 today excluding the brokerage.

Trade rules:

We will stop trading if one of the below criteria meets:

1. Market is not performing as per my expectation in first one hour.

2. I have done two trades.

3. I have lost 500.

4. I have gained 500.

Learning: 

Not learning from mistakes making me do the same mistake over and over again. 

PS: Stick to your rules and focus on learning not profit.

Thanks :)