Trade blog for 30-Aug-2021

My First Passed Trade in BANKNIFTY(Options) after three consecutive fail.

Details:

Today BANKNIFTY was too bullish today with some consolidation in between. This was an effect of global market which was bullish on Friday due to Fed news of not increasing lending rates.

Today I made my first profit trade after three failed trade. Though I could have made much more money seeing the potential of the market today, I chose to be out of the market after a profit of around 800. Did follow my rule today (of not taking too many trades but still I took 5 trade today and most of it was profitable). I had less capital in my Angel account today so had to choose trades way out of the money.

MARKET OVERALL TODAY:


Choosing the money to invest:

Tried to keep it In the money but due to less fund had to go way out of the money so that I can afford the trade.

OPTIONS:
First Lot: 1 point profit. BANKNIFTY 35500 PE

Bought at 149 and sold at 150 as there was not much rise in this stock and I was already late starting the trade and it had already fallen. As per Voodoo sir I had to buy PE for very short period of time before market starts bullish pattern. The main reason of giving up this trade was shortage of patience which I get after seeing 1 min candles.

Learning: Be patient and don't keep moving from 5 min to 1 min chart as this makes you loose your patience.

Second Lot: 10 point loss. BANKNIFTY 35500 PE

Again entered the market with PE seeing the drop in PE at 9:32 just one min after exiting the same option 1 min before. Entered at 161 and exit at 151 taking a loss of around 250 bucks. Same mistake as above, moving from 5 min chart to 1 min chart and loosing patience. 


Learning: Being patient and waiting for stop loss before exiting the trade. Trusting your analysis.

Third Lot: 21 point profit. BANKNIFTY 35900 CE

Seeing the rise now entered into CE and waited till 20 point and exited as soon as I got this.

Learning : Could have waited more and earned a lot more points

Fourth Lot: 20 point profit. BANKNIFTY 36500 CE

Bought it for 111 and sold it at 131.


Learning: Good decision to be out after 20 points here as next high hit in third phase and waiting till that point in useless.

Fifth Lot: 4 point profit . BANKNIFTY 36500 CE

Again bought CE at 104 and sold it at 108 as this was literally not moving and loosing its value every second.

Learning: Could have waited more and earned a huge profit. Also do not enter in second phase of treading( 11:00 - 02:00).


Conclusion:

Overall profit of the day was around 800 including the brokerage. Around (800 - 5*50) = 550 bucks profit.

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.
5. No treading in Sideways Market
6. Watch 5 min chart and be patient.

Learning: 

Patience is the key to success. Trust in your hard work and be patient for you profits.

This could have made me more than my total capital invested today.

Thanks :)

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