Trade blog for 02-Sep-2021

Failed Trade in BANKNIFTY(Options)

Details:

Today BANKNIFTY was mostly trending up. Still could not get any money out of the market.

Today again I lost another 800 bucks in trade. 

MARKET OVERALL TODAY:

Choosing the money to invest:

In the money.

OPTIONS:

First Lot: 12 point profit. BANKNIFTY 36500 CE

Bought at 141 and sold at 153. Made some profit here. This was within one 5 min candle only so I was able to make some profit. Which was best I could have got from this trade as after I got out price went down for a while.

Learning: No strategy but still got out within the 5 min candle and made some profit of 300.

Second Lot: 51 point loss. BANKNIFTY 36700 PE

Entered from PE seeing the market going down and lost a lot in this trade. Entered at 126 and was out at 75. Which was partially a good decision as after that this PE kept going down.

Learning: Get out at SL.

Third Lot: 13 point profit. BANKNIFTY 36700 PE

Choosing the same PE again got some money out of this but not what was expected as this was out of money trade and moved so slowly. By choosing In the money of at the money I would have recovered the loss. in at 62 out at 75.

Learning : Good that I exited the trade else it would have fell.

Conclusion:

Tried using some strategy but could not get much out of it due to out of money trade.

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.

7. Follow treading strategy.

Learning: 

Treading strategy is a must if I want to get out some money out of market. Will try to find some pattern today in the chart and apply it tomorrow.

Thanks :)