Augubhai's notes - Smarts, Guts and Luck

[augubhai]

u r very fast and looks like mnging a good amount of capital very well ....

Not sure about very well.... but getting better, i guess.

 

[augubhai]

Been analyzing the week that was...

Mainly focused on the Chase Zone. I feel that if I can learn to handle these zones, the rest of the day will matter less.

I have marked a couple of Chase Zones for each day, though there were more.

 

[augubhai]

Got to work on this "Add" or Pile-on" business. My adds are mostly pile-ons - that means, when I add I usually double or more than double my existing position. So the impact of that last add is always big.

Advantages of adds:
1. Give me additional profits when I get them right
2. I can scale-in slowly, and take minimal risk on my initial position
3. Allows me to dream. One of my dreams is that I get 1 move with all adds right, and pile-on my full trading capital in the move. And then the market just zooms in my direction, and the money multiplies x multiplies x multiplies x multiplies..... Wow!!

Disadvantages:
1. I almost never book profit on the last add... which is usually the big one. That add is only there to pull down my profit. (But you know, the add before that was the last add a few seconds back)
2. Adds force me to tighten my SL, and sometimes exit early from good move.
3. Difficult to manage multiple adds. If the move is quick (which is when i add more), I am sometimes clueless about the current position including adds.

Need to put thought on this add business.... should I minus the adds from my trading. Probably be thinking about that this weekend...

So here's what i feel about the "add" business...

Last week was a good trading week with multiple Chase Zones. These are zones where the price moves quickly, and i try to pile-on and hope for a profitable exit.

Chase Zones are zones where my fear and greed are maximum. I am greedy enough to risk big adds that can turn profit into loss, but am also scared enough to keep tight SL's that cut out my chances of big profit.

Chase Zones are slog overs where i have to score big and not lose wickets!! Did not work for me last week - adding to position and at the same time trying to exit position...

At this point I am thinking... maybe, I should take bigger initial position, and go slow on adds. That might keep me calmer in the Chase Zones. Keep same risk at initial entry - so instead of keeping a 2-4 points SL for the initial entry, I will keep SL at 1 point or lesser...
It's like you hit big in the initial overs, so no need to work so hard in the slog overs, especially if you have wickets in hand!!

but the disadvantage here is that while i may reduce adds, I might end up taking too many initial entries...

There are still a few hours to go for tomorrow's trading, and my thinking can change. I can almost predict that in the first Chase Zone that occurs tomorrow, all analysis will go out of the window.

 

[TraderRavi]

last two weeks leading to budget should give big moves to option buyers....

 

[augubhai]

first trade

5100CE - long at 51.1, SL 50.05

 

[augubhai]

first trade

5100CE - long at 51.1, SL 50.05

Add at 53.1, SL 52

 

[augubhai]

Add at 53.1, SL 52

Add at 53.64, SL 52.7

 

[augubhai]

Add at 53.64, SL 52.7

Bad exit. out at 52.89. MTM +0.06 (was +2.00% at one point)

 

[augubhai]

5900CE - long at 55.5

 

[augubhai]

5900CE - long at 55.5

out at 53.1. MTm -0.44%