Escape's Options Trading Diary - Phase 2

[prakash2010]

SL hit exit @134, loss of 10 points, less brokerages.

My sincere advice.
options have the power to wipe out your capital completely. Be careful.



As soon as market opened, the main trend was up and target was 5600.

Fii s were horribly selling puts and you are buying puts.

1. 1st blunder,you gave your valuable 2000 rs as brokerage(without other charges) to rksv.

instead you should have gone for rkglobal-rs 9 per lot or any other cheap brokerage..

you have to recover the brokerage first.

Then you have to start earning profits. All the best.

 

[ganesh71]

My sincere advice.
options have the power to wipe out your capital completely. Be careful.



As soon as market opened, the main trend was up and target was 5600.

Fii s were horribly selling puts and you are buying puts.

1. 1st blunder,you gave your valuable 2000 rs as brokerage(without other charges) to rksv.

instead you should have gone for rkglobal-rs 9 per lot or any other cheap brokerage..

you have to recover the brokerage first.

Then you have to start earning profits. All the best.

Hi prakash2010,
can you pls tell us where and how to see FIIs activity (during market hours or EOD)?

Thanks

 

[augubhai]

Escape,

Have you had a look at kiranjakka's threads?
http://www.traderji.com/derivatives/72840-trade-options-data-part-2-a.html etc.

If not, please go through them. They try to analyze market bias based on options data. The bias may not be tradeable intraday, but will give you a new perspective.

 

[Jeareh]

Hi Escape,

Again you made same mistake of going long in put when the market was in green. Y'day from the morning there was no any sign of reversal. Heavy inflows was seen from FII. Never trade against the trend. Y'day NF pre open was 1.71% up. I think this was very rare case. This was a very strong signal for going long. Sometimes we have to use the logic rather than following TA, but not all times.

Happy Option Trading.

 

[escape]

My sincere advice.
options have the power to wipe out your capital completely. Be careful.



As soon as market opened, the main trend was up and target was 5600.

Fii s were horribly selling puts and you are buying puts.

1. 1st blunder,you gave your valuable 2000 rs as brokerage(without other charges) to rksv.

instead you should have gone for rkglobal-rs 9 per lot or any other cheap brokerage..

you have to recover the brokerage first.

Then you have to start earning profits. All the best.

Hi prakash2010, thank you for your post and concern.
I completely agree with view that Options trading has potential of wiping out capital, if risk is not managed.

Regarding RKSV, after going through forum and lot of consideration, I took decision to go for RSKV. With start of this thread, I started using RSKV and NOW.

I'll wait for sometime to see result before I decide something else.

Yesterday, yes first trade was wrong decision, that does happen.
Second trade was ok, it was my fault not to exit position at the right time (it almost went 10 points above my buy price, but I didn't trail stop loss above for some reason).

Thank you.

 

[escape]

Hi Escape,

Again you made same mistake of going long in put when the market was in green. Y'day from the morning there was no any sign of reversal. Heavy inflows was seen from FII. Never trade against the trend. Y'day NF pre open was 1.71% up. I think this was very rare case. This was a very strong signal for going long. Sometimes we have to use the logic rather than following TA, but not all times.

Happy Option Trading.

Jeareh, actually first mistake lead to second one. Although second position was correct, but I didn't exit when I should have been.

Also I have Friday syndrome that market should be negative ... that put me pressure emotionally to go for PUT early in day. It was not TA but more of mindset issue yesterday. Henceforth, I will try to avoid or do less trade on Fridays unless I change my mindset.

Thank you again for thoughts.

 

[escape]

Here is log as of last session.

Log:
NIFTY 27Sep12 PE 5700.00 (B)200 @ 143.23 (S)200 @ 132.00.00 (P/L) -2246.00 (R) assumption of reversal

Result:
After deducting all charges: Rs -2,294.38

Capital Status for the current month:
Exact Initial Capital: Rs. 45,000/-
Current Ledger balance Rs. 41025.09 (-3974.91)

Learning/Remark:
My first trade was absolutely against market. Although second trade was good, but didn't realized it at right time. Need to come out of Friday Syndrome of assumption that market will go down in later part of day.

(R) = Reason for trade

 

[soft_trader]

Also I have Friday syndrome that market should be negative ... that put me pressure emotionally to go for PUT early in day.

Hi escape,

Always remember that there are no such syndromes in the market. These words such as "Black Friday, Golden Monday, etc. etc" are only for those TV ANCHORS These are all bakwaas. Those TV anchors/analysts are paid for that bakwaas.

Always go with the trend, never think that, "Oh this market has gone up so much, this can't go up any further. Or, market can't go down any further and it looks oversold". Traders must follow the trend, whatever & the trend may be. This is the only thing what I have learnt in my trading career.

Just my two cents. Happy trading :thumb:

 

[escape]

Bought Nifty 12SEP2012 CE 5500 @ 147.00, SL 136.00, CMP 147.45

 

[escape]

Bought Nifty 12SEP2012 CE 5500 @ 147.00, SL 136.00, CMP 147.45

1 lot exit @ 150, SL 149, CMP 150.45