Playing for profit

[Smart_trade]

yes ST,,,

Really lucky this time .. used the system which is not made for that is the reason for problem ...

un prepared to accept the below highlighted fact till 19th nov ...later after 19th Nov alarmed and did some damage control.. still left with 1500 lots 6400 CE and 1200 lots 6200 CE worthless..

Actually stock72, I did not want to say but as the topic has come, let me put some very hard and bitter facts . I dont know how many years you have traded the markets, but I am sure I have traded much longer than you so consider this as an sincere advice from a wellwisher.

Markets are not fergiving every time...sometimes they are ferocius and they kill trading careers,destroy families and even kill a person. I have known a very large traderfrien who was an operator and used to trade 1 to 1.5 Lakhs RIL position...had capital of over 1 Cr and he went on adding to his long positions and finally had to borrow from the pivate financers to keep the position....this continues and he made a loss of 2.5 Cr and finally committed suicide as the creditors were after him and market was crashing. He had jumped in a river bed from a bridge and was 10 feet deep in mud.I had gone to the police station and the hospital to claim his dead body and you know something ? in next 1 month market improved and he would have made small profit on his long positions, but at that time he was driven to the extremely step and the trading career and the family is destroyed.

Another trader I know came from other business, he made money and came to markets and he was overconfident...he also went on building long positions in TISCO and over 3 months lost over 1 Cr...that man has become a mental patient and is destroyed now.

One very close friend had huge positions in software boom period and had kept that position on outside badla. He told me that he had an Excel sheet and at one point he was in profit of more than 60 Lakhs...them markets crashed...some shares were on downside trigger and he just could not liquidate, so his financers forceliquidated and he lost all the money so much that he had to make his wife work and had problems paying his son's school fees...he had to liquidate his 1600 sq ft AC office, his 2 storied bunglow and 4-5 plots ....

Given the above cases to tell you how bad and ruthless the markets can be if we are overconfident....

Wish you all the very best for December and thereafter.

Smart_trade

 

[TraderRavi]

stock72 moral of the above story is dont buy the whole NSE, leave one-two lots for TP and TR also

 

[DanPickUp]

Actually stock72, I did not want to say but as the topic has come, let me put some very hard and bitter facts . I dont know how many years you have traded the markets, but I am sure I have traded much longer than you so consider this as an sincere advice from a wellwisher.

Markets are not fergiving every time...sometimes they are ferocius and they kill trading careers,destroy families and even kill a person. I have known a very large traderfrien who was an operator and used to trade 1 to 1.5 Lakhs RIL position...had capital of over 1 Cr and he went on adding to his long positions and finally had to borrow from the pivate financers to keep the position....this continues and he made a loss of 2.5 Cr and finally committed suicide as the creditors were after him and market was crashing. He had jumped in a river bed from a bridge and was 10 feet deep in mud.I had gone to the police station and the hospital to claim his dead body and you know something ? in next 1 month market improved and he would have made small profit on his long positions, but at that time he was driven to the extremely step and the trading career and the family is destroyed.

Another trader I know came from other business, he made money and came to markets and he was overconfident...he also went on building long positions in TISCO and over 3 months lost over 1 Cr...that man has become a mental patient and is destroyed now.

Given the above cases to tell you how bad and ruthless the markets can be if we are overconfident....

Wish you all the very best for December and thereafter.

Smart_trade

@ST

I think Stock72 doe's not take this post as an offend against him as what you posted are hard facts and the true. Absolutely agree with that. What ever systems and ideas we trade in any market is/are brought from time to time from the market to its extremes and tested to its extreme. We always have to keep that in mind. It has to be posted and told again and again and again and thanks to do it once more.

Take care / DanPickUp

 

[Smart_trade]

@ST

I think Stock72 doe's not take this post as an offend against him as what you posted are hard facts and the true. Absolutely agree with that. What ever systems and ideas are traded in any market are brought from time to time from the market to its extremes and tested to its extreme. We always have to keep that in mind. It has to be posted again and again and again and thanks to do it once more.

Take care / DanPickUp

Hi Dan, I dont know how he will take my post...but if he does not like, I will just delete the post and ferget about it.But I thought I must caution what harm markets can do as these are real life incidents .And all these traders were not new traders but still it can happen with over confidence..

ST

 

[stock72]

ST San,

your point carefully noted with high respect.
I went wrong from 5th nov to 19th nov.
but on 7th nov the trading capital assigned for nov already got locked. from there the money management kicks in ...start mobilizing a prescribed amount daily till 24th nov to manage and reduce the impact.

For Dec, before coming sat, all money will be with drawn from trading account and Leaving the trading account with 15% of money only. if need then start mobilizing with predetermined amount . the catch is , I cant transfer more than that per day, as there is a limit in online transfer . to alter that limit need to go India to the bank ..
so safer as of now . if felt danger then will introduce further banks in the transfer line, so that money will not reach trading account immediately and thus any hasty decision will be laid to rest .

Thanks for timing post and advise and felt happy as if we are in a safer place .
thanks .

this post on 7th Nov

my money management put me in trouble now ..need some money to buy CE now.. but to mobilize I need to transfer from one bank to other and then from there to trading account minimum 4 hours ..

Actually stock72, I did not want to say but as the topic has come, let me put some very hard and bitter facts . I dont know how many years you have traded the markets, but I am sure I have traded much longer than you so consider this as an sincere advice from a wellwisher.

Markets are not fergiving every time...sometimes they are ferocius and they kill trading careers,destroy families and even kill a person. I have known a very large traderfrien who was an operator and used to trade 1 to 1.5 Lakhs RIL position...had capital of over 1 Cr and he went on adding to his long positions and finally had to borrow from the pivate financers to keep the position....this continues and he made a loss of 2.5 Cr and finally committed suicide as the creditors were after him and market was crashing. He had jumped in a river bed from a bridge and was 10 feet deep in mud.I had gone to the police station and the hospital to claim his dead body and you know something ? in next 1 month market improved and he would have made small profit on his long positions, but at that time he was driven to the extremely step and the trading career and the family is destroyed.

Another trader I know came from other business, he made money and came to markets and he was overconfident...he also went on building long positions in TISCO and over 3 months lost over 1 Cr...that man has become a mental patient and is destroyed now.

One very close friend had huge positions in software boom period and had kept that position on outside badla. He told me that he had an Excel sheet and at one point he was in profit of more than 60 Lakhs...them markets crashed...some shares were on downside trigger and he just could not liquidate, so his financers forceliquidated and he lost all the money so much that he had to make his wife work and had problems paying his son's school fees...he had to liquidate his 1600 sq ft AC office, his 2 storied bunglow and 4-5 plots ....

Given the above cases to tell you how bad and ruthless the markets can be if we are overconfident....

Wish you all the very best for December and thereafter.

Smart_trade

 

[stock72]

-----------------------------------------------

 

[RAAMAKANT]

stock72 moral of the above story is dont buy the whole NSE, leave one-two lots for TP and TR also

Kasam se, AAP dono ka Jawab nahi. Hats Off to your Sense of Humour.

 

[stock72]

u can call me even a foolish gambler ... but I am happy for past 4 months as sitting in huge cash reserve ...

Your post defines you as a compulsive gambler..... not a system trader.

 

[Mr.Perfect]

why not with 100 rs option ? and 1000 points in a month is big deal with 2 lots..

The issue with trading 100 Rs. options is Delta, due to high premium initially, the 100 Rs options you can buy will be out of money options with delta less than 0.5. If the trade goes your way you can make money but if your trade goes against you and market reverses later (say after one week), this option will not recover much due to time decay and reduction in Delta. (my experience in Nov).

IMO, futures or deep ITM options are better for positional trading as these recover faster, but there is a risk of loosing more money than out of money options, when the position continues go against you or if there is a sudden crash.

 

[stock72]

ya .. u r correct .. in simple terms futures =~ ITM options provided premium is less...

The issue with trading 100 Rs. options is Delta, due to high premium initially, the 100 Rs options you can buy will be out of money options with delta less than 0.5. If the trade goes your way you can make money but if your trade goes against you and market reverses later (say after one week), this option will not recover much due to time decay and reduction in Delta. (my experience in Nov).

IMO, futures or deep ITM options are better for positional trading as these recover faster, but there is a risk of loosing more money than out of money options, when the position continues go against you or if there is a sudden crash.