Got Stuck Need Guidance

#1
I made a serious mistake today as i am novice in trading,I tried to follow the forums and interpret it in my own way as I have zero technical knowledge.
I bought 3100 call at 98 and when i found that i made a mistake,i bought 2800 put at 152 and now stucked.Please guide me so that i can free my money with minimum or no loss.
Now PE 2800 is at 138
and 3100 CE is at 58.
i use ICICI direct and their tips are worst,please guide me where from you got those charts and also give me name of some books so that I can also start learning about charts and daily trades.
Thanks
Subrata.
 

TFL

Well-Known Member
#2
I made a serious mistake today as i am novice in trading,I tried to follow the forums and interpret it in my own way as I have zero technical knowledge.
I bought 3100 call at 98 and when i found that i made a mistake,i bought 2800 put at 152 and now stucked.Please guide me so that i can free my money with minimum or no loss.
Now PE 2800 is at 138
and 3100 CE is at 58.
i use ICICI direct and their tips are worst,please guide me where from you got those charts and also give me name of some books so that I can also start learning about charts and daily trades.
Thanks
Subrata.
Subrata_ind, Never follow tips.

You can be success by just learning the "Intraday MiniFLow" thread or "The 60min Flow" thread by Mr.Saint or such trading systems.
For basic knowledge to understand the above two trading systems..learn the "Teach a man to fishing" thread by Mr. Saint itself.

Options trading is more dangerous and need more calculations and attentions.
"Also, TIME will erode value of options"

Links:
Teach a man to fishing(You will also get the compiled doc/pdf version of all posts you need to learn, ask there): http://www.traderji.com/technical-analysis/7997-teach-man-fish-compilation.html

Intraday MiniFlow(New rules): http://www.traderji.com/day-trading-stocks/24071-going-intraday-mini-flow-312.html#post235209

The 60min Flow(Find the new rules post in the oct months postings by Saint...or ask there for compiled doc version of rules): http://www.traderji.com/equities/21903-going-60min-flow-589.html

Hari.
 
Last edited:

columbus

Well-Known Member
#3
First and foremost, do not venture into something that you do not know or understand. It is the easiest way to lose money.
Learn, study, research and practice and most importantly control your urge to trade.
Perhaps,you calculations go AWRY because of gap up/gap down opening,hence
better to close your positions even with MINOR loss.
 

AW10

Well-Known Member
#4
First and foremost, do not venture into something that you do not know or understand. It is the easiest way to lose money.
Learn, study, research and practice and most importantly control your urge to trade.

If ICICI's tips were of any use they would have been the most successful trading firm in the world. Nothing wrong is following others tips - but they should be backed up with your own study, research and convictions.
Otherwise, you can as well bet on horses - it is the same thing.

That being said, I am assuming these are November options. I am not giving you any tips - basically ideas. You have to discover what is best for you.

1) Be mentally prepared to lose all your capital - which is Rs 12,500 ( 152 + 98 multiplied by 50). Once you are mentally prepared that this is the maximum you are going to lose, you have taken the fear of uncertainty out of your thoughts. This will help you to mentally accept the loss and clear your thinking.

2) The objective is to sell the put when the markets go down, and sell the calls when the market goes up.

3) What is the bid-ask spread ? If there is a significant difference (Rs 10-15), the contracts are becoming illiquid and it will become difficult getting out at a favorable price.

4) If you hold the contracts till expiry, the Nifty should be above 3352 or below 2548 for you to break even. In my opinion 3352 would be difficult, whereas 2548 is very likely.

4) If the markets go down tomorrow, your put will gain value (and call will lose value) - consider selling the put. Another idea is to keep the PUT till expiry - this is like portfolio insurance. If the market falls by expiry, your PUT will gain value (while your portfolio has lost value).

5) If the market goes up, your call will gain value while the put will lose value. Consider selling the call at a better price if you get an opportunity.

6) If I were in your position, I would sell the call (if and when) the market goes up 1-2 days in row and get out. I would keep the PUT as safety against a market correction.

7) You are the only person who is your best guide and well-wisher. You have got yourself in this trouble, you must gather the courage and diligence to get yourself out.

8) If you are lucky, you might even make a profit. However, do not be tempted by greed - your objective is to get out of a bad trade. Perhaps you can make money, but be rational and not greedy.

Good luck.
Adheer.
Appreciate you have taken time to help newcomer. But please understand he is newbie.
You are suggesting him to Sell Options.. (pt 2 and pt 6). I am sure u understand the risk involved with Selling options.. It might be OK for you to sell (u have big enough acct or u know how to manage the risk).. But please do not suggest such Unlimited Risk, limited Reward strategies to novice.

Happy Trading
 

AW10

Well-Known Member
#5
I made a serious mistake today as i am novice in trading,I tried to follow the forums and interpret it in my own way as I have zero technical knowledge.
I bought 3100 call at 98 and when i found that i made a mistake,i bought 2800 put at 152 and now stucked.Please guide me so that i can free my money with minimum or no loss.
Now PE 2800 is at 138
and 3100 CE is at 58.
i use ICICI direct and their tips are worst,please guide me where from you got those charts and also give me name of some books so that I can also start learning about charts and daily trades.
Thanks
Subrata.
If you have made a wrong trade, then to correct that mistake, IMO, you shd close that trade first. Once u are back to senses, then take a new trade after you have done some analysis.

Before you risk your capital and donate it to prefessional, go thru the threads given by Hari. Plz go thru option education on "Learning Center" on CBOE dot COM site.

Many people have lost money in the mkt following others tip so don't join that group. Successful traders don't follow others tip.. they invest time in learning, and take their own decision.

Happy Trading
 
#6
I made a serious mistake today as i am novice in trading,I tried to follow the forums and interpret it in my own way as I have zero technical knowledge.
I bought 3100 call at 98 and when i found that i made a mistake,i bought 2800 put at 152 and now stucked.Please guide me so that i can free my money with minimum or no loss.
Now PE 2800 is at 138
and 3100 CE is at 58.
i use ICICI direct and their tips are worst,please guide me where from you got those charts and also give me name of some books so that I can also start learning about charts and daily trades.
Thanks
Subrata.
With nifty going to come down today, I'm sure you might break even or make profits today. But do keep the advice of seniors given above in mind before entering any new trade.
 

AW10

Well-Known Member
#7
Hello AW10,

He has already purchased the November 2800 PUT and November 3100 CALL. I am advising him is how to exit those positions by selling what he has purchased.

I am not advising him to sell short CALLS or PUTS. That would be too dangerous.
Thanks Adheer for clarification. And my apologies for misunderstanding you.
Hope readers also get the right message when they read your post.

Looking at other valueable comments from you, I knew that you would not recommend Selling option to a newbie.

Happy Trading.
 
#8
I also request you members to use less technical or cryptic language while posting because to novice like us technical s go over our head.Can anybody from an expert can start a thread where there will be list of all abbreviations and definition of things like pivot.I found mitasatyagit message very useful,he said on Monday that if today nifty crosses 3116 i am going to play long.

Subrata
 

TFL

Well-Known Member
#9
I also request you members to use less technical or cryptic language while posting because to novice like us technical s go over our head.Can anybody from an expert can start a thread where there will be list of all abbreviations and definition of things like pivot.I found mitasatyagit message very useful,he said on Monday that if today nifty crosses 3116 i am going to play long.

Subrata
Subrata_ind,

If you have visited the thread "Teach a man to fish" saint I have said in my first post of this thread you may not have such a post like above. Saint sir there presented everything...from the basics...even a child can understand it. The definition for pivot or anything is there in that thread. Download the compiled version of the thread and learn.

Also, my friend, I immediately like to tell you....to please stop taking other calls...It will only make you more and more bad.

It are read to cease all your trading activities and take some pain for atleast 1 month to learn the said 3 threads...then the fortunes will be yours or be ready to empty your whole account...

Sorry for using hard words...but it will be the truth...you will realise it soon.
Hari.
 
#10
Thanks everybody for your suggestion and help .I feel that i am blessed few days back when I joined Traderji.I havent seen anywhere so many good people working together and helping each other.
Subrata
 

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