Burnt my hands in derivatives

#1
Earlier, I have been investing in cash, keeping the stocks for few months and then selling those as and when I needed cash. Recently, I got pulled into this business where I thought I can make some quick bucks by following one of the blogs calls. I observed his blog for few days before taking a plunge. I started with one NF lot without SL (my mistake) in Aug but that never reached at the price of my call, so booked loss of 350 points at expiry. To be honest, there were 2-3 intraday calls which went right along with 4-5 missed calls, but the profit was well eaten by those 4-5 missed calls.

Then I got into Sept series and shorted a NF lot at 4590 in first week itself (i think) and kept on buying some put calls as everybody I read on MMB forum was bearish. Well this turned out to be more disasterous and today I had to cover NF lot at 4985 as I could not take this further as my remaining margin does not allow me to do so, making loss of approx 400 points this time. My puts which were bought for total of 550 points (total) has a remaning value of 80 points today, so total loss so far is 1220 points for last 45 days.

What I have learnt so far:
a. NF Future - only for intraday.
b. Intraday without a Stoploss is a crime.
c. Dont follow any blog.

I would better off not to do intraday but surely I would like to cover my losses. Could you share your wisdom and experience which I can use to cover my losses ?

Regards

Willy
 
#2
What I have learnt so far:
a. NF Future - only for intraday.
b. Intraday without a Stoploss is a crime.
c. Dont follow any blog.

I would better off not to do intraday but surely I would like to cover my losses. Could you share your wisdom and experience which I can use to cover my losses ?

Regards

Willy
You seem to be a beginer. Don't worry. I too was like you when I began trading. At that time, I had burnt not only my fingers but also my a**. :D

Not only intraday, but any trade without stoploss is a crime.

Donot follow any one else's call. This is restricted not only to blog calls but all types of "free" as well as "paid" calls. Why, because you donot know on what basis the call is made and even less you know is when to get out.

Take your time. Learn how to trade.
 

spiritunit

Well-Known Member
#3
I am also trading in options for couple of months now and never invested big amount, so whatever happens (profit or loss) it won't burn me much. Whenever we enter a new format of trading better invest with small amount of money (even I won't recommend paper trading) as we will learn some basic things on that time and the best way is to analyze and decide ourselves while trading and not to blame someone else.
 

columbus

Well-Known Member
#4
What I have learnt so far:
a. NF Future - only for intraday.
b. Intraday without a Stoploss is a crime.
c. Dont follow any blog.


I would better off not to do intraday but surely I would like to cover my losses. Could you share your wisdom and experience which I can use to cover my losses ?

Regards

Willy
Have a setup ,and follow it .Since the setup itself modifies
with the trend ,you follow the trend if you follow the set up.
 

bunny

Well-Known Member
#5
I am surprised why you put your hands into Nifty future instead of mininifty(small sized nifty future).

Lot size for mininifty is only 20 and margin is around 12 K.
 
#6
Me too, Had 4 lot of 4900 put at an avg price 75 and covered
all 4 lot at 35.

this is my venture into option and burned my finger and lost all
money made for 1 month by swing trading in cash.




with respects
 
#7
Have a setup ,and follow it .Since the setup itself modifies with the trend ,you follow the trend if you follow the set up.
Exactly, I am looking for a setup with which I can make close to Rs 500 a day. Dont want to be glued to screen all the time. I have no knowledge on doing TA so I was relying on a blog.

I am surprised why you put your hands into Nifty future instead of mininifty(small sized nifty future).
I agree that playing with big nifty was not a good idea to start with. Will start next month series with one small nifty lot and play for 25-30 points a day. Can someone advise where & how to start ?
 

bunny

Well-Known Member
#8
^Learn technical analysis. That a very good to start strong. Of course, don't expect that you will mint money once you finish reading a book on TA.
 

Placebo

Well-Known Member
#9
last october i was in the same spot where you are right now...so i pretty much know what your are going through ...i found a way to kick back and i hope you do as well..

Cheers
 

sudoku1

Well-Known Member
#10
What I have learnt so far:
a. NF Future - only for intraday.
b. Intraday without a Stoploss is a crime.
c. Dont follow any blog.

I would better off not to do intraday but surely I would like to cover my losses. Could you share your wisdom and experience which I can use to cover my losses
a. NF Future - only for intraday.
wrong.....the best of this stuff that a trader or invstr can do & the most wonderful thing i like from around the world from fin mkts is POSITIONAL TRADE.....
now provided> u have a scientific stoploss & lastly......following this line STRICTLY
positions can b kept open for 365 days round the year in any mkt condition.:)
 

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