So I would like to share a real story about trading which happened with myself
In 2007 I was very actively trading in ifci future and options, and I was brand new in futures and options trading so I had little fear of it and the markets, I hadn't experienced a big deal of shock in the markets and one of the main agenda was for me to buy ifci call option every month because ifci was looking for strategic investors and stock had started rally literally from 10 rs to near 70 rs or so in just 3-4 months or so, cannot remember exactly it may be 8-9 months too.
So this 1 month what I did was I was very bullish again and I bought 80 call options for rs 1 or so and I paid a premium of 1 lac rupees as it's lot size was 8000+......... So few days passed it kept see saw but didn't advanced at all and I began to be restless as my 1 lac rupees were at stake here and it could all go to 0
You must remember that I was having 0 knowledge of technical analysis and didn't have any idea what was going to happen at all, I was only watching the news flow so 1 day after going down to 60 - 70 paisa the call once again was at my purchase price or so, and being restless I decided that I wanted to reduce my risk to half........ And so I did sell half of my position and reduced my paid premium to 50000 rupees
But as fate would always have its own ways...... ...... One fateful day ifci jumped really hard..... Really really hard and and and.......... My 1 rupee call went to 12 rupees and I was so thrilled so happy that I converted my 50000 rupees to 600000 lacs in a matter of few weeks, I sold it all, yes I did, but same day I bought a more far ce by investing 50k again thinking that it will rise more.
I don't remember what happened to my new call options......... But the very next day there was another huge gain day in ifci and the same 80 call option which I booked profits @ 12 rs......... It was @ 25 the very very next day
Means had I waited for 1 more day I would have made 1200000 for my 50000 rupees investment......... And had I kept all 100000 rupees till that date I would have made 2500000....... Yes 25 lacs. But it wasn't to be
Not to mention I gave all of it and more in January 2008 crash....... Date was 22 January and 23 January