S o s

How many of you had faced similar crisis?

  • Overcame crisis and profited

    Votes: 0 0.0%

  • Total voters
    2

RS2330

New Member
#1
Fellow Traders

Please help me find a solution to this Dilemna - wherein I believed implicitly that the Bulls shall rule NIFTY forever when it attained a golden great figure of near 8622 - I purchased 4 lots of NIFTY8600CE at 85.65, 4 lots at 81.00, 4 lots at 78.00, another 4 lots at 73.00 still another 4 lots at 58.45 and yet another 4 lots at 38.65 in a rush to average my stocks totalling to 600 pcs (24 lots in all to average at 69.15 ) but alas the might of the Fall to today's crunch at 8100, 14;52hrs totally devastated me when my stock currently sold at Rs.2.70. Also I had purchased SBIN 810CE at Rs.20.00 and current price shows a measly Rs.4.00. Will anyone help me urgently before Friday (19-12-14) by offering sane advice as to how I can overcome my current losses!!!

Regards
 

manishchan

Well-Known Member
#2
Fellow Traders

Please help me find a solution to this Dilemna - wherein I believed implicitly that the Bulls shall rule NIFTY forever when it attained a golden great figure of near 8622 - I purchased 4 lots of NIFTY8600CE at 85.65, 4 lots at 81.00, 4 lots at 78.00, another 4 lots at 73.00 still another 4 lots at 58.45 and yet another 4 lots at 38.65 in a rush to average my stocks totalling to 600 pcs (24 lots in all to average at 69.15 ) but alas the might of the Fall to today's crunch at 8100, 14;52hrs totally devastated me when my stock currently sold at Rs.2.70. Also I had purchased SBIN 810CE at Rs.20.00 and current price shows a measly Rs.4.00. Will anyone help me urgently before Friday (19-12-14) by offering sane advice as to how I can overcome my current losses!!!

Regards
There is no such rules.. if you follow such rule, market will only make you fool. Nothing runs for ever neither up nor down.. !!!!

Why are you buying calls in falling market and on the top when expiry is so near ?? It was undoubtedly a recipe for disaster. I assume, you had either no strategy in place or the strategy you have isn't aligned to the trend. Time to worry about dt my friend more than the money you have lost. Look back to find out what was the reason and work on dt.. !

BTW.. ur mind is currently thinking of trying to recover losses.. and trust me if you do nything, you will only lose again. So hold on.. dont trade again..find out what went wrong.. !!

All the Best !!
 
#5
Fellow Traders

Please help me find a solution to this Dilemna - wherein I believed implicitly that the Bulls shall rule NIFTY forever when it attained a golden great figure of near 8622 - I purchased 4 lots of NIFTY8600CE at 85.65, 4 lots at 81.00, 4 lots at 78.00, another 4 lots at 73.00 still another 4 lots at 58.45 and yet another 4 lots at 38.65 in a rush to average my stocks totalling to 600 pcs (24 lots in all to average at 69.15 ) but alas the might of the Fall to today's crunch at 8100, 14;52hrs totally devastated me when my stock currently sold at Rs.2.70. Also I had purchased SBIN 810CE at Rs.20.00 and current price shows a measly Rs.4.00. Will anyone help me urgently before Friday (19-12-14) by offering sane advice as to how I can overcome my current losses!!!

Regards
Hi,

Not sure whats your previous trading experience and trading style but the only way you can recover your losses is by making profits. And for making profits, remember these 3 cardinal rules:

1. Always cut your losses short, know a stoploss before you enter the trade and stick to it. For option traders this is the number one rule. Never average a losing option trade as you are in a situation where both market direction and time is working against you.

2. Have a profit target in mind and book profits when its hit (you can have profit target 1, profit target 2 etc and keep booking partial profits when they are hit). You cant hold options forever.

3. Trade based on your system and not your beliefs.

Cheers
SH
 
#6
Sorry to hear about your loss but can only console you by saying that we have all passed through this stage and learnt what not to do while trading the hard way.

Here is what I feel you should note

1. Sell all your loss making options no matter what ever the price / loss you may face. even if you are able to recover only 5% of your original investment and lose 95%, at least you have saved 5%

2. Get your strategy for entry and exit fixed. You should know BEFORE YOU ENTER A TRADE when you need to book profit and when you need to exit with a loss

3. Limit your trade quantity in such a way that if the Stop loss is hit, your risk is maximum 2% of your net capital at the time of the trade.

4. Your potential gain must be atleast double the potential risk.

5. Depend on your own knowledge and expertise to enter into a trade. If you feel you lack these, then first look to get them (especially Risk management and Money management)

Forget this loss and consider it as tution fees you paid to the markets

Cheers
Shiva


Fellow Traders

Please help me find a solution to this Dilemna - wherein I believed implicitly that the Bulls shall rule NIFTY forever when it attained a golden great figure of near 8622 - I purchased 4 lots of NIFTY8600CE at 85.65, 4 lots at 81.00, 4 lots at 78.00, another 4 lots at 73.00 still another 4 lots at 58.45 and yet another 4 lots at 38.65 in a rush to average my stocks totalling to 600 pcs (24 lots in all to average at 69.15 ) but alas the might of the Fall to today's crunch at 8100, 14;52hrs totally devastated me when my stock currently sold at Rs.2.70. Also I had purchased SBIN 810CE at Rs.20.00 and current price shows a measly Rs.4.00. Will anyone help me urgently before Friday (19-12-14) by offering sane advice as to how I can overcome my current losses!!!

Regards
 

mastermind007

Well-Known Member
#7
Fellow Traders

Please help me find a solution to this Dilemna - wherein I believed implicitly that the Bulls shall rule NIFTY forever when it attained a golden great figure of near 8622 - I purchased 4 lots of NIFTY8600CE at 85.65, 4 lots at 81.00, 4 lots at 78.00, another 4 lots at 73.00 still another 4 lots at 58.45 and yet another 4 lots at 38.65 in a rush to average my stocks totalling to 600 pcs (24 lots in all to average at 69.15 ) but alas the might of the Fall to today's crunch at 8100, 14;52hrs totally devastated me when my stock currently sold at Rs.2.70. Also I had purchased SBIN 810CE at Rs.20.00 and current price shows a measly Rs.4.00. Will anyone help me urgently before Friday (19-12-14) by offering sane advice as to how I can overcome my current losses!!!

Regards
In trading parlance, "You've attempted to catch a falling knife by its blade...".

Fortunately for you, you were in options so loss is 50K! I don't know your investment appetite but person buying 24 lots of Nifty is not timid or newbie!!
Unfortunately for you, you are in options and time-decay is going to act rapidly against you, the buyer of options!!


One rule that I have made is "Never average more than three times".

Naturally, Market Mataji only taught me this rule and I am merely sharing it with you. I too have had my own "knife catching attempts" ...

The way that the market has turned today after 12 noon, you still might be in luck!!

It is very improbable, at this stage, that NIFTY may climb back to 8700 for you to have slice of profit in NIFTYCE8600!

If bulllish sentiment holds tomorrow and on friday, go ahead and buy few lots of CE8000 or CE8100.

Also, last but not the least, if you are addicted to averaging, look up on google for martingale theory ...

But, be warned, "martingale theory" is sane as well as insane and that too at the same time!!
 

mastermind007

Well-Known Member
#8
Fellow Traders

Please help me find a solution to this Dilemna - wherein I believed implicitly that the Bulls shall rule NIFTY forever when it attained a golden great figure of near 8622 - I purchased 4 lots of NIFTY8600CE at 85.65, 4 lots at 81.00, 4 lots at 78.00, another 4 lots at 73.00 still another 4 lots at 58.45 and yet another 4 lots at 38.65 in a rush to average my stocks totalling to 600 pcs (24 lots in all to average at 69.15 ) but alas the might of the Fall to today's crunch at 8100, 14;52hrs totally devastated me when my stock currently sold at Rs.2.70. Also I had purchased SBIN 810CE at Rs.20.00 and current price shows a measly Rs.4.00. Will anyone help me urgently before Friday (19-12-14) by offering sane advice as to how I can overcome my current losses!!!

Regards
Today's overall pattern is Spinning Top with increasing volatility

Read more of spinning top at
http://www.investopedia.com/terms/s/spinning-top.asp

Indecisiveness may give you chance to reduce the losses.