How I made a Loss of Rs. 2300 on Mar 9, 2020 – Let’s discuss here;
Weekly Index option, as we can see the below Screenshot from my Zerodha A/c ie;
- Index – Nifty Call Option
- Expiry – 12th March
- Strike Price – 11300
- Traded Quantity – 6000
Strategy to Initiate Trade
Nifty is at 10700 and all the Call Options were down by 90% and I thought I can make a quick 1-2 point move.
So, I placed a Order and in next 10 mins I reached 1 point above my Buy Price and placed a Sell Order for 2 points above my buy price and this is the mistake as far as this trade is concerned.
Reasons for Loss of Rs. 2300?
- Not sticking to Plan ( Plan is to get 8%-13% and close the trade but even after 18% return I didn’t closed it)
- Over Confidence ( Going against Trend)
- No Stop Loss ( Bad Behavior Buddy )
- Not Executing Rescue Plan ( Implementing Plan -B)
- Doing multiple things along with trade ( Not everyday is Yours)
Looking forward to not repeat these pitfalls and making sure everything goes according to Plan, if it doesn’t work then go for Plan – B. I’ll discuss what is my Plan – B in another trade blog.
Until then, this is Rushi. Happy Trading!