Made a Loss of Rs. 2300

How I made a Loss of Rs. 2300 on Mar 9, 2020 – Let’s discuss here;

Traded Instrument

Weekly Index option, as we can see the below Screenshot from my Zerodha A/c ie;

    1. Index – Nifty Call Option
    2. Expiry – 12th March
    3. Strike Price – 11300
    4. 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.

Made a Loss

Reasons for Loss of Rs. 2300?

  1. Not sticking to Plan ( Plan is to get 8%-13% and close the trade but even after 18% return I didn’t closed it)
  2. Over Confidence ( Going against Trend)
  3. No Stop Loss ( Bad Behavior Buddy )
  4. Not Executing Rescue Plan ( Implementing Plan -B)
  5. Doing multiple things along with trade ( Not everyday is Yours)

Conclusion

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!

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