Saturday, December 3, 2011

Highest weekly Gain in 2.5 years

Today nifty witnessed highest weekly gain in 2.5 years. It was mainly the short cover rally that lead our market to this much high. European positive clue added some more fuel. There is one more expectation that there would be no rate hike from RBI.

On Trading front I made the following mistakes,
  1. I entered the market after booking loss (which I avoided on previous occasions)
  2. I go with 10 lot put buying in confidence
  3. I should have go with Call option buying as there was clear indications of bulls as soon my stop-loss triggered
Though I maintain no averaging policy but multiply my exposer with higher lot size. We are human and need to avoid such error. I felt after my mistake as if I am fighting a duel with Nifty, and did not want to accept the truth that it is not a day of bear thinking.
I am sharing my mind to show how fatal such errors may be in future
Our trade book is not so handsome as it was a day before, we need to built the same again with same patience.

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