Wednesday, September 10, 2014

never try to recover the loss

dear A

u are holding 8000pe lots @ 95
right now, it is around 33 (loss of 62)

now, u have to recover 62 points, that's obviously ur first aim

well, here is my first, off-the-cuff frank advise

"never try to recover loss, try to gain if there is a possibility

that gain will automatically bridge/erase/cover the loss

but never trade with negative mindset

that fills u with nervousness/fear/anger/frustration leading to wrong decision and lot of stress

if a loss has come, it won't go away just because u need it to

prayers don't work in the market because god's men are on both side of the trade, including those of operators!

while a loss can't be erased per se, profit can definitely come

assume u were not in loss, then what would u have done?

if u knew it might fall, u might take fresh short position
or if u knew it is likely to rise, u might take fresh long position

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so, if i were in your situation
i would square 8000pe's straightaway (money saved is money gained)
tomorrow morning i might get atleast 30 bucks for it.

putting 35 bucks more, i would have bought 8100pe lots

right now
8000pe=33+
8100pe=62+
8200pe=111

if (and everything depends on this if)
the market falls another 100 points

8000pe will become=30+ (surprising)
8100pe will become=100+
8200pe will become=170+

ur loss of 62 can be recovered only by 8200pe
that comes with condition of "risking"/putting more money on the table!!!

alas, there is nothing called free lunch!

sorry, for ur loss. take it, as of now, as price u pay for learning (i  used to assume losses as fees for my MBA (Trading) from the University of Operators!

pardon my language!

best wishes!!!

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alternatively,
if market opens gap down tomorrow, or slipss too fast at opening, u gain some crucial points
i expect market to be volatile thereafter till expiry, which is quite away
u will get opportunities to make money
just need to keep ur calm
such experiences help in thickening of skin (which lady traders can't avoid) which helps u gain with less pain

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