game I play

[12:38PM, 05/06/2015] jagmohan: many times i am not sure of market direction. i prefer to protect my capital at those junctions. i re-deploy the funds (re-enter the market) when i am reasonably sure of the direction/move. (not that i always get it right when i am sure, but atleast i try to enforce this self discipline by being in the market when i think i am reasonably sure, without faking it......self talk

[12:43PM, 05/06/2015] jagmohan: e.g. i know some down side left, but i am not sure whether it will be straight away (today) or after a small or good step up. i had around 170+ points to protect....so i stepped out with auto stop loss. am i now sure of upside.....not exactly....though i know (from options spread) that markets are likely to be in a volatile 300 odd points for next 2 weeks. i also, strongly feel that 8080-8090 or below is due.....so , i am waiting outside, waiting for a reasonably and honestly sure point to re-enter.

[12:43PM, 05/06/2015] jagmohan: lemme also share a game i play......

[12:55PM, 05/06/2015] jagmohan: i start with option worth rs.80-90.....then i let it grow to say 170 or 200 or even more (depending upon the surety of the move) and then get out. and when i re-enter, i deploy the same amount but in the nifty option which is at roughly the same point where i left.....eg. i just squared 8200put (bought @93) at 171. now, whenever i re-enter the market,whichever side, i will buy the call or put which will be 171 or around......then take it to 250,275,300 or whatever possible......the cycle will be repeated till it reaches to a level when i double or tripple the lots and accordingly decrease the option face value....eg. when this reaches say 500 with x lots, i may take 5x lots worth 100 face value......

[12:59PM, 05/06/2015] jagmohan: this way i keep going deeper in-the-money repeatedly and thus minimizing premium outflow......i also, tackle fear of loss better.....it becomes a game of point and not money. it helps in better accounting of money besides redeployment / plough back of funds. i end up playing just with the money earned and not "my own money". less fear results in lesser pressure and better decision.

[1:00PM, 05/06/2015] Mudraa Guru Mysore: JS, just a doubt, so 80-171 profits are also included in the second move from 171 ?

[1:00PM, 05/06/2015] jagmohan: yes

[1:00PM, 05/06/2015] jagmohan: jo jeeta....vapis table par.....

[1:01PM, 05/06/2015] jagmohan: and in case 93 becomes 53, i start with 53......if we have the capability we can convert 53 to 530 again......otherwise whats the point of even betting those precious 53?