My Experience on 24th July' 2008

Trade No - 1 : Taken bearish view looking at all through negative bias of Share market. IT Sector was negative and INFOSYSTCH broke 1500 also. Went short at 1526 (avg) viewing the scrip at pullback rally. But, it made turnaround. Stoploss should have been immediately above 1530.
But, I waited for 1540 for final stoploss and incurred unnecessary losses in this trade.

1. Mistake (1) : Should have been waited for breaking 1505 again before taking/ increasing short position.
2. Mistake (2) : Stoploss must have been at 1530.
3. Mistake (3) : Should have reversed the trade and bullish position was not assessed.

Trade No - 2 : Changed the scrip and took bulish position on TCS due to immediate turnaround of IT Sector. When TCS crosses 806, wated for pullback and went long at 805. But, it didn't sustain there and broke 800 twice and stopped me out resulting further loss today.

1. Mistake (1) : Script should not have been changed. If sector remaining same, bullish position should have been taken on INFOSYSTCH, because it was being traded with lesser negative bias today.
2. Mistake (2) : Position should have been taken either as close as the stoploss point (800) or after the script crossing 808 comvincingly with maintaining stoploss below 808.
3. Mistake (3) : Today was day for bears only. Trade should have been focussed on with bearish view.

My experience with share market

1. Assessed first overall situation that was extremely bullish. All bank stocks were being traded with heavily loaded positive bias. Betted on SBIN hoping it to move further. Took bullish position with putting stoploss at day's low point. That was my final stoploss. Generally, I bring stoploss point closer looking at the market situation. Today, I reached my profit point set at 20 points higher than my entry point. But, in this case I failed to grab profit opportunity of another 20 points at least. Entry point: 1248, Stoploss: 1229, Profit point: 1270. Stock finally climbed to 1309.
2. RCOM was another stock traded today. Betted on Call Option at strike price of 420. There was profit opportunity, but could not maximise it due to fear of loss that should be taken care of in future before taking position. Entry point: 17, Stoploss: 14, Profit point: 34. But, squared off at 22 observing some weakness of the stock during mid hours of the trading session. Call option reached 35 at the final hours of the session.

My Experience

Obtaining success in trading equity or commodity market a lot subjects to strict discipline equivalent to that shown by the great saint of mankind. Strategy comes later to optimise the success. Stoicism should come naturally to a trader to survive in this market. Situation becomes more hard if one tries to sustain with not so heavy amount of fund.

Today I will bet on RCOM, INFOSYS & SBI and share my experience here in this blog later.