Day: January 26, 2022

Jan21-W2: Sensible trading and high VIX always helps

With market all set to go long, I had nothing but put options. As Thursday came near, I kept some call options as well which helped in giving good returns. These kinds of weeks make it feel good. Small money made safely is always better than making large money with a lot of risk.

So I traversed through the following candles during the week:

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAnnualized  return till today
Rs.14,691.5Rs. 1162758.951.26%92.11%3174.74%

The following is breakdown of week’s positions:

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.

Jan21W1 ROI

Jan21-W1: The means don’t justify ends

Overconfident of mean reversion tactics and filled with greed to recover ridiculous penalty due to SEBI’s shenanigans of last week, I entered the mean reversion trade early. I think it was Tuesday. The trade backfired and I was in deep red.

It was not like I was completely off the mark. On Wednesday morning, I did get a chance to exit almost at breakeven but emotions overcame reasoning. I did not book and watched the trade go back in deep red within rapid fire time.

I knew that the same strike of 17850 CE would not be able to recover by Thursday. I went in by another 50 points and shifted to 17800 CE. I prayed on Wednesday night and Thursday morning luckily opened with a gap down opening. Though the overall profit was good but witnessing a realized loss of Rs. 1.25 lakhs is simply unjustified.

In future, I should exit when breakeven and switch to safer strike until mean reversion target is met.

So I traversed through the following candles during the week:

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAnnualized  return till today
Rs. 71,856.3Rs. 1090902.656.58%2658%3075.04%

The following is breakdown of week’s positions

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.

ROI

Dec21-W5: Retail traders are looted by regulator

In a week when everything went right and I earned well via a methodical system of trading, I had to shell out a hefty amount of ‘other charges’ These are charges collected by dear regulator SEBI for penalizing retail traders like me who do not maintain lakhs of margin. To add salt to injury, it is impossible to know breakdown of these charges, at least on the console of Zerodha.

Rs. 15,000 of profit in the week was knocked away by Rs. 10,000 of SEBI charges. I have no interest in knowing the breakdown anyway. I know the reason. This is my punishment for being over smart and keeping negative margin on Dec 17th. I thought that as long as I maintain positive margin by end of day, I am ok. However, our dear SEBI can randomly take snapshots 5 times a day and penalize if margin is negative.

Did I deserve to be penalized? Yes

Did I deserve a penalty of Rs. 10,000? Absolutely no

I say this because we Indians perhaps pay the largest taxes in the world for trading in a market where freak trades are becoming common and price determination is done by speculators sitting in Singapore. SEBI has no right to penalize me by this much amount if I committed this mistake for the first time, especially when it can change margin requirements 5 times a day as per its whims and fancies. Couldn’t I had been let go with a warning?

But as always, nobody will care. This piece of blog will just die, just like hopes of several Indian traders who wish for reduced taxes and penalties.

I guess once I become rich enough, I too will trade from Singapore.

So I traversed through the following candles during the week:

Here are the results  

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAnnualized  return till today
Rs. 5327.98Rs. 1085574.670.49%28.99%2952.62%

The following is breakdown of week’s positions

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.