I infused Rs. 50,000 from my salary in Nifty Index 50 trades and lost the same amount. It is not only an irony but also a tragedy, a dream crusher and a sad hardcore truth about trading. This was bound to happen. I had been observing the drawdowns for past 2 weeks. Though I wrote extensively about how to prevent losses from getting bigger, they just remained words. The damage to P&L will take a long time to recover. Hopefully, self-confidence will recover sooner.
So I sold OTM strangles from Jul 30 to Aug 5 whose daily candles were like this:
Here are the results:
|Net Profit (after deducting brokerage)||Capital deployed (approx)||Week’s ROI||Annualized ROI for this week||Total no. of weeks traded till today||Annualized return till today|
|Rs. -46,455.13||Rs. 7,04,099||-6.59%||-97.13%||8||-16.05%|
I did recover approx Rs. 24,000 on Friday as I rolled over the trade. However, I no longer have plans to recover the remaining.
The following is breakdown of week’s positions:
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