phoenix

Losing it all and starting all over again

I lost all profits I had made from my trading strategy over a period of half year, in a couple of weeks. Can you believe that? The amount was almost Rs. 3,00,000. How can I lose Rs. 3,00,000 in 2 weeks? Other than overconfidence and stupidity, there are some good reasons.

It is a bit of a story actually. During later half of Jan22, I needed to withdraw almost 40% of my trading capital to meet some requirement in family. The corpus was to be regained in about 1.5 months. So, I had decided to take a break. The brokerage cost and lack of capital to perform mean reversion trades does not really suit wannabebull style.

But after a couple of weeks, it got difficult to stay away from trading. I took trades which had nothing to do with wannabebull & no basis actually. On Feb 24th, I was trying to manage nifty calls via mean reversion style. I was so impulsive that I took hedges at 09:15:01 at market order. The cost of hedges was Rs. 60,000 which turned out to be the loss of the day. Since I never had capital, I applied for loan at CRED to manage that trade.

I subsequently wanted to recover this money and started doing wannabebull style trading but without analyzing charts. I ended up with a massive loss of over Rs. 2,00,000 on March 10th as I again was doing mean reversion trading without a plan in hand. But more than anything, I lost that much money that day because I thought I deserved to lose as I was not doing trading diligently.

No earning means learning:

  • Always believe that I am here to win, whether doing diligently or not
  • Market order at 09:15:01 is a big no
  • Mean reversion trading is a handle with care mathematical strategy. Let math instead of gut feeling drive it

I am going to resume writing on this site for another year as it definitely helps with the rhythm but won’t be posting trades in that detail. Nobody reads this site anyway and I am not trying even a bit to market it either. The objective right now is to bounce back. Not everything is bleak; I have made almost Rs. 80,000 during the past month. Preserving the winnings take utmost priority. The rest is simple.

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