Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Charts & Analysis

Stopped out!

Share:

I got stopped out of my long Nifty trade this morning – the Nifty was down only 4% then. That’s a loss of around 25% net, reasonably huge for me, though I managed to recover some through a long strangle that I put on immediately. Interestingly, system’s all short, so it teaches me a few things. Knowledgeable and bankrupt? 🙂

It’s good to have stops, however wide, when you know you will get out at that point. It’s down 10% now! Luckily all puts have liquidity and I’m paying a lot lesser to buy them back than I thought, and the premium gave me a little cushion (but not enough, obviously).

Tough luck, but heck I traded with what I could afford to lose, and I still have enough capital left to trade the systems. And some more actually – something unexpected turned up. I think I’ll have to now decide between the discretion and systems in general – turns out systems are lot less emotional damage (and on the right side of the trend, I may add!).

Share:

Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial