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Stopped out!

3 comments Written on October 24th, 2008 by
Categories: TradingSystems
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!).

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This entry was posted on Friday, October 24th, 2008 at 9:43 AM and is filed under TradingSystems. You can subscribe to any comments to this entry via RSS 2.0. You can leave a response, or trackback from your own site.

About the Author: Deepak Shenoy
http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company in Gurgaon. He also provides data research and consulting services in the financial markets space. Connect with him at deepakshenoy@gmail.com.

3 comments “Stopped out!”

>”Markets can remain irrational longer than you can remain solvent”

Anonymous
10.24.08 at 2:15 PM
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>A sign of our times when you say “Was down only 4%”

AGB
10.24.08 at 2:25 PM
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>Anon: Agree! I think irrationality is in denying the price, like I did!

AQB: For good reason too, the markets ended down 12.5%!

Deepak Shenoy
10.24.08 at 3:22 PM
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