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!).
