13/07/2024
I was losing big in a few consecutive trades in the stock market. My mark-to-market (M2M) losses were escalating, but I continued to make adjustments, hoping to turn things around. Unfortunately, the market kept moving against me. After a few days of waiting, I finally exited my position. This experience led to a pause in my trading activities. I felt disheartened, thinking I might not be able to trade anymore. Time was also a constraint, unable to fully concentrate on trading.
However, I continued to track the market. I noticed that Nifty had completed three cycles of uptrend and, in my opinion, was due for a pause. One day, with a little time on my hands, I planned a Bank Nifty trade, betting on a long position. I marked the zones for my trades, deciding to take action if the market crossed any of these zones. I identified supply and demand areas and observed the market closely.
It seemed like the market wouldn't make any significant moves that day. To my surprise, it eventually broke in one direction—upwards. I planned a trade on the upside and marked the nearest demand zone on a 5-minute time frame. When the price came down to this level, I bought an out-of-the-money (OTM) call near the supply zone.
Initially, the trade went against me as the price continued to fall. Then, it started moving in my favor, though not significantly. After some time, I found myself in a slight loss. Despite being in profit earlier, I didn't want to exit prematurely. I decided to follow my system and held on, even as I lost the M2M profit.
Eventually, the market returned to the same profit level. This time, I decided to book the profit and closed the day in the green. I made no more trades that day. At the end of the day, I reviewed the chart to see if the market had moved further in my favor, but it had come down. Reflecting on the day, I realized the trade was almost perfect.
By following my system and sticking to my plan, I ended the day with a profit, reinforcing the importance of patience and discipline in trading.
