Time – Day 39

Roped in a teeny tiny profit of 15 rupees trading today. I know its a very small amount, but it still helps to boost your motivation. For instance, today I was sitting on an unrealized profit of 200 rupees! But I got greedy and started thinking of unrealistic scenarios where I could make a shit ton of money in one bet and then chill out.

However, trading doesn’t work like that. Its all a game of probability. I had hit my target price which was around 200 rupees and I could have closed the trade and booked that profit. However, greediness overtook me and I did not square off my position.

Result? I lost all of that profit and booked a measly 15 rupees as profit. I am not complaining, because any number in green is any day better than a red. I must adhere to strict targets and stop losses. Timing is everything. If I had waited for 5 more minutes, I could have made 100 rupees but I was hasty because everything pointed that I was going to lose money. I think I need more of Philakone’s videos.

I am behind on a lot of things I thought I would do this month. There is so much to do and so less time.

Although, you must persevere. Come what may.

I know my posts aren’t worth a read and I really appreciate it if you still read my blog, but this is like a journal I write for myself. If I write a blog post that I think is worth sharing, I will definitely share it with you, my faithful reader. 🙂

Crude Oil Inventory – Day 38

Crude Oil is traded all over the world and inventories are probably one of the main events that happen in crude. Millions of traders all over the world are glued to their computer screens when crude oil inventories arrive. I myself refrain from trading during crude inventories because as soon as the inventory arrives, the market over reacts and jumps an obscene number of points in either direction.

Doesn’t matter what the inventory denotes, the market takes a plunge somewhere and then settles down after a while. I sold crude at 4094 and closed it at 4084 booking a sweet 80 rupees profit excluding taxes. However, post inventory, it broke 4000 and went down right to 3960! If I had kept my position and closed it at 3964 I could have a made a whopping 1200 rupees profit excluding tax! Such drastic amounts of P&L is possible because crude is highly leveraged.

As I write this post (11:00 PM), I am sitting on an unrealized loss of 100 rupees. It is still oversold on the RSI and I am hoping it would that it would jump to 4k levels so that I can book a decent profit, or at least break even. However, now that I only have half an hour to close my position, this seems highly unlikely. I might have to book a loss.

Lets see how that goes.

Update – 11:20 PM – I booked a loss of 200 rupees.

Trading is a serious business.

Ups and Downs – Day 33

As I write this post, there have been a lot of ups and downs in my life, within a matter of 2 hours. I bought crude futures for what I thought to be a good amount at that moment. However, the market doesn’t listen to anyone. The moment you think you are the best, the market makes you realize that you aren’t. It lifts you up and puts you right down WITHOUT ANY WARNING. This is why most people stay away from the market. But we aren’t most people, are we? We like a good challenge.

Market keeps you humble. Markets might test and try to drive you insane at some point. But if you sail those waves, you emerge a more peaceful, calm human. Markets are great teachers, Not the kind that hit you on the knuckles with a wooden ruler if you don’t do your homework, rather they try to stab you with a Rampuri if you don’t do your homework.

Your now have four options.

1. Die (Blow up your account)

2. Get a cut from the knife and manage to escape while you assure the teacher that you will do homework next time (Not blowing up your account. Cutting losses short)

3. Learn the teacher’s usual tactics and dodge them elegantly. (Cutting losses short and letting your winners run. Buy low, Sell high and vice versa.)

4. Run away (Run away)

A lot of people go through a near death experience through option 1 and then chose option 4. The key in trading is to keep learning all the time and to persevere.

🙂

Crypto Trading – Day 14

There is a lot of hype going around cryptocurrencies, and with the amount of crypto currencies that are coming out right now, everyone is confused on which coin to invest in. Or is investing in coins a sane option? The answer is, I dont know – yet. But what I do know, trading them can be quite profitable.

I had a very captivating discussion with a college friend yesterday who knows quite a bit about crypto and I registered on a few crypto trading websites. They have amazing charts and TA (Technical Analysis) – better than what my current stock broker offers, for a fraction of the cost and guess what? No tax!

Well, you might have to pay SCGT (Short term capital gain tax) after realizing some profits in crypto. There are no transaction taxes like STT, GST or SEBI charges, because these exchanges are not regulated by a governing body. They could run away with your money if they want to, but I like to think that they won’t. It is human tendency to think that bad things won’t happen to them. Based on this fact, people who short sell make a lot of money if and when they are right.

There are only maker and taker fees in crypto exchanges, which in itself is a pretty cool concept. I’m not going to delve into that now, you can always google it. Also, I haven’t started trading crypto yet, so I am not an expert on this. I am learning on how to trade crypto from this YouTube channel and this Twitter handle. Twitter has a great crypto community.

So, if you are interested in trading or cryptocurrencies, hit me up and lets make some munnnyyyy!

Trading is hard – Day 4

Everyone in the stock market and people who do not know anything about the stock market tell us that trading is hard. The million dollar question however is – Is it really hard?

It is indeed very hard to be profitable, but not impossible. I have been trying to get my head around the markets and how things work for more than a month now. I have read countless articles and several books about the equity market, commodity market, futures and options market and even though I have a vague idea of how things work, I am still not profitable. Even though I have read about a lot of strategies and insights on price action, volatility, volume and what not, I am still not profitable.

One of the main reasons for that is, I believe, my trading psyche is very emotional and greedy when it comes to booking profits or accepting losses. One of the main mistakes I do is whenever I see a little profits in my account, I wait in hope of it getting bigger and better. But more often than not, it goes the other way round and I end up booking a loss because I am scared to lose more money.

The most I have lost in a single day is a whooping 600 rupees which amounts to 15% of my trading capital. Yes, I blew up 15 percent of my capital in one day. But that’s alright because if I had gone out partying with friends, I would spend double that in a day or ten times that in a month considering my amazing food habits thanks to Dominos Pizza.

I hate Pizza now because every time I think of ordering a double cheese margherata with cheese burst crust and extra cheese toppings paired with a chicken parcel and a chilled bottle of coke, I think of losing that money in the stock market for good measure. Because Pizza makes you fat, trading gives you life skills. Poor trading will break you apart, put you through ups and downs 10 times in a week making you realize that your last breakup was a cakewalk compared to trading emotions and the prospect of losing money.

The idea is to get so disciplined at trading that it seems like a boring activity. Real profitable trading is actually said to be very boring (not that i know, I’m still crying over my losses). Amateur traders like me and my colleague go through a roller coaster of emotions when trading, I only hope professional traders are a lot more calmer than us.

If your life is boring, monotonous and sad, if you crave for drama, adventure and sometimes want to kill your trading terminal because it hangs when you want to place a critical buy order! Fear not, trading is here and opening a demat account will make your life very interesting.

Seriously though, if you wish to start trading and you are a complete beginner, I would suggest opening an account with zerodha (apparently the best discount brokerage in the country; they are pretty good when compared to others). Refer Varsity for everything there is to know about the markets, and if you want a fellow trader for moral support hit me up and we will get over this together!

Here is a link to my daily P&L statement.

They say trading is hard, is it though? Well, we ought to find out. 🙂