Everyone has bad days in trading - I usually never let my mind get affected. This was different, because like an amateur, I panicked out of a set of trades because one went bad.
I was in three trades simultaneously-
1. Short on a put option for 9000 strike = Would have worked out if I gave it time
2. Bought Tata motors - trade premise inconsistent and circled back to market conditions = Would have been a break even trade - why was I trading the stock anyway, it was neither my speciality nor an immediate need. Maybe I was uncomfortable with my exposure
3. Long on a call option = Would have worked out if my goal was different (instead of covering a loss from the above two trades, I should have treated it as an independent event)
The timeline of events is as above.
Learnings:
1. Stick to Futures, Options and Indices. I am not a stock trader - I trade derivatives which I'm good at. Lack of volatility made me skittish and I panicked.
2. I'm watching too many TV series and not working hard enough. That changes today. I am working out every day which is becoming the second good thing I do - I used to have more and I'm going to work harder to get back to that.
3. Too many things on my mind - its time to close everything outside of trading that's pending - immediately, make a to-do and strictly stick to it
4. No more gaming on weekdays, its messing with my hardwork mindset.
Other affecting factors:
1. Bitcoin is not moving. I'm hedged but its an opportunity cost that gets heavier as time goes by.
Okay - that's out of my system. Back to work.
I was in three trades simultaneously-
1. Short on a put option for 9000 strike = Would have worked out if I gave it time
2. Bought Tata motors - trade premise inconsistent and circled back to market conditions = Would have been a break even trade - why was I trading the stock anyway, it was neither my speciality nor an immediate need. Maybe I was uncomfortable with my exposure
3. Long on a call option = Would have worked out if my goal was different (instead of covering a loss from the above two trades, I should have treated it as an independent event)
The timeline of events is as above.
Learnings:
1. Stick to Futures, Options and Indices. I am not a stock trader - I trade derivatives which I'm good at. Lack of volatility made me skittish and I panicked.
2. I'm watching too many TV series and not working hard enough. That changes today. I am working out every day which is becoming the second good thing I do - I used to have more and I'm going to work harder to get back to that.
3. Too many things on my mind - its time to close everything outside of trading that's pending - immediately, make a to-do and strictly stick to it
4. No more gaming on weekdays, its messing with my hardwork mindset.
Other affecting factors:
1. Bitcoin is not moving. I'm hedged but its an opportunity cost that gets heavier as time goes by.
Okay - that's out of my system. Back to work.