I lost 50K in Union Bank's F&O in a single day when PNB posted result on 7 August.. Should i continue to trade or take break


#1

On 7 August Morning, I bought 2 lot (12,000) of Union Bank August Future at Rs. 91. The stock price goes up for a while which was merely a minimal increase and suddenly it started to plunge. I was waiting for correction which never happened whole day. I was waiting with open position and the price kept going down from 91 to 90, 89, 88, 87 and finally moment just before market closing, i had to sold at 86.70 in the fear that it may go more down tomorrow so i should not carry overnite and the loss was around 50K. I ditched the trading next day with frustration. Now i’m realizing that i did not use Stop loss through which i could have curb my loss. I did not analyze much before buying, so the onus of this loss is totally on me. Now i’m thinking to return and heal the losses slow and steadily with some good approach and mindset. Shall i proceed or take some more time to do diligent home work. Provide some effective advice. Thanks in advance.


#2

Take some more time. Do paper trading, analyze your strategy. Take trade only if the risk is minimal. Trading is not about winning, it’s all about risk management. Manage your risk and you’ll earn handsome amount. Good luck!


#3

Trading on results is the worst thing new traders can do

You should understand if you cant take big risks, you should be away from volatility

Yes that sounds counter intuitive for a trader but what it means is dont take trades on RBI policy days, Budget days, QTR RESULTS same day (Biggest reason why most traders become bankrupt), RCOM, PCJeweller, etc etc

Even in non volatile simple trades also there are ample opportunities to make 50K in one day, then why you want to enter lion’s mouth to make 50K

You want examples of simple and easy trades which could make 50K intraday recently? - SRTRANSFIN short, PVR short, TCS long (Qtr result, but next day trade). If you were regular in market you should know which days I am talking about. These had 1/10th the risk of a Qtr result trade and would give same profit.


#4

Trading on results is only good the next day, when the pre open and the market tells you how it feels about the result. Take example of UPL Ltd recently, it went like 8% up next day, pre open at 2-3%, easy 5% was there for the grabs. It was an obvious trade as UPL was at bottoms and result had come out previous day post market hours.

If you trade just when results come during market hours, first of all you dont know how market has received the results. Seeing the result PDF or hearing commentary is useless coz direction is random you have to accept that. Also volatility is so high (up down up down), u never know the final direction is up or down.


#5

Quit Trading| Invest in a mutual fund| Stop asking for advice!


#6

Second that. Look for capital appreciation over a longer period of time.


#7

Do yourself a favor and stop trading in F&O!! If you want to trade, then trade in cash market. F&O is for professionals and hedge funds, it’s not for retail traders!


#8

I did the same mistake as you earlier! Trading on Result days, based on Street Estimates.

Profits prediction in Qtr results, and Real Results is ALREADY, ALREADY , ALREADY factored into the stock price. Everything is KNOWN ALREADY!.

Traps are set for Small fries like us, who Buy @ Open on stellar results, happy in the short up-move, then suddenly its falls like pigeon poop!. (20% of the times the Move and Results are in Sync, which means you’re in the reverse trade 80% of the times)

I quit, results announcements day trading, just do normal trading. I play PS4 instead.

Money not Lost is money saved.


#9

Basically you know nothing about trading!
You don’t even know the meaning of the word “correction”.
Why oh why, you people continue gambling.?
This isn’t trading.
Do you have any system?
If yes then tell more about it and may be we can help


#10

Do trades with systematic way and plan of action.

And never enter into trade before 9.35 a.m which the market more volatilie.

Watch the image if you follow the strategy you never enter into BUY trade…


Strategy for intraday
#11

@udayasai
Many profitable intraday traders I know, even enter in premarket with market orders.
So what you say may be good for newbies but not for everone and as you say it - always.

Initially many sources told me to trade with as higher TF as possible or at least 15 min TF if intraday - I lost and lost - until I settled on 3 min TF.
I will still loose today if I trade in 15 min TF - so it’s all about knowledge, experience, and your own style!!!


#12

I’ve lost 4 lacs plus in fno. Now I’ve decided only to sell options, otm contacts for lesser risk n humble profit. I’m sleeping better.


#13

Have u lost more in Futures or due to option buying?


#14

It is true that most of profitability can be derived on fundamentals trading and in very short time also. However, it is highly not recommended for people who are still inexperienced in trading. You would need to spend maybe a couple of years on market learning before you start with F&O


#16

Very true those Indore and Varanasi based advisors simply sends SMS and then stop loss hit they just share the numbers


#18

Who is that ?


#20

Dirgha better next time try with another username,in market first lesson to success is never trust anyone


#22

No when the person I recommend also has same name Vinay I need to be diligent ,nobody will come to rescue in market


#24

Ok thank you


#25

Interesting new prospect, or new scam should I say :thinking: