The most important aspect of Price Action Trading is You need to know when to do a complete reverse gear. Trading is like War.
The Art of Way says -
- “If you know the enemy and know yourself, you need not fear the result of a hundred battles.”
- “If you know yourself but not the enemy, for every victory gained you will also suffer a defeat.”
- “If you know neither the enemy nor yourself, you will succumb in every battle.”
The day started with an extremely bullish view of BankNIFTY because -
- All other World Indexes are up.
- It is again at Resistance zone trying to breakout.
- This time it is different; There was an extreme 4000% surge on Change in OI on ATM Put Options.
So, This is my view -
Posted in https://in.tradingview.com/chart/BANKNIFTY/b0pajiGn-Diary-BankNIFTY-Trading-Plan/
But as my most models are based on volatility spreads. My call options spread had their BEP breached. So, I had coded to convert all to MIS and short Put options to offset some of the loss of the call spreads.
Anyways, Before the end of the expiry, I didn’t want to bet huge on BN Fut buy either. The loss of call spreads can be seen clearly from the losses here -
If you have seen the Youtube Live video, the whole entry, the exit will be properly visible.
Click on it and Download
You can see the proper intervention today saved nearly 60K. It is extremely important to know when your strategies have been screwed and Your obligation to act towards it.
Anyways, Here is another approach of today.
In between of today’s - I had a bearish view as the market was on consolidation.
What happened next is - Both of them triggered. But we got sharp reversals too.
Due to my trading style, I had already closed one future trade on TSL. Another I hedged aggressively assuming a 300 point upside.
Either You have to hedge or You have to cut the trade. In net, You need to be able to act on Risk Management.
The net premium in Puts is 32+62+88 ~ nearly 200 points. We can manage the rest tomorrow.
Also, there is a third way of management which is how this Aunty is exercising. This majority of Homo Sapiens in this trading community does this only. That’s why 95% of traders lose money. -
