A thread on my mistakes in Buying Options 🪡 🧵
1. Not sticking to a system. This is probably the biggest blunder all traders do at some point and for some is a life long thing. I used to hop from Scalping to Holding options on the same day never stuck to one particular system, used to trade on every candle. (I still do that)
2. Not being able to stop, I never used to stop at a particular target I had made 20% in a single day but i would still not stop, over trading would not be a fit for how much i used to trade, 2000+ trades in a single day on a 15 L account, this had taken all of my profits always
3. No stop loss on MTM, it is difficult to put an sl while scalping but a MTM SL can be taken. I never did i would have made Lakh and then lost 2-3, this used to happen because i had most of the times bounced back and came in profits after the deep negative MTM.
4. Being greedy I would buy an option for 150 with a target for 170 and then not square off even at 200, forget trailing SL as even in logical and Profitable trades I would put hope in it. I have lost Probably Tens of Lakhs worth of profit on small account by not doing this
5.Putting all of my account on every trade, I have 20 Lakhs in my option buying account? Banknifty call is for â‚ą250 i am buying 7500-8000 quantity. A rug pull would simply out you in a 10-20% DD as i used to keep no stop loss in it.
6 Averaging my loss making trades. Oh boy have we all not committed this crime. I would buy something at ₹200 buy more at ₹170 and then double at ₹100 and stop when i would have just given up. I beg you don’t do this ever. In the long run it will devastate you
7. Buying on tips in my initial days, I once had taken a call from my broker on pvr, He did not give an sl and i was sitting in the trade PVR had gone down 2% from my avg. i called him krna kya hai he said ghum jaayega it was 3:15 and i believed him i was gullible
8. Feeling like god while trading. “Maine call li hai upar kaise nahi jaayega” i once had made a 10L account i to 15 L in a few days and then i was feeling like god ki ab to kabhi loss nahi hoga. Market came in and slapped me so hard that i was lost for a few days. Don’t do that
9. I and many others still commit these mistakes, i am happy to say that the scale has gone down by a lot of Systematic trading has helped do that (I still break rules but that’s okay with time it will improve) please let me know which all mistakes you have committed.
