I missed blockbuster Nifty Rally

Haha, Another biggest mistake. I missed blockbuster Nifty rally. I was actually long Nifty around 4590 and booked my profits at 4710 and waited for a pull back. Again I entered Nifty at 4895 with hedged position and booked my profits and covered my shorts in call option and eventually lost money because of hedged position. Again at 5300 I enter into nifty with a bang by buying call options of SBI, Axis Bank and ICICI Bank. I was holding big long position in PFC and REC. I prematurely booked profit and wasted the opportunity and in that process I almost lost making more than 3 Lakhs (Actually made a small profit of 50k, but it simply compensated my earlier hedged losses that I made by writing call options). I believe that this rally clearly has legs and I personally believe that Nifty could make New High. Let me see whether I could make profits. I'm long in few positions that are very high beta names which I've never gone before in my life. Those are infrastructure names and I'm really afraid to hold it but still holding it in a belief that I could erase all my previous mistakes. Let's see what happens?

Failure is not a sin

I've seen a funny behavior from people who didn't want to reveal mistakes they made in stock markets. If they made winning position they use to boast that for months and years. But they didn't want to open anything that went against them. You know what it would be. Only few make 70-80% winning trade. Most of the traders or investors doesn't reveal their true losses.  I just want to be opposite to others and would like to put my losses in writing. I believe that I could learn a lot from my losses and could learn more in the process of becoming a decent trader. As a result, I'd like to put my mistakes on board.

From here on you'd hear mistakes that has been made by me in stock and commodity markets. I'm willing to reveal  all my dumb mistakes I've been doing in this trade. Hopefully I'd learn a lot from my mistakes.

My First Mistake in blog:

I shorted Gold and got trapped heavily and today morning I covered my position. I'm least bothered about the losses I made in this trade. But the manner in which I made is what that is concerning me. Despite being Gold Bull, I shorted Gold for temporary pull back and caught by the bull.

I lost almost Rs.40K in panic covering today. This is one of the worst day for me. Honestly, I'm losing big money after 4 years. This is the first time in 4 years I've been making big losses in my life. I've lost almost Rs.2 Lakh in Gold Short. Last time I made my loss of this magnitude was around July or August 2007 when I was shorting nifty and it rallied more than 500 points.

After that loss, there was no looking back. I've been continuously making decent profits and in 2008 I made big profits during September sell off and in 2009 I made huge huge profit during Nifty Upper Freeze, which was my biggest one day gain every in my history of trading. My profits were more than 2000% in a single week. That was tremendous time.

I was consistently making money in stock markets. Well I had bad day too. But the magnitude of losses were very small and I didn't remember making losses more than 10000 in a single day. Today I booked losses amounting to Rs.2 Lakh and in this process I could have reduce my losses by more than 40K-50K. Well, it is panic covering and I'm ashamed that I made this. Despite having great gut feeling and temperament I covered in panic and this is a biggest lesson for me. Hope to make mistakes and learn for another couple of thousand times.

Note: I'm formulating strategy to recover my 2 lakh losses and I need to work hard to formulate strategy to overcome my losses. Till then, I'll be licking my wounds.