BankNifty Option Trade on 17/08/2018

                      Hello friends again! I was requested by many to describe my methods to trade Banknifty. So here's step by step description of my 17th August trade, and what else could have been done!

                      I generally don't trade without chart. Here's the chart of the 28000 strike price call option of near expiry(23 Aug). I have tried to explain all the things in below chart in simple way.

                          So, as you can see in the chart, Gap up opening is there in the morning. (GAP UP opening means price opens at higher level than yesterday's closing level) So yesterday price closed at around 140 level and today opened at around 190 level and immediately made low of the day (see arrow of today's low). Then again started upward move.

                        Gap up and immediate reverse from low suggests strength in market. So it is better to go long. But to confirm that I waited for the retracement of price towards low of the day, which happened and again reversed. So I decided to take entry shown in the chart and kept my first SL(Stop Loss) at immediate low that market has made.

    

                       After it gave decent upward move as our expectation, I generally like to take SL up, so that I can't make loss whatever happens to price. So I took my TSL(Trailing Stop Loss) up. Which ultimately got hit and I exited with profit.

  

                      Now let's talk what could have been done differently. 1.If you are more safe trader, you could have took your SL to your buying price, so that if it hits, you exit with no loss, no profit. Which in yesterday's case would have given good profit in the later part of the day, but it get hit also on many days, so I would rather be happy with small profit against no loss no profit.2.  Another thing is one can book profit at higher level also if you are not comfortable with the fact that you were in good profit and let go of it with TSL. One has to adapt to market condition on day to day basis. I didn't booked as I was expecting the rally, which eventually happened also, but every time your prediction will not be right. We have to accept this fact.

                So, that's all from now. Feel free to suggest anything also as I'm also in learning phase. Till then, See Ya All!!