Posted by: alok | September 18, 2006

A vacation that cost me a fortune..

Market crossed 12K again today after going ‘fana’ in May-June 2006. It had lost more than 3000 points around that time.
I found it to be a nice opportunity to enter into Futures Market, as I felt there wasn’t anything fundamentally wrong with the indices – so bought Nifty September futures at around 3000, hoping the market will regain its lost positions, and in fact the market really did – NSE today had crossed 3500, giving me a gain of 50,000 bucks on an investment of 35,000 within 2-3 months. Not a bad investment afterall.
So what went wrong? Nothing except that I went on a vacation to Mussourie, in July and the market lost few points on that eventful day – and it triggered margin calls on my holdings…!!! I was scaling the mountain peaks and market was going down. During that time, ICICI squared off my position as I didn’t respond to margin calls.

A single day of carelessness of not tracking the positions on a daily basis – a lost opportunity of 50,000 bucks 😦

Moral of the story: If you are invested in derivatives market – track your holdings daily, without fail.

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