Don't Do This!!

Don’t do what I did in Tata Motors!

Tata Motors one of my favourite scrips for trend following system which I have been done for more than five years now. It has never let me down at the end of it in these five years. I don’t think I will stop doing trend following in this counter.

Our previous trade was a long trade from 441.38 which I got an entry on 30th May 2022. Post long entry market did not sustain the up move and started the downward journey. The SL for this long trade was at 426 on 6th Jun 2022. Now, this is where you should not do what I did…….

I messed up my exit at 426 and instead kept holding it till 413 until today (13th Jun 2022) which I exited and reversed at.

Why did I do it mess? Not giving the right attention to detail in my execution and automation file. I totally missed to update the right values last week. Overlooked my own check list and did not validate it which I normally do every week.

What did this cost me? 13 points of extra loss + 13 points of profits = 26 points on Tata Motors on four lots…… all of this totals to Rs.1,48,200/-. Cost of not paying the required attention and over looking my own process.

Now, what am I going to do to fix this… I am going to follow a methodology called as RCA & CAPA. RCA stands for Root Cause Analysis and CAPA stands for Corrective Action and Preventive Action. 

Basis this, the root causes are:

·  human negligence,

·  taking things for granted,

·  not being in the present when updating the execution data,  

·  doing multi-tasking during data updation activity

CAPA that I am going to take are:

·  build few more checks in my execution file

·  daily auto reconciliation of all orders in comparison to the bhav copy values

·  move all of this to algorithm-based trading as soon as possible

There is always room for improvement and even the best can be bettered. Process, Process and Process is the way for bringing in efficiency and optimsed outcome.