Traders Queries - October 2022

Query 1 I have bought nifty 17750 CE 27th October @ 158 and when market fall, I again bought it @ 48. Can I hold till the month end?
Query 2 : I shorted nifty @ 17200, but market is moving up. Can I carry forward my position as I expect market to fall from 18,000.
Answer for query 1 : Option value erode each and every day. Even though the market went up, the predicted direction is right, because of decay it didn’t give profit as 17750 CE 27th October is trading at 40 now.
Lesson : Option buying gives profit when the movement has momentum in it. During sideways market, option value wont gain, so we have to trade accordingly. We have to think about time decay when we trade in options.
Answer for query 2 : Every trade should have stop and the amount of risk you can take. When we did not respect stop and get out of the trade when
the market is moving in opposite direction of the trade, the loss increases and the capital has the risk of getting wiped out. This happens when we have a biased view about the market. Here the bias is market will fall and we look for the things which support it, which makes us unable to accept
the real facts like 18000 is so far away from 17200 and its not worth taking the risk.
Lesson : Bias formation affects our trade. These are different types of bias, but when we are concentrating on the facts, then it will become visible that our views are biased and we can rectify it.