I entered this trade today as yesterday's close was above level. But today price has come down below level. Where did i went wrong? as i think i should have waited more. Your thoughts?
raavigeorgian
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@Minhaj_AK, As long as the price doesn't break the weekly candle you're not wrong. Though, it's better to buy any stock on a red day if possible, and after 3pm.
Minhaj_AK
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The guidance tips seem very true as i have faced the same. But, could you please tell the reason why it so happens...the psychology behind it.
raavigeorgian
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@Minhaj_AK, Very relevant question. Any ups and downs throughout the day are caused by the average speculative trading (mostly intraday). But the last hour belongs to the Market Makers. If they expect the stock to shoot in the next coming days, the stock won't go down in the last hour.
Minhaj_AK
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@raavigeorgian, acha got your point. But suppose i am looking for a Breakout trade, in that case if the BO happens in the first 15mins, then how should i enter the trade?
raavigeorgian
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@Minhaj_AK, A breakout isn't a breakout if it doesn't close above the BO level. Wait for closing to enter.
Here's another way. Look for a bearish Pin Bar near the BO. If the Pin Bar gets taken out, you're safe to enter. (Still, I'd suggest trust your SL more than the company, its fundamentals, or even the chart.)
raavigeorgian
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@raavigeorgian, Have a look at the daily chart of Chambal Fertilizer. You'll get a better idea on these Pin Bars.
Minhaj_AK
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@raavigeorgian, hmm ya. got the point. thanks for such valuable insights. keep it up bro :)