@MOHIT09 what should be done now? I bought above 60. It is 55 now.
MOHIT09
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@himanshu93 wait for tomorrow, if it breaks today's low than better to book loss
Taurus333
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@MOHIT09, thanks for your valuable advice. It was a false breakout or what? Need to understand as I am new in stocks. It is more than 9% down now.
MOHIT09
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@himanshu93, As BANKNIFTY faced a stiff resistance from its 200DMA, and the effect we can see in all the banking stocks.
you are correct it gave a false breakout. It will be good to stepout of the trade. don't book a loss more than 5% on swing trades.
This is just a probability and it will good to exit the trade at 2%-3% loss and grab a target of 10%-20% in a trade.
Those who learn risk management properly can earn consistently from the market.
Taurus333
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@MOHIT09, Thank you for your valuable inputs! I hope I can sell at correct levels tomorrow after this huge GDP contraction news as market will react badly to it.
MOHIT09
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@himanshu93, Your Welcome Himanshu
Yes. but if you trade on calls you should follow Stop Loss strictly.
Also the correction in the market was certain after such a long rally, just a single bad news and market corrected.
The market will absorb this news and continue.
Taurus333
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@MOHIT09, Ok, will follow SL strictly! Yes you are right!