Greetings of the day...!!!
Sharing one case where we almost paid the penalty of not listening to chart...
Some days earlier we recommended a short in idea around 78 for targets of 76 and 74
Things were going good and our 1st target was achieved within hours....
Booking partial profits when target 1 was achieved was good but there after... There were some elementary mistakes that we should have taken care of and should have avoided...
Here were some mistakes that we made...
sharing so that one can learn and avoid those mistakes and make himself/herself a better trader ....
1. Should have trailed SL to 78.30 instead of keeping it at 79.60
Looking at the charts will suggest the importance of 78.30
The stock came out of the falling channel....
The message was clear....Chart was telling us loud and clear.... EXIT EXIT EXIT
There was a clear indication and ample time to exit from short position at cost itself for balance position... but we did not obey what charts were telling us...
Even at 79.60 we should have exited but were adamant and expecting the stock to fall because of bias of our postion may be & We almost paid the penalty as the stock went up to 83 thereafter
but luckily for us, again charts were at rescue and suggested not to panic but add short position again and we did so around 82.25
And today we were able to book profit at 79.70 and 78.80 respectively (our avg cost of open position was 80.125)
Lesson to be learnt
If we are looking at charts for our trade we should Listen to charts completely...
and not let our will / expectation / ego to come in between, beacuse our expectation always has a desire attached to it and we become bias which is not good ....
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So yes, Although the trade has given good profits overall ...we r not happy with the way we earned but I sign off thanking and respecting charts for helping and bailing us out this time...
Regards & Take care...!!!
Sharing one case where we almost paid the penalty of not listening to chart...
Some days earlier we recommended a short in idea around 78 for targets of 76 and 74
Things were going good and our 1st target was achieved within hours....
Booking partial profits when target 1 was achieved was good but there after... There were some elementary mistakes that we should have taken care of and should have avoided...
Here were some mistakes that we made...
sharing so that one can learn and avoid those mistakes and make himself/herself a better trader ....
1. Should have trailed SL to 78.30 instead of keeping it at 79.60
Looking at the charts will suggest the importance of 78.30
The stock came out of the falling channel....
The message was clear....Chart was telling us loud and clear.... EXIT EXIT EXIT
There was a clear indication and ample time to exit from short position at cost itself for balance position... but we did not obey what charts were telling us...
Even at 79.60 we should have exited but were adamant and expecting the stock to fall because of bias of our postion may be & We almost paid the penalty as the stock went up to 83 thereafter
but luckily for us, again charts were at rescue and suggested not to panic but add short position again and we did so around 82.25
And today we were able to book profit at 79.70 and 78.80 respectively (our avg cost of open position was 80.125)
Lesson to be learnt
If we are looking at charts for our trade we should Listen to charts completely...
and not let our will / expectation / ego to come in between, beacuse our expectation always has a desire attached to it and we become bias which is not good ....
------------------------------------------------------------------------------------------------------------------------------------------------------------------
So yes, Although the trade has given good profits overall ...we r not happy with the way we earned but I sign off thanking and respecting charts for helping and bailing us out this time...
Regards & Take care...!!!
