On November 05 , 2020, this is what we had posted
The price was at 347 and we had suggested to go short on 360 Call option at 4.6
In that we had mentioned SL at 365 but be watchful if it crosses level of 353. A close above that would indicate further upside movement possibly towards our SL at 365
Notice how the level of 353 acted as resistance till November 23, 2020.
And once it surpassed that level, Wipro eventually made a high of 364. Since then it has taken a pause and is currently trading at 358.
Again we see gap resistance at 365 being respected.
This teaches us an important lesson that is not about being right or wrong.... but more about understanding important levels, identifying your entry and exit points and planning your trade accordingly.
Interestingly we came out from our strategy on November 24, 2020 with decent profits, even though the stock moved in the direction of Stop Loss... ( Wipro was trading 10 points above our entry level).
This Case will help you understand that rather than focusing on making profits, one can increase his / her chance of being profitable if he / she focuses on managing risk. Remember This is Market and Market is always Supreme. Give yourself scope to be wrong and try to manage worst come situations... and chances are you will see your trades being more profitable.
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Take care & happy learning..!!!