First of all, i was late today, i came at 10:30 (full 1hr late). This has become an irritation, which affected my trading today. It left me with a guilt feeling and it took me one hour to get out of this feeling and concentrate on markets.
Trading:
For some reason, i decided to concentrate only on HDFC today. This has taught me a few lessons. First of all here is today's HDFC chart
Trade 1:
Long View, Entry: 1360, Time: 12:02
Exit: 1370, Time: 12:19
After observing for 30mins, i noticed that the fall in HDFC is coming to an end. I noticed that pace of fall in HDFC has slowed down. At around 12:00 i noticed other stocks like Infy, Reliance and BHEL making intraday highs. Expecting a reversal to happen, took a long position at 1360. Later i noticed, bank nifty making intraday low, nifty falling again. These created doubts in me, so i took the first opportunity to exit the trade. I exited at 1370, in just 15 mins. My minimum target was 1374, which was reached 2 mins after my exit.
Lessons:
- There is no reason to go long on a stock, if you the sector itself is down. I will be avoiding the mistake from next time.
- Once you take a position, wait for Tgt or SL to hit. Otherwise your emotions will always takeover the trade.
Trade 2:
Long View, Entry: 1355, Time: 1:21
Exit: 1363, Time: 1:24
Trade 1:
Long View, Entry: 1360, Time: 12:02
Exit: 1370, Time: 12:19
After observing for 30mins, i noticed that the fall in HDFC is coming to an end. I noticed that pace of fall in HDFC has slowed down. At around 12:00 i noticed other stocks like Infy, Reliance and BHEL making intraday highs. Expecting a reversal to happen, took a long position at 1360. Later i noticed, bank nifty making intraday low, nifty falling again. These created doubts in me, so i took the first opportunity to exit the trade. I exited at 1370, in just 15 mins. My minimum target was 1374, which was reached 2 mins after my exit.
Lessons:
- There is no reason to go long on a stock, if you the sector itself is down. I will be avoiding the mistake from next time.
- Once you take a position, wait for Tgt or SL to hit. Otherwise your emotions will always takeover the trade.
Trade 2:
Long View, Entry: 1355, Time: 1:21
Exit: 1363, Time: 1:24
After observing HDFC for nearly 2 hrs. I realized it wont come down below 1350. The best it could fall to is 1355. So placed an order to go long on HDFC at 1355 levels. This order got triggered at 1:21pm. This is the same time when nifty has breached its morning lows, with slight increase in volume. Stocks like Reliance, BHEL have made new low in futures. This made me feel that HDFC might also break the days lows and go down further. This view is probably right, as banking is the weakest sector today.
So i decided to place a cover order, when i noticed all the scripts rebounding to test the previous lows and HDFC started to rebound from my entry. I took that as an opportunity and exited from the trade. Only to later notice that its a false breakout and i actually entered HDFC at the best price possible.
Lessons:
One of the reasons, i thought Nifty and other scripts have broken the day low and are going to go down further is because of the increase in volume during the breakout. This error is consistently made by me. Looking at historical breakouts which are successful and which have failed. Comparing the rise in volumes in each case and determining a range to each of them would avoid such mistakes. It not only avoids, it also give opportunity to enter at best price and capture a good part of the move.
Trade 3:
Long View, Entry: 1390, Time: 2:48
Exit: 1367, Time: 3:28
Noticed that HDFC is likely to break out of this narrow 20pts(1355 - 1375) consolidation at around 2:30. So i got ready to place a long order. Just when i was about to enter, i got a phone call and by the time i ended it it was 12:48 and HDFC has already broke out of its trading range, so without thinking anything, i jumped in at market price. I got it at 1390. First thing i missed out is, it was a false breakout and i entered at one of the highest prices after breakout. It tested 1390 three time in 30mins, giving me a chance to get out. I haven't noticed any of these things and was waiting for HDFC to go much above 1390 and make me rich quick.
HDFC faded the breakout and entered back into the trading range. I was caught up in emotions about not to take any loss and i finally have to take the loss at 3:28, just before markets close.
Lesson:
- Never enter the markets in a hurry. There will always be opportunities by doing cool analysis.
- Never do other things for too long during markets hours.
- When you realized you made a mistake, get out of it fast. Don't make any fuss or let your emotions takeover.
So i decided to place a cover order, when i noticed all the scripts rebounding to test the previous lows and HDFC started to rebound from my entry. I took that as an opportunity and exited from the trade. Only to later notice that its a false breakout and i actually entered HDFC at the best price possible.
Lessons:
One of the reasons, i thought Nifty and other scripts have broken the day low and are going to go down further is because of the increase in volume during the breakout. This error is consistently made by me. Looking at historical breakouts which are successful and which have failed. Comparing the rise in volumes in each case and determining a range to each of them would avoid such mistakes. It not only avoids, it also give opportunity to enter at best price and capture a good part of the move.
Trade 3:
Long View, Entry: 1390, Time: 2:48
Exit: 1367, Time: 3:28
HDFC faded the breakout and entered back into the trading range. I was caught up in emotions about not to take any loss and i finally have to take the loss at 3:28, just before markets close.
Lesson:
- Never enter the markets in a hurry. There will always be opportunities by doing cool analysis.
- Never do other things for too long during markets hours.
- When you realized you made a mistake, get out of it fast. Don't make any fuss or let your emotions takeover.
- Don't always track only one script. The one you are tracking could just not move for the whole and and you will be left having no trading opportunities.
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