Trading on 28th Nov 2008

These are today's trade details:

Today i selected HDFC because, there was a meeting going on between RBI and banks and interest rate cut is expected by the market.

Long View: Entry: 1410 Exit: 1405.5

After tracking the markets for more than an hour. I observed HDFC looking pretty strong, its moving up when markets are moving up and falling only a little when markets are falling. So went long on HDFC at 1310 at 11:12am. I decided to have a stoploss as 1300, it broke once at 11:40 but recovered within a min and came back to entry level. It broke again at 11:42 and recovered in 2 mins. At this point i am worried that HDFC could break down at any moment and make a loss. At around 11:57PM, Nifty which formed triple bottom at 2730 broke down. This just added as a stimulus to my fear, i got out immediately at 1405.5 only to see that HDFC staying firm at and above 1405. It haven't gone down any further in spite of market going down by another 1 to 1.5%.

Short View: Entry: 1478 Exit: 1470

After missing the complete upmove in HDFC, i saw it struggling to move above 1480 for about 15mins and has fallen to 1470. At this point it was clear that HDFC would have correction after a good upmove. So waited for a small pullback and shorted at 1477 at 3:05 pm. In about 4mins HDFC started to fall. At the same moment, my trader friend has messaged me to short HDFC. This boosted my confidence about the trade. HDFC has then fallen down to 1457 in about 15 mins. My over confidence about this trade has blinded me in identifying reversal points. My target of 1457 has reached but greed took over me. Finally i realized the reversal in HDFC only after it reached 1470. I got out immediately at that price.

No Lessons today.... Only thing is i am vexed of trading this way. I don't want to have this sort of trading life. Things need a change and I will make that change immediately.