A plunge in Indian Stock market
- Thread starter sspms2002
- Start date
I refrained from trading today too..
I just watched full day the candlestick chart of MARICO , i am holding it from 384 price level..
It opened flat today and then went up to 386...And then started dancing all day at around 384...
At end it made a very drastic move down....I just watched it..No action taken...(It was having a good move up and trying to break 383 level and then suddenly it started falling)
The i bought another 100 shares at 373..and now i have 300 shares of it.
I guess it closed at 376. There was a Bulk deal in it today where volume was very high in one of 5 min TF.
Also today's delivery volume as per NSEINDIA is 78% which is very high..Not sure if that has any importance..
I just watched full day the candlestick chart of MARICO , i am holding it from 384 price level..
It opened flat today and then went up to 386...And then started dancing all day at around 384...
At end it made a very drastic move down....I just watched it..No action taken...(It was having a good move up and trying to break 383 level and then suddenly it started falling)
The i bought another 100 shares at 373..and now i have 300 shares of it.
I guess it closed at 376. There was a Bulk deal in it today where volume was very high in one of 5 min TF.
Also today's delivery volume as per NSEINDIA is 78% which is very high..Not sure if that has any importance..
Yes in Hindsight it seems i bought at a high price..
But the day before it bought it , it made its 52 week high of 407 and then on next day after Huge market fall it went down and i bought it..
It was difficult to perceive if that was still a high price at that time..
No sure how Seniors would analyse when to buy?
only thing that could have stopped me buying would have been a though that it still is not at any previous level..
But the day before it bought it , it made its 52 week high of 407 and then on next day after Huge market fall it went down and i bought it..
It was difficult to perceive if that was still a high price at that time..
No sure how Seniors would analyse when to buy?
only thing that could have stopped me buying would have been a though that it still is not at any previous level..
Buying at 52 High levels has its own pro and cons.
Some reference reads
http://articles.economictimes.india...stock-touches-52-week-52-week-highs-new-highs
http://www.investopedia.com/university/fiveminute/fiveminute7.asp
Some reference reads
http://articles.economictimes.india...stock-touches-52-week-52-week-highs-new-highs
http://www.investopedia.com/university/fiveminute/fiveminute7.asp
My dear friend, HOPE is never going to HELP in stock markets.
Read this article shared by Amitji in one of his threads
Though it is in the context of INVESTING , it applies very well to trading also.
http://www.traderji.com/trading-psychology/92832-strong-trading-mind-3.html#post944769
I am also a beginner like you but what i understood from the article is , in trading if we initiate a position backed with a strategy , a plan , we have fair chances of success. Even if we are stopped out, we have room for improvement , working on the strategy and trading again.
but taking a position in a HOPE that prices will rise , amounts to gamble as it's matter of pure luck.
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Hmm, OK read the below very carefully. What does it mean to buy low and sell high?.
What it means is you buy/sell on pullbacks and retraces. Pullbacks happen in trends and retraces happen in mix of swings and ranging markets.
What you did is, you bought at the very top where institutions sell to make profits and not necessarily to initiate or add to their positions. They ALWAYS add or take new positions on pullbacks and retraces.
To understand this concept more better , take ANY clean chart and see how prices moves. It moves in waves and as a result people developed so called elliot waves and what not, but that a different topic for another day.
The very basic building block of price movements is pullbacks and retracements. This is another reason why fibs work because institutions use them to gauge the length of retracements so they can buy low(best lowest price) when prices is moving upwards and sell high(best highest price) when prices is moving downwards.
Newbies don't understand this basic movement of price and as a result they always buy at swing highs and sell at swing lows and right after that prices retraces and hits their SL and then price again goes in their favor. Nothing frustrates a newbie more than this while trading.
I hope the above explanation is clear when they say buy low and sell high.
Side note : it was not hindsight. It was at 52 week high , so you must wait for a pullback or retracement before buying. you will have a better chance of getting in the move and not get your Stops taken out.
Learn to read price action and TRY TO ENTER at correct locations and like i said earlier if you are not moving with institutions you are going to lose.Hence try and understand how institutions trade.
:thumb:
What it means is you buy/sell on pullbacks and retraces. Pullbacks happen in trends and retraces happen in mix of swings and ranging markets.
What you did is, you bought at the very top where institutions sell to make profits and not necessarily to initiate or add to their positions. They ALWAYS add or take new positions on pullbacks and retraces.
To understand this concept more better , take ANY clean chart and see how prices moves. It moves in waves and as a result people developed so called elliot waves and what not, but that a different topic for another day.
The very basic building block of price movements is pullbacks and retracements. This is another reason why fibs work because institutions use them to gauge the length of retracements so they can buy low(best lowest price) when prices is moving upwards and sell high(best highest price) when prices is moving downwards.
Newbies don't understand this basic movement of price and as a result they always buy at swing highs and sell at swing lows and right after that prices retraces and hits their SL and then price again goes in their favor. Nothing frustrates a newbie more than this while trading.
I hope the above explanation is clear when they say buy low and sell high.
Side note : it was not hindsight. It was at 52 week high , so you must wait for a pullback or retracement before buying. you will have a better chance of getting in the move and not get your Stops taken out.
Learn to read price action and TRY TO ENTER at correct locations and like i said earlier if you are not moving with institutions you are going to lose.Hence try and understand how institutions trade.
:thumb: