I took Ashwani's tip for Peninsula Land , and bought 100 shares.But its gone down and I'm in pain .
Seniors pl. help me , as to what I should do with this stock?????????
Hi Arul,
First of all,a very warm welcome to you.
Now refering to your question above............when one enters into any trade,the possibility of a move the other direction is always there.Therefore,not only is the entry important,but what you would do if it goes south.Thus the importance of a stop.......at what area would you pull the plugs on the trade?(Think the person concerned who alerted you of the trade must have surely given an entry point,stop point,and a possible target area).
Next point.........not only should you have a stop,but you gotta have some sort of a money management discipline that will dictate to you the number of shares that you are getting into.The fact that the previous pivot low is not violated yet and you are in pain already means that the number of shares bought was too much.To put it very simply,no pain should be felt on the trade hitting your stop loss.
And another little point...........there are many who will throw around "tips",some trade what they throw around,most make money from the people that they give "tips"to.Whether you come to a trade because of something you saw on a chart,or something that a newsletter service gave you,or something that you picked out of some magazine or newspaper........that decision to take the tip is yours and yours alone.If the trade succeeds,all credit is yours.And if it fails,all blame is yours.
My friend,wouldn't be any harm ,I am sure, to pick up some knowledge of trading the markets.It's not as complicated as many suggest........but it ain't that easy as well.Like rocket science or brain surgery,in stock trading too........education is an important pre-requisite before actually plonking money down into actual trades.
As far as Peninsula Land is concerned,it is still very much in a short term and intermediate uptrend,its previous pivot low yet to get violated........so far so good on this one,but the point is:Can you take it,if this falls to 650(uptrend still on even if we get to 650).........if this gives you some up move,you could exit and treat this whole exercise as tuition money to the markets.
All the best!
Happy Trading!
Saint