I remember a trade at the time when PV Narsinha Rao led congress had to prove its majority on the floor of the house and the few votes from Zarkhand were making a difference in the very thin majority which the Govt had. I had a large short position and news came on the night that Govt most likely will fall....
I was expecting the market to open atleast 30-35 points down ( talking about RIL as we used to trade in that ) and I was expecting to make a large profit at open .Market opened just 7-8 points down and stabilised at about 5 points down from the earlier day's close...I asked myself ,here Govt is likely to fall and the value of this event only Rs 5 ? There is something wrong and market was telling us that it does not want to go down.I covered my short position.Market closed little above the previous close.
As it happened the votes were managed and the Govt survived in the late evening session and the market opened with a gap up and continued in a strong up move for next 2-3 days....if I had not listened to what the market is saying, it would have been losing trade ....so listen to the market...
Smart_trade
I was expecting the market to open atleast 30-35 points down ( talking about RIL as we used to trade in that ) and I was expecting to make a large profit at open .Market opened just 7-8 points down and stabilised at about 5 points down from the earlier day's close...I asked myself ,here Govt is likely to fall and the value of this event only Rs 5 ? There is something wrong and market was telling us that it does not want to go down.I covered my short position.Market closed little above the previous close.
As it happened the votes were managed and the Govt survived in the late evening session and the market opened with a gap up and continued in a strong up move for next 2-3 days....if I had not listened to what the market is saying, it would have been losing trade ....so listen to the market...
Smart_trade
Thanks