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Time and again we do mistakes and learn from them. This particular trade goes in my bucket of anti-Portfolio. Here is how I missed taking a trade on Prince Pipes Fittings #PRINCEPIPE, which went from 113 at the time of consideration to above 250 currently, without me.
Situation at the time of appearance in Watchlist:
- Appeared in July end with good compression (high no. of blue dots)
- Didn't have much trading history, so Weekly Trend was Yellow
- Daily Trend had turned from Red to Yellow - indicating probable change in trend, a positive sign
- Appeared in July end with good compression (high no. of blue dots)
- Didn't have much trading history, so Weekly Trend was Yellow
- Daily Trend had turned from Red to Yellow - indicating probable change in trend, a positive sign
How I should have taken the trade:
- Ideally, my entry should have been on 30th July above Rs. 112, with Stop Loss below Rs. 105.
- However, the June quarter results were due the next day on 31st July, and I thought of avoiding high volatility.
- Ideally, my entry should have been on 30th July above Rs. 112, with Stop Loss below Rs. 105.
- However, the June quarter results were due the next day on 31st July, and I thought of avoiding high volatility.
Reasons for not taking the trade:
- Next day, Company announced 19% fall in Revenue & 57% fall in Profit.
- Poor results + ongoing COVID lockdown at that time turned me negative.
- The negative aura around was my primary reason for not taking the trade.
- Next day, Company announced 19% fall in Revenue & 57% fall in Profit.
- Poor results + ongoing COVID lockdown at that time turned me negative.
- The negative aura around was my primary reason for not taking the trade.
What happened next?
The stock rose by over 100% in a matter of fewer than 2 months. OOPS!
The stock rose by over 100% in a matter of fewer than 2 months. OOPS!
My learning:
- My emotions impacted my decision making.
- Despite poor results, the stock wasn't going down, and this should have been a signal to me to enter.
My personal diary has many such Errors of Omissions & Commissions, and Hits as well. This one finds a prominent place.
- My emotions impacted my decision making.
- Despite poor results, the stock wasn't going down, and this should have been a signal to me to enter.
My personal diary has many such Errors of Omissions & Commissions, and Hits as well. This one finds a prominent place.
