I generally trade in stocks whose range I know. For example, Edelweiss used to trade between around 63.00 and 65.00, Ballarpur between 43 and 46, PFC between 368 and 376. I would buy if the prices were low or short if they were near their daily highs.
But since the past few days, everything has turned upside down. The range in which the stocks trade has broken, and I don't know which direction they will go. On last Friday and this Monday, I bought Edelweiss since they were at the lower end of their range, but with the markets falling, they also fell, and I ended up making losses. I have traded only one day in this entire week because of this. Edelweiss's close price on Friday was 56.75, with a low of 55.80. I could buy on Monday, since the market fell heavily in late afternoon on Friday, and should go up a bit before if it starts falling again (if it does), but it could also fall further straightaway.
I don't have much experience of the market as it is not long since I started trading and I'm facing the markets going down for the first time.
Is it possible for anyone to tell how serious this fall is? Will it be start going back to its previous week's levels next week, or is it a short-seller's market now?
I talked to my broker and he said if the market goes down, all the stocks will go down, and at the same time he gives positional buy calls everyday. If Nifty is made up of only 50 stocks, why should it going down also mean a fall in the prices of all stocks?
But since the past few days, everything has turned upside down. The range in which the stocks trade has broken, and I don't know which direction they will go. On last Friday and this Monday, I bought Edelweiss since they were at the lower end of their range, but with the markets falling, they also fell, and I ended up making losses. I have traded only one day in this entire week because of this. Edelweiss's close price on Friday was 56.75, with a low of 55.80. I could buy on Monday, since the market fell heavily in late afternoon on Friday, and should go up a bit before if it starts falling again (if it does), but it could also fall further straightaway.
I don't have much experience of the market as it is not long since I started trading and I'm facing the markets going down for the first time.
Is it possible for anyone to tell how serious this fall is? Will it be start going back to its previous week's levels next week, or is it a short-seller's market now?
I talked to my broker and he said if the market goes down, all the stocks will go down, and at the same time he gives positional buy calls everyday. If Nifty is made up of only 50 stocks, why should it going down also mean a fall in the prices of all stocks?