A plunge in Indian Stock market

[sspms2002]

Today was a day which left me with an Important question to answer for myself..

Anyways i started defensively and reduced my default share size to 200..in My first trade i booked 300+ adn the second trade took my P&L to 550 in profit.

I was content after yesterdays loss..so i just kept watching with out taking much positions..

Then i found a stock which invited me to take a position...I went long 400 shares in TVS motors at 248..it was moving smooth till 249..and then it rebounded to near my price..i held it..it started moving up again and touched 249 and then started to go for 250...it touched 250+ , traded there for 15 minutes and started coming back..

I held and saw the open profit decrease from 800+ to 0...yes it came back to my price..

I held it because it seemed strong to break its high of around 253...but alas when it came back to my price , i was cursing myself like hell..

It again started moving up..and touched 249..and then retraced back to my price and i exited flat.....but it started moving up again then..and with in minutes it was above 250.60...a potential 1000+ profit gone down the drain...

After some time it touched 252 and closed at 251..

Stocks Traded: TVS Motors, ITC etc..
P&L : Green 510 after commissions


To Senior Pros: If s stock is strong, how do you guys decide when to exit in profit. I know we can exit and take a position back...but in this case we cannot have a good price and will get difficult to hold whiplashes...

Also i am seeing strong stocks give good move in last 1 hr...

 

[timepass]

If s stock is strong, how do you guys decide when to exit in profit. I know we can exit and take a position back...but in this case we cannot have a good price and will get difficult to hold whiplashes...

Exit partially at some fixed level, e.g. today maybe book out half the quantity at 250, hold the rest for further gains.

If it retraces, and if you still believe in the trend, add to the existing position. That way you have effectively reduced your purchase cost.

If the trend is iffy, it will allow you a safe exit.

 

[sspms2002]

Exit partially at some fixed level, e.g. today maybe book out half the quantity at 250, hold the rest for further gains.

If it retraces, and if you still believe in the trend, add to the existing position. That way you have effectively reduced your purchase cost.

If the trend is iffy, it will allow you a safe exit.

Thanks Timepass..I had not thought about exiting partial...i will try to utilize it...

 

[sspms2002]

Today was a slow day for me...I started defensively and booked 350 in profit in first trade. 2nd trade i lost 200 as market and stock was stuck and were not moving much..

I kept watching for some more time as stocks were not giving good moves..so i started flipping...In that process traded a few other stocks with half my size but P&L remained same...

Mean while i was also looking at GAIL and JETAIRWAYS...both of them give good moves when in mood..I took a position in JET Airways...but was not able to hold the whiplashe and wiped my profit...turned flat now..

I was also seeing that GAIL was consolidating at around 425..426, and was preparing for upmove...i went long as soon as it broke 426...i got a fill at 426.25....it went a little up and came back to trade at 426...it again came up past my price , but i was sensing that the upsteam has decreased and it may not move up....I though of exiting if it retraces below 426.25....and alas it went below it...and i had no mechanical stop...and i just kept staring at the price instead of hitting out...

I kept staring at it till it reached 424..and i booked 800+ in loss on my 400 shares...
I am getting to realize that when hitting out do not think much or better have mechanical stops..


But i also sensed that GAIL is having a good steam downwards now..so after hitting my Out i took 400 short at 423...I rode that position till 420 and booked 1200+....

I had to leave for office then..but it seems GAIL traded at 415 and now it came back to 425...

I will also add GAIL to my trading list...

Stocks Traded: many
P&L : Green 451 after commissions

 

[simplebuthard]

it is interesting to see commentry about your trades... this reminds me first few months while i traded in equities....

You have to go still lot of way and best wishes for you....

 

[sspms2002]

it is interesting to see commentry about your trades... this reminds me first few months while i traded in equities....

You have to go still lot of way and best wishes for you....

Yes Simplebuthard..Thanks for your wishes...iam writing my commentary so that it remains in my head...but nervelessness i am doing the same kind of mistakes again and again..but at the same time learning a lot..

Certainly now i have started to feel good about my default size of 400 shares..

 

[sspms2002]

Hi Seniors/Timepass/Simplebuthard...What all areas should i focus on to have better results....any suggestions will be worked on....

 

[simplebuthard]

Hi Seniors/Timepass/Simplebuthard...What all areas should i focus on to have better results....any suggestions will be worked on....

Based on your commentry, i guess you are taking trades just by watching the price movements in market watch but not looking charts.

If it is the case, i will suggest you to look charts in different time frames before taking a entry.

 

[sspms2002]

Based on your commentry, i guess you are taking trades just by watching the price movements in market watch but not looking charts.

If it is the case, i will suggest you to look charts in different time frames before taking a entry.

Yes Simplebuthard, i trade based on market depth..level 1 and level 2 quotes..
I also look at 1 min chart..but i guess i am not looking much at other time frames...

 

[timepass]

Hi Seniors/Timepass/Simplebuthard...What all areas should i focus on to have better results....any suggestions will be worked on....

Yes Simplebuthard, i trade based on market depth..level 1 and level 2 quotes..
I also looking at 1 min chart..but i guess i am not looking much at other time frames...

You are generally in the right direction. It may feel like you are trading from your gut, but your gut is digesting a lot of experience and information before suggesting a trade.

A small hint : In the liquid scrips, the 15 min candle usually does not stray from VWAP(4 periods) for more than 1 candle.