When I first started out as a trader, I sat in front of the TV waiting for results to be announced in a stock which had a good set up. Anchor on TV announced that a company made a loss of some 30-40 crores and I shorted the stock at lightning speed. After my entry, it made one red bar. Then the moment of truth. As I watched, a huge green bar was painted. Bar after bar of green candles. I went blank. By the time i could inhale and exhale, the stock was up 5-6%. 
Had no choice but to cut the huge loss. I was clueless as to how a company stock could go up 6% after posting loss.
Turns out the company in the previous quarter had posted some 70-75 crore loss. Present quarter loss was less than previous so the stock was celebrating.
After that, I never fooled around during result season. And if I was ever compelled to stay in a trade that I had already taken then i always hedged it.
Good old days of shorting anything that had even a small bad thing in it.
Had no choice but to cut the huge loss. I was clueless as to how a company stock could go up 6% after posting loss.Turns out the company in the previous quarter had posted some 70-75 crore loss. Present quarter loss was less than previous so the stock was celebrating.
After that, I never fooled around during result season. And if I was ever compelled to stay in a trade that I had already taken then i always hedged it.
Good old days of shorting anything that had even a small bad thing in it.
