In the stock market, there is no guarantee. The stock can do all the right things technically and still end in total disaster. That’s why it’s important to keep a stop loss or have an exit strategy.
Gokaldas Exports Breakout Disaster.
Source: Chartalert.com
Gokaldas Exports stock did a big candle breakout. It generated huge excitement but eventually it turned out be a big false breakout and stock tanked big time without an exit opportunity
Source: Chartalert.com
Just see the importance of stop loss. Exiting even at 80-85 which was a huge loss would have been better than waiting. Never turn a loss into long-term investment if stock behaviour is not as expected.
DLF Breakout ended abruptly due to demonetization
DLF stock broke out and did everything to sustain above the breakout level but then demonetization announcement happened and resulted in breakdown.
There are some accidents you just cannot avoid. It’s pure bad luck. The best way to deal with such situation – Take a loss and move on…rather than hang on and bear the pain daily.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers