I bought a stock called Sesa Goa today at NSE. It is the stock of the season now and despite being sure that I would make profit in this stock, I ended up almost making zero profit had it not been for the late order boost. The day started with initial rise in the stock value where it almost touched 80% of the profit I yearned for. I did not sell my stock thinking that it would reach the figure that I quoted and I waited. It traded at that price for some time and it began to tumble. I was confident that it would rise again. But no, it kept declining and was steady for a while. Again declined for sometime and was steady. By the time it reached the closing hours of the day I did not even have 10% of the profit that I initially expected. I took a bait and I decided to make loss whatever be the case. I waited for the last 5 minutes of intraday closing to sell my stock and finally I could gather a meagre 20% of my initial expected profit.
Lesson learnt: If the stock market is up and you still haven't reached your expected profit mark you may wait and anticipate. If the stock market is down and the stock hasn't reached your expected profit mark but still you are having decent profit, sell that freaking stock. Atleast you will end up satisfied at the end of the day. The catch here is, what should be your expected profit margin? It varies from person to person.
You can be the don in your house but if you got your money into stocks, more so into day trading, then even the crudest of criminals would be left pissing in their pants if you do not respect the bull. One may have participated in Spanish bullfighting and could have managed to eclipse the bull with shear determination and guts but never ever try to take the stock bull by its horns. This is what the stock market bull looks like.
This bull doesn't move. It looks fierce, strong and bulky. It is always lively, exciting and raring to charge. Even the best of investors will never be sure of a particular stocks future. It's all in the speculation that stock exchanges operate all over the world. The one who respects the bull and invests sensibly can survive in this chaotic market. Fear the bull or else be prepared for the kill.
2 comments:
Hmm, seems like you have gotten well into Stock trading. Your views would help novices like me gain insight into the trading world. Need more of these.
You remarked that Stock trading is not for the weak-hearted; i wonder if a strong-hearted guy could really remain strong, esp in these times when the market is wobbling.
I shall post my views if I make decent profit in stocks. Rule of thumb is not to be greedy and be contended with the current profit. I've learned that lesson in my first day trading session. There is always another day you can make profit. It's easier to say than implement those. I'll try to implement rule of thumb.
You'll get used to profit-loss scenario if you trade on a consistent basis in a month. So this weak hearted guy will turn strong hearted just over a small matter of time. And strong hearted guy turning weak means:
1) He has bad luck stuck in his pocket even while he is sleeping.
2) He might have invested heavily in couple of stocks to repay some of his loans or to fulfill his basic necessities and that's when you know he is at a point of no return in stocks.
PS: Market always wobbles and it is upto the smart investor who should know when to enter and leave the market with decent profit in hand.
One may not control his profit in stocks but one can surely control his greed for profit in stocks and that's when he is termed as a wise investor.
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