Lets illustrate the trading emotion using an Intraday Trades,similar
emotions can occur over Swing trades and positional trades ranging for
weeks or even months.
9:15 AM: You watch as the
market opens. You are looking for a good buy entry point into Reliance
Infra@330 based on your analysis you think that Reliance Infra has
bottomed out after many days of correction stock has seen.
10:30 AM: Reliance
Infra inches upward till 333 for an hour from you entry price
ie.330,you are waiting for pullback near your buying point to take
trade.Reliance Infra then takes a small dip. You think, “Great chance to buy on the dip!” Originally you were planning to buy 2000 shares, 1000 for intra-day trading and 1000 for positional trading.
2000 shares? That means even if you successfully catch a Rs 5 stock price move, you only make a measly 10K? Better double that.
You buy ...
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