India Cements - Revenge Trade 101 :) :) :)
A Beginner's Guide - How to do Revenge Trading :) - Inspired by True Story !!!
Few years back, when I was naive in Technical Analysis, I took an Intraday position in India Cements basis someone's Call in Social Media.
It ended up hitting a SL resulting in a Loss of Rs. 111 :) Back then I used to lose money on everything F&O, Intraday, Equity - because "I was always dependent on Calls from someone... When the market goes other way - I used to Panic because that Someone won't respond to our queries or there would be no option for us to ask questions in those Telegram Channels"
As a "Smart Trader" I used to do Revenge Trading in F&O by taking Opposite positions because the market went the other way earlier. And the Market so Humbly and with Full Love and affection - SLAP ME ON BOTH SIDES - Ha ha
Later - I spent time on Learning and finally decided to take my real Revenge
To Avenge my Loss of 111 (Rs.)...
Took Revenge Trade at an entry price of 222 (Rs.)...
And personally Set up a %Target of 111% :) :) :)
Today - the price has reached 374 which is 68% from my entry of 222.
One of my student said India Cements - Looks Very Scary from Fundamentals Perspective and he said 111% Target looks too steep and extremely Risky
Really ??? Look at the Chart again. The Price has Beautifully completed a Breakout of a 17 Year Rounding Bottom Pattern for Targets of 394, 430, 470 and 586
Look at the Quarterly Chart - Are there any sudden Crashes / Volatile or Erratic Moves ? Despite having a Crappy Fundamentals - how can the Chart be so Neat and Clean ?
Understand the Reality - the market does not move as per Fundamentals - its just a Perception.
Let's quickly review the Math:
Entry Price: 222
CMP: 374
Profits: 68% already done
Now that the Breakout is completed on Weekly Closing and also if the price sustains at CMP for another 3 days - it would confirm the Breakout at Monthly closing - setting the 68% on Stone. It won't fall below after that
To reach the 111% Target from my Entry price of 222 - its just a matter of 25% more upside from CMP. After a 17 year Monthly Pattern Breakout - is it that hard to get 25% more ? Looks much simpler than before - No ?
Worrying too much about Fundamentals might make you a Mental :) (sorry - this is Hard reality)
Summary:
1. Don't take Revenge Trade with you loose - your Emotion will make you a Fool - same day
2. Wait for Opportune time - if I can Avenge my Rs. 111 loss with 111% gain - so can you
Learn First, Understand how the Market really moves (Don't have any Bias that Fundamentals, Valuations, PE, ROCE, ROE, EPS would offer best results) and Wait for the Right Entry point from the Market (Not from any Call Giver in Internet) and Avenge your loss Taking the Side of the Market (Not Against it)
Happy Trading :)
Disclaimer:
3+ Years Teaching Experience in Stock Market - Technical Analysis, Behaviour Analysis, Advanced Patterns, Emotional Management, News based Trading...
We are NOT SEBI Registered and Our focus is NOT providing Buy/Sell Recommendations/calls. Primary Objective is to provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes.
We strongly suggest our followers to "Learn to Ride the Tide irrespective of its Side"
*** Important *** Consult your Financial Advisors before taking any positions
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
Few years back, when I was naive in Technical Analysis, I took an Intraday position in India Cements basis someone's Call in Social Media.
It ended up hitting a SL resulting in a Loss of Rs. 111 :) Back then I used to lose money on everything F&O, Intraday, Equity - because "I was always dependent on Calls from someone... When the market goes other way - I used to Panic because that Someone won't respond to our queries or there would be no option for us to ask questions in those Telegram Channels"
As a "Smart Trader" I used to do Revenge Trading in F&O by taking Opposite positions because the market went the other way earlier. And the Market so Humbly and with Full Love and affection - SLAP ME ON BOTH SIDES - Ha ha
Later - I spent time on Learning and finally decided to take my real Revenge
To Avenge my Loss of 111 (Rs.)...
Took Revenge Trade at an entry price of 222 (Rs.)...
And personally Set up a %Target of 111% :) :) :)
Today - the price has reached 374 which is 68% from my entry of 222.
One of my student said India Cements - Looks Very Scary from Fundamentals Perspective and he said 111% Target looks too steep and extremely Risky
Really ??? Look at the Chart again. The Price has Beautifully completed a Breakout of a 17 Year Rounding Bottom Pattern for Targets of 394, 430, 470 and 586
Look at the Quarterly Chart - Are there any sudden Crashes / Volatile or Erratic Moves ? Despite having a Crappy Fundamentals - how can the Chart be so Neat and Clean ?
Understand the Reality - the market does not move as per Fundamentals - its just a Perception.
Let's quickly review the Math:
Entry Price: 222
CMP: 374
Profits: 68% already done
Now that the Breakout is completed on Weekly Closing and also if the price sustains at CMP for another 3 days - it would confirm the Breakout at Monthly closing - setting the 68% on Stone. It won't fall below after that
To reach the 111% Target from my Entry price of 222 - its just a matter of 25% more upside from CMP. After a 17 year Monthly Pattern Breakout - is it that hard to get 25% more ? Looks much simpler than before - No ?
Worrying too much about Fundamentals might make you a Mental :) (sorry - this is Hard reality)
Summary:
1. Don't take Revenge Trade with you loose - your Emotion will make you a Fool - same day
2. Wait for Opportune time - if I can Avenge my Rs. 111 loss with 111% gain - so can you
Learn First, Understand how the Market really moves (Don't have any Bias that Fundamentals, Valuations, PE, ROCE, ROE, EPS would offer best results) and Wait for the Right Entry point from the Market (Not from any Call Giver in Internet) and Avenge your loss Taking the Side of the Market (Not Against it)
Happy Trading :)
Disclaimer:
3+ Years Teaching Experience in Stock Market - Technical Analysis, Behaviour Analysis, Advanced Patterns, Emotional Management, News based Trading...
We are NOT SEBI Registered and Our focus is NOT providing Buy/Sell Recommendations/calls. Primary Objective is to provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes.
We strongly suggest our followers to "Learn to Ride the Tide irrespective of its Side"
*** Important *** Consult your Financial Advisors before taking any positions
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.