HDIL is in downtrend and correlates very closely with the market. If market moves down, stock follows it. Could this stock be a good BUY at this level!!! May be but comes with HUGE risk. What if it fails the 50-60 area!!! Stock could further go down. If we decide to buy the stock now we expose ourselves to significant risk, instead wait for market to setup. Yes we might loose some of the UP side in the stock but at least by then we know we on right side of the trade, Isn't it!!!
Reliance capital is also in downtrend as can be seen from below chart, however the interesting part is the downside risk. If the stock slips below 220 area then it can quickly move to 150-100 area and then further continue down to 50. All this will not happen in a day or weeks but could take several months. Once we are in the stock, we tend to HOLD onto it even if we are in deep losses.
- If you are not an expert then STOP bottom fishing, even experts have lost doing it.
- Always have a exit plan by that we mean have a STOP loss limit, its better to take small loss and invest in another better stock than continue to accrue your losses by being in the bad stock.
- Understand markets and how stock correlates with the market direction.
- STOP listening to news and advises, instead INVEST time in understanding some basics of trading and investment.
- ALWAYS HAVE A ENTRY & EXIT PLAN