Trading and investing are to different things. While investing is for long term duration, trading is for very short term so while trading it is necessary to follow stop losses very strictly. JUST SEE WHY ?
Yesterday we mentioned that " As shown in above chart there is positive divergence ( price making lower low while indicator making higher high ) looks like now it will target 5170-80 / 5200 in next 2-3 trading sessions. Stop loss for this trade will be today's low 5120.95 ". in this post http://kolhapuritrader.blogspot.com/2011/11/fpllow-up.html
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| FREE FALL AFTER STOP LOSS TAKEN OUT |
As shown in the chart nifty is trading above the support ( i. e. low) almost for four and half hours but once the intraday support is taken out ( i. e. 5 min candle closed below 5120.95 there is free fall and nifty falled almost 60-65 points within one and half hour. So if someone not followed stop loss after buying according to positive divergence on hourly chart he/ she has to bear the loss, which otherwise has been limited if stop loss has been followed.
CONCLUSION : DISCIPLINE IS IMPORTANT REQUIREMENT TO BECOME A SUCCESSFUL TRADER.
DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.
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