1. Don't close your eyes when you see something uncomfortable. Just Sell and Avoid the emotional Pain
2. Don't question the market's wisdom
Case Study: Lupin
Lupin stock was in a strong Bull Market and it looked quite attractive at 1400
Here's Lupin just hanging on to 1400. These stocks deliver a powerful lesson on how market deals with bluechips when things are down and out pic.twitter.com/CrU3MMbOfR
— Deepak Singh (@smarket) April 21, 2017
Lupin was a Buy at 1400
But then Lupin stock did this: It broke down below 1400.
Now, I have always said - You never know what stock will do. You make an assumption and put a trade hoping a trend will stick. But what happens when things don't go your way - you recognize it and say It's better to exit. This is what I said on Twitter: see the date
Breakdown below 1400 in Lupin is disturbing. It's better to exit and watch than watch in pain. One can always jump back in https://t.co/JdoPwH6SvW
— Deepak Singh (@smarket) April 24, 2017
Here's what Lupin stock has done since then: Just see how smart move it was to exit at 1370
In the Financial market, it's so important to recognize what market is doing rather than close your eyes and fight against the trend. I hope this stock will help you understand this simple concept. If market says: Exit...Just exit.
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers