Here's an account of today's loss trade in a banking stock named Axis bank. Below is a 5-minute chart of the same for reference. Scanning the chart we can see that the stock tanked down heavily in the previous session.
Price opened Gap down today. The open candle took support near Previous Day Low. Subsequent candles took the price higher for next 1 hour. Price found resistance near the current daily pivot 'p'. A double Top and RSI divergence manifested on the chart. RSI being resisted near 60 levels is a bearish forecast.
Coming to trade I took, my buy entry is marked in the chart. I hastily thought that correction at my buy entry point was complete. In fact, I wrote down on documentation paper 684.5 as my entry price. I didn’t wait for the price to offer that price level to me.
My stop was hit. I went through lot of emotions in my head. Later, at 1:15 P.M., price fell down to 685 giving a chance to enter long in the stock. Good Risk-Rewards ratio was also there. I didn’t take the trade. I was emotionally blank for the day.
Lessons:
Patience is the key to success in trading.
Wait for high probability set up to form.