I log here my after thoughts of loss trade. The scrip in consideration here is Adani Ports Ltd. Below is the 5-minute chart of the same for reference purpose. I chose this stock looking from day high list when it was around 30 minutes past into today's open.
I looked at the chart and the beautiful gap followed by a strong price rise and decided to go long. Another reason for going long is the confluence of '-P' and 'R1' higher up near 761. I put on higher daily pivots in the chart. Previous day 'r3' fell in conjunction with the above confluence. I was on look out for a pullback. I was in a hurry to trade. I didn’t even calculate Risk-Rewards ratio.
I didn't calculate where my entry point properly. I mistook yesterday's 'r3' to be today's. In the hindsight analyzing the morning price action I feel I would have been saved had I waited patiently for little more time for more price confirmations.
In the morning, price had opened 10 points Gap up and moved strongly 15 points higher within first 15 minutes. Summed up, price made 25 points rise within first 20 minutes. That's huge. I should have waited for a pull back of at least 7-8 points and looked for bullish signals. At today’s High, note that the RSI is kissing ‘86’ level.
Later when I put on additional daily pivots, I found price
had reached 'r4' in the morning itself. My stop wasn't triggered in the heat of
price action and I closed for 4.5 points loss instead of 3.5 points. I take
responsibility for that. In fact when price was taking resistance near 'r3', I
wanted to go short. Then, I could see further price fall ahead. I was
emotionally drained out by then. I have marked the pullback opportunity on the
chart. Price fell to ‘r1’.