12% loss in 17 seconds

General
1

I took a trade in a stock called Optiemus. Bought at 248, kept stop loss at 203, SL touched today at 3.29.43 PM, price went back to 229. Last minute candle opened at 236, low at 197, closed at 236.

While I don’t trade in a stock with less than 500 crore market cap, this move indeed surprised me. A lesson for trading in stocks beyond Nifty 500.

I know all of you day traders must have experienced this wild swings, but this is new for me, more so when this happened within seconds, literally.

Just posting here for my own future reference, and for anyone else who may find it useful :bookmark_tabs:

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So you took trade on 14 oct, right?

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Yes, bought the shares on 14th, sold yesterday.

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Screenshot 2022-10-22 at 11.51.01 AM
Screenshot 2022-10-22 at 11.51.01 AM1920×1059 155 KB

I actively trade in <500 market cap stocks because it gives explosive moves, but I would avoid taking a position in a stock that is not even trying to make fresh highs.

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Some <500C MC stocks to watch for the coming weeks.

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I am more of a scalper with delivery. I don’t need any fresh highs or 52 week highs or ATHs, I need movement, I need momentum.

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This is not necessary, it’s always better to trade with the tide than against it. :grinning:

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Going against the tide exists in investing, while everyone else is letting a stock go, someone finds value in it and collects it. I am doing pure momentum trading, no price increase, no touching it. Sometimes Nifty 500 universe is not providing opportunities, so looking at the entire cash segment with a minimum of 500 crore market cap. And yesterday this happened.

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9

If you will look beyond Nifty 500, these accidents will keep happening every now and then

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What are those 2 lines?

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And time frame of trade is 3min?

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My universe is just down to nifty 100. No matter how good the stock is I won’t touch it unless it is part of nifty 100.
I know I have missed out on many opportunities because of this. But it’s fine.

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Moving averages. 10,30 - Week.

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Yes, it hasn’t happened till now, and it is possible that it will happen again.

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No, I take trades viewing day chart, and the trades will be active for weeks, a couple of months even, until they hit the target or stop loss.

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In those 3-4 images of stocks, do you expecting for upside movement or downside?

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Of course, each one has a different strategy, right from the stock universe to booking profits.

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If equity, then we need upside, and not every stock is in FnO, so only upside I guess.

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19

So i think, here 10 MA is considered as support. A pullback.

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Depending upon which MA we choose, we can call something is in momentum or not. Say for investing people don’t choose anything less than 50 MA and 200 MA. But for trading, I will call something is in momentum only if price crosses 10 MA, someone else may take the trade if price crosses 5 MA. Of course, as the chart is increased from days to weeks, what seems like a momentum on daily or 3H chart may simply be 1 small move on weekly chart, insignificant, unreliable.

It all depends on the kind of trade we want to take w.r.t. capital, duration, target etc.

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