First Rule in trading profession is "You should know how to protect your Capital"
Next only Profit will comes into the picture..
Buying in the Top is almost = Suicide
Always...we trade with emotion based on news / breakout and etc...etc....when price is trading in the Top.....
But...once..you practice to trade in breakouts and news...when price is in the upper band....one day you will be murdered...when market crash like today....
The above chart "Motherson Sumi".........See it was trading in Top band and consolidated....we don't know...whether it breaks out go up and rally.....But...My Strong Point is "You Should Avoid Buying in the top" irrespective of News...even god says...I will not Buy...Because...wrong Habit...
What happened today Motherson Sumi.....Nicely Murdered.....BRexit......Breakout Failed....you are finished...
Waiting and Buying in the Bottom....When there is a Panic = Opportunity
On 8th June.....based on levels....I mentioned Jet Airways opportunity Buying bottom fishing level is nearing....Today...It hit and Bounced.......you are safe and buying in the low point.......moreover your capital is almost protected......
Today Two Examples........
Jet Airways
Tata Steel
Both Jet Airways and Tata Steel validated our Bottom Orange and bounced with out any hurdle........Opportunity and exit are in same day......
But...so many would have lost big money today on Tata Steel.....But...10001% it was not in buy mode....because it was falling from top and it has touched the bottom fishing orange today finally and bounced...
Green is Solid Rock Bottom / Final Bottom......that level is for buy and hold...
Message is, have patience for your level....Don't trade like a "Fool" when stock is trading in the higher range......crash will always happen at any day....so...your bad habit of trading everyday will kill you finally...
Be a professional Trader and not a Gambler.....Making Money is Easy and Retaining the Profit is a Skill and it is very difficult.
Take Care......Change your Attitude and Enjoy