Once the stock breakout, wait for the rally to sustain with decent volumes
One needs to develop strategies that provide confirmation on
Stocks calls | AstaGuru | vintage wines
Bull trap definition A bull trap is a classic definition of a false breakout. In general, the buyers enter a trade with a strong conviction of an upside, however the stock fails to deliver the upward move and in turn hits the stop loss or support levels.
Such incidences not only affect the trading morale, but raises doubts on the trading strategies. Subsequent triggers in the stop loss induce “fear of uncertainty” and feelings of “staying away” enters the system. What to do when you fall in a Bull Tap?? The first response should be to exit the trade, ...
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First Published: Thu, May 21 2020. 17:28 IST