The Lazy one

Amar Raja Battery. Well what to say, I bought Amaraja battery at 778 in hope for it has bottomed out but it was false breakout. I had a SL of 740. So got out of this trade. Another reason to exit was it has no direction. It was a lazy stock

Why did I called this stock a lazy one ? When we trade in cash in equity, we can only trade in one direction. In futures and options we can trade in both directions. So any stock which has no direction and eating up our time is needed to exit. Opportunity cost is our intangible enemy, which we dont even know is eating our purchasing power.

Every stock needs to be in direction either upside or downside. We can hold a stock which is in range knowing that it will breakout if we are already in decent profits. Because if it breaks out downside we will have margin of safety. But if it does goes in range when we are in loss, then there is no point in waiting to breakout upside. Just cut your losses and move on to next trade.