6% Loss in HGI and 9% Loss in CHL

Click here to access all the articles of My NEPSE Trading Journey Series.

Himalayan General Insurance Company Limited (HGI)

The stock had just broken out from its most recent resistance. The volume was strong during a breakout. Thus, I bought a few shares the next day at Rs. 739 per share.

However, the stock began to lose after that. Although the stock had broken out of the resistance zone, a correction was probably due since it had gained for quite some time.

The market can remain irrational longer than you can remain solvent. I had to sell my shares because I was short of funds. Thus, I then sold the shares after about 20 days. I sold the shares at Rs. 690. This gave me a loss of about 6%.

Chhyangdi Hydropower Company Limited (CHL)

Decisive upwards gain supported by very high volume. A bullish signal, or so I thought.

If you have read my previous articles, you know that I have fallen prey to the volume trap multiple times. What I should really know is that volume spikes occur at the end of an uptrend as often as they occur at the start. In this regard, the dawn and dusk look and feel the same, except that one occurs at the beginning of a beautiful day and the other occurs at its end.

Bought at 188, sold at 172. About 9% loss.

Click here to access all the articles of My NEPSE Trading Journey Series.

One thought on “6% Loss in HGI and 9% Loss in CHL

Leave a Reply

Your email address will not be published. Required fields are marked *