Lot of us have tendency to put buy or sell limit orders at a price which is very close to current market price(CMP) but not at CMP. For example if a stock is trading at 92.50, we are more inclined to buy at 90 (few paisa lesser) and vice versa while selling. Some how it gives us a feeling that we have saved some money by buying at lower rate. By following this we may save some money but ultimately chances are that one bad decision will give much more negative affect than all small transactions put together.
This happened to me this June 06.
Rolta was selling at 203 and I put an order for selling 75 shares at 203.50.
Next day I realized that it did not sell and Rolta closed at 185. And after that slide continued and after few days Rolta settled at 135. Imagine just to get extra 75 paisa I lost approx. 5K. So moral of the story is when you want to buy or sell just do it. Do not fret over few pennies here and there.
Passing Thought.
Height of Optimism:
Metro will be operational in Bangalore in next few years
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment