Unitech

I agree. If one wants to trade in the stock, then there is no time to think. One must act by instinct. A share fall has to be accompanied by a sharp rise. In fact, one can see that after dipping nearly 50%, the stock rebounded to close at 35% down. So, a sharp trader who caught the trade at the bottom would have made a killing by the end of the day.

Even now, such a steep correction will probably meet with some short-covering tomorrow or day-after and so people who have bought today may make some gains.

However, this sort of thing is not for everyone. You need strong nerves and sharp instincts to be able to do it. Also, you must have the mental attitude to bear a sharp loss if your bet goes wrong.

From an investment perspective, the approach is totally different. There, the fact that the stock is so weak would alert you to its weak fundamentals.

So, it is best if one is clear about what one wants to be - a trader or an investor - and plans his affairs accordingly. This will benefit in the long-run.