Fluorochem for me is more of a fundamental story and that’s how I view it. The results till now have vindicated that view.
However if it breaks down and starts closing below crucial levels for a few trading sessions, I would consider reducing my position and adding back on signs of strength. So I would like to view for next few trading sessions how the stock behaves and how the support zone holds out. Then I would take a call.
Its precisely because of situations like the current situations that I prefer to follow my own methods of multiple inputs while trying to use stop losses in positions, rather than use absolute numbers or mechanical formulae.
If I had followed daily charts closely, my exits would have been on breach of the head and shoulders breakdown, but that’s something I missed. But then as an investor I do not have to act in haste and do anything rash. Idea is to take things as they come and first see how things pan out and then decide a course of action.
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