Many Times During our trading hours, we used wait for the right moment to enter into the market simply by Buying some stocks / Derivative / Commodities... we simply wait,wait to gain a better price or expect a some more lower price , so that we can have some mileage and a kick back momentum to exit...In those times the market really test all our patiance.. it won't come down, instead it certainly jumps up within no time for no reasons...By the time now, All our patiance will be gone and we really don't know what to do at this point....??
We make a hurry burry decision to buy the script at the current level- high/Market price...just by Thinking/Assuming it will go further high's ,so that we can make some profit/ money out of it. The price at what level we bought may be the highest price of that day.in this kind of situation, 'what happens many times are , the market totally change it direction' ( U -TURN) from up to down (FALLING KNIFE) and even some time break the earlier low points... un to the lowest.
What is all this ?
This is what called the ' DEAD CAT BOUNCE '.
I Have found the above video in youtube that simply and very effectively elaborated all this fact in Neat format. A single picture is fair enough to tell thousand news/stories.. is proved once again.
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