Contract Winner really?(My first trade)

My first trade

Contract winners are the company that make deals with bigger companies.

When a company makes a contract deal it is always a good news and market reacts abruptly.

Such news spread like wildfire and volatility of that stock increases

But sometimes this news turns out to be fake

This is what happened with Idea Ltd today

There was a rumour that Google is going to buy a stake of idea and the market jumped above 35% from starting price of Rs 5.8 and going up to Rs 7.8 at one point and then 

Vodafone Idea today clarified that "currently there is no proposal as reported by the media that is being considered at the board", with reference to reports by tech titan

Now market is back to to Rs 6.5 

So when I heard the news I was too excited and bought 118 shares around  Rs 900 at a spot price of Rs 7.6 per share although all my technical indicators forbade me!

But the crazy thing about contract winners are if they pick momentum it is definite that it would hit upper circuit and higher highs and by the time news spreads ,the stock would be soaring!

But false news is always an issue 

By the time the news has been confirmed the stock would be untouchable  for a quick arbitrage.

For now I am at a loss of Rs 124

If the money was huge then I would have picked a stop loss of  2% of initial money that would be around spot price of Rs 7.4 and cut losses quickly 

The lesson here would be

1)Flexibility - Although contract winners give a quick buck but it is also important to verify and keep tracking the news for further anouncement

2)plan the trade - It is better to set a target and stop loss before the trade

3)Market depth- Idea ltd was too liquid, Market depth was very deep and I could have just waited for market to stabilize than to react!

 If it was not for greed I would never pick idea Ltd coz of

1)high debt -Unless there is a merger there is no hope for this company

2) extremely low PE ratio - extremes are always bad

3)All time low- this stock is just supported by shareholders to trade and not for its intrinsic value