Day Trading Stocks & Futures

[Smart_trade]

Lower circuit doesnt mean no trades executed. Even when a stock is locked in lower circuit, trades can happen i.e buyers can buy at the lowest offer price. Circuit doesnt mean trading halted. It just means price cannot trade above/below a certain level.

If the market is locked limit down at lower circuit, bulls wanting to sell their positions even at circuit level also cannot sell because there will be few lakh shares in the line for selling at the lower circuit limit and buyers will either disappear or come in small quantities...in this case only option is put the order to sell at lower circuit and hope that the lower circuit will be lifted atleast for sometime ....same for higher circuit...

ST

 

[Smart_trade]

We have not witnessed such high volatility....but read Market Wizards and there are instances of commodities markets staying limit up/down for not 1 day but 6 days consecutively......there is one instance where one trader narrated how market went limit down to limit up and again limit down in a matter of few minutes and daytraders got killed,......in such cases position sizing and MM only will save the traders....

Anything can happen in the market.....

ST

 

[doss186]

The trading ragnes got exhausted for most of futures, do we still have some trading opportunities tomorrow?

 

[Riskyman]

If the market is locked limit down at lower circuit, bulls wanting to sell their positions even at circuit level also cannot sell because there will be few lakh shares in the line for selling at the lower circuit limit and buyers will either disappear or come in small quantities...in this case only option is put the order to sell at lower circuit and hope that the lower circuit will be lifted atleast for sometime ....same for higher circuit...
ST

The discussion pertained only to whether or not trades can be executed and was not related to how much qty buyers/sellers will buy/sell if locked in a circuit.

 

[Smart_trade]

The discussion pertained only to whether or not trades can be executed and was not related to how much qty buyers/sellers will buy/sell if locked in a circuit.

I thought the discussions pertained to whether the traders on the opposite site of the market can have escape route even at limit price level...in most cases they wont have...traders are interested to know whether they can get out from their losing positions....

ST

 

[Riskyman]

I thought the discussions pertained to whether the traders on the opposite site of the market can have escape route even at limit price level...in most cases they wont have...

ST

Circuit mein phas gaya tho gol gol ghoomna padega No escape... specially in small stocks that can stay in circuits for many days as you know. Bahut ghoomke aaye hoon lower circuits mein

 

[travi]

We have not witnessed such high volatility....but read Market Wizards and there are instances of commodities markets staying limit up/down for not 1 day but 6 days consecutively......there is one instance where one trader narrated how market went limit down to limit up and again limit down in a matter of few minutes and daytraders got killed,......in such cases position sizing and MM only will save the traders....

Anything can happen in the market.....

ST

Mark Douglas also explains very well how he lost out when he was long and broker played him ( got him to spread on the other exch with opp position ). after booking losses, his trade in silver was limit up for around 30 days. this was in 1980. He accredits this trade which really opened his eyes.

 

[Smart_trade]

Mark Douglas also explains very well how he lost out when he was long and broker played him ( got him to spread on the other exch with opp position ). after booking losses, his trade in silver was limit up for around 30 days. this was in 1980. He accredits this trade which really opened his eyes.

These are really scary stories where good traders also lost 30-35 % of their capital but they still survived due to their MM and position sizing......

ST

 

[lemondew]

How about profitable mis positions will that be squared off before circuit limits

You cannot execute any order...even MIS square off is not available...so your trade is carried to the next day and you will have to enter your sell order afresh....In case of trading halt,all pending orders are cancelled...MIS wont work....but your broker will not wait till the circuit...he will square off all MIS orders before the circuit...

 

[Riskyman]

Mark Douglas also explains very well how he lost out when he was long and broker played him ( got him to spread on the other exch with opp position ). after booking losses, his trade in silver was limit up for around 30 days. this was in 1980. He accredits this trade which really opened his eyes.

Back in 2004-2005 or so, Some real estate stocks were really hot. I remember punching in my buy orders in Unitech without getting a single share for many many days as open price would be up at upper circuit. If I remember well, the stock was in a continuous circuit for more than a month. Somehow, after many days of trying, I manged to buy a few shares right at the top. Thereafter, continuous lower circuits. Rest is history