Day Trading Stocks & Futures

Riskyman

Well-Known Member
For trend traders - ride the trend cut the losses Generally one wont be holding positions against the circuit. But i suppose there would be cases where one is holding profits with circuit limit reached.
Not true. If there is a lower circuit right at opening bell, you cant exit anyways. So you have no choice but to hold your stock till the circuit breaks. Maybe days.

I trade small caps/pennycaps also. sometimes, stock will be locked in upper circuit for many days. They go up 30-40%. Right on top, there will be a day when the circuit will break and the stock will end at day's low. This is your first sign to get out. If you miss this exit then stock can turn and go into lower circuit for the next few days again. Ive seen some of my stocks go up like this and turn down to lose 50% of the gains. This is very very common in these kind of stocks.

Edit: If you were talking about intraday, its very different. Even then, should price go against your position very quickly and get locked in a circuit, you will get trapped.
 

Riskyman

Well-Known Member
There used to be an active thread in TJ (deleted now due to rules violation) where all participants discuss various stocks which were in uptrend. once some of those bought a stock , I forgot name, it hit continuously upper circuit and they were all happy. and then it started hitting continuous Lower circuits with no escape. most of these stocks are manipulated by operators trapping retail.
I just wrote about this. I have had many personal experience like this. Uptrend for many days and suddenly lower circuits.. Like I said in my previous post, there is one day that will be a window to exit. If you miss, you can get trapped. what we call as manipulation is mostly very little liquidity leading to circuits. Of course, the operators know how to use the situation for their benefit.
 

lemondew

Well-Known Member
I am getting different answers. Lets say i am long Mis on some stock. It hits upper circuit and locked for day. Now will my stock position get closed next day open... There is a problem next day it can gap down as well. Hence asking the same question again..


Fir tho koi problem hai hi nahi....let us say we are long a stock at Rs 80 and the stock hits limit up at 100...then MIS order will be executed at Rs 100 at EOD.....problem is only for traders trapped on the otherside...if someone is short at 80 broker wont be able to execute MIS order even at 100 because at 100 there will be few lakhs standing in line for buying and squareing off.....

ST
Not true. If there is a lower circuit right at opening bell, you cant exit anyways. So you have no choice but to hold your stock till the circuit breaks. Maybe days.

I trade small caps/pennycaps also. sometimes, stock will be locked in upper circuit for many days. They go up 30-40%. Right on top, there will be a day when the circuit will break and the stock will end at day's low. This is your first sign to get out. If you miss this exit then stock can turn and go into lower circuit for the next few days again. Ive seen some of my stocks go up like this and turn down to lose 50% of the gains. This is very very common in these kind of stocks.

Edit: If you were talking about intraday, its very different. Even then, should price go against your position very quickly and get locked in a circuit, you will get trapped.
 
I am getting different answers. Lets say i am long Mis on some stock. It hits upper circuit and locked for day. Now will my stock position get closed next day open... There is a problem next day it can gap down as well. Hence asking the same question again..
Dont confuse yourself...if you are long and the stock hits upper circuit, your broker will always be able to execute MIS sale order the same day...so your position will be squared the same day...for selling in a upper curcuit is no problem.....problem is if you are short and the stock is limit up, you wont be able to square up in MIS because at limit up, all buyers are standing on buy side and no seller on sell side...
 

Riskyman

Well-Known Member
I am getting different answers. Lets say i am long Mis on some stock. It hits upper circuit and locked for day. Now will my stock position get closed next day open... There is a problem next day it can gap down as well. Hence asking the same question again..
My friend.. If you are long and your stock is locked in upper circuit means that there are no more sellers i.e only buyers left. Since you are already long i.e bought the stock, your stock will be squared off at EOD i.e a sell order will be placed and your position closed. Remember there are no sellers in a upper circuit so buyers will thank you for selling out :)

The problem will be if you are short and price gets locked in upper circuit.
Edit: This is exactly why the exchange doesnt allow margin trades in many stocks. Margin trades where you can short sell are limited to handful of stock where there is plenty of liquidity.
Should the exchange allow short selling in a stock and if it gets locked in upper circuit, the exchange will certainly open the circuit in order to close all intraday trades. This is why many stocks where there are circuit filters of 5% are not allowed for Margin trading.
 
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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.
The Hunt Brothers were buying Silver, all of it available in the world, at that time. Taking delivery by the Plane loads. Cargo Planes.
 

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