Showing posts with label buy a stock that hits upper circuit. Show all posts
Showing posts with label buy a stock that hits upper circuit. Show all posts

Friday, January 18, 2008

(advanced) how to buy a stock that opens in upper circuit

if you really want to buy a stock that's hitting upper circuit regularly, try this:

(caution: these stocks go up like rocket and come down likewise, you can lose your pants pretty easily)

1. login to your online trading account at 9:50 am
2. bse opens at 9:55 am, 5 mins before nse
3. as soon as the market opens, check whats the first price. it will be 5% higher (or the circuit level for the stock) than yesterday's close and it will show "no sellers"
4. put an order at this price for the number of shares you want to purchase
5. do not cancel your order and leave it open for entire day

the trick is to be as early as possible in the queue of buyers. during the course of day, trades happen at the circuit price even if the system shows no sellers available. keep checking the volume, you will see it increasing during the course of day.

another tip, look at the average volume for the last few days. at the time of your putting the order, if the number of pending buy order is significantly lower than the average of last 5 days, you have a good chance.

put in your trade as early as possible, before 9:57 am on bse to be precise :)

speed of execution is the key ! do return and leave a comment if you managed to buy the stock. all the best