no one going to earn even single rupee day trading

hi Abhi,
I have a small doubt.i'm sorry ,it's not related to the discussion going on...
What is the reason behind the gap up and gap down opening of scrips? is there any technical or fundamental reasons behind that?

Thanks
 

Raghavacc

Well-Known Member
hi Abhi,
I have a small doubt.i'm sorry ,it's not related to the discussion going on...
What is the reason behind the gap up and gap down opening of scrips? is there any technical or fundamental reasons behind that?

Thanks
Basically 2 reasons:

1. The news ( good or bad ) that comes out in between close of yesterday's session and today's open about a particular company influence the price of the script.Good news makes it to gap up and vice versa.

2. Brokers & crookers!!:Market has few participants who are always trying to trap novices. Exa: these players gap up the price with huge volume creating impression that its bullish and thereby making all novices to go long and then these sharks place huge sell orders and make the price to drop thereby eating all small fishes.

Am I right Abhi?

Regards
Raghav
 

rajputz

Well-Known Member
hi Abhi,
I have a small doubt.i'm sorry ,it's not related to the discussion going on...
What is the reason behind the gap up and gap down opening of scrips? is there any technical or fundamental reasons behind that?

Thanks
The gapping up is done rapidly usually very early in the day's trading and will certainly have emotional impact. The action is usually designed to try to suck you into a potentially weak market and into a poor trade, catch stop losses, or panic traders in general.

Beware against confusing these two types of action. Weak gaps up are always into regions of new highs, when news is good and the bull market looks as though it will last forever. The same action is also seen in a stronger type of market, but in this second case you will have an old trading area to the left at a similar price level where there are always locked-in traders who have seen substantial paper losses but have refused to be shaken-out by any falls. These old locked in traders want only one thing, to get out of the market at a similar price of the one they first started with.

Professional traders that are still bullish know this. To encourage these old locked-in traders not to sell professional traders will mark or gap the market up and through these areas as quickly as possible.

Wide spreads up are designed to lock you out of themarket rather than trying to suck you in. This will tend to put you off buying, as it goes against human nature to buy something today that you could have bought cheaper yesterday, or even a few hours earlier. This also panic's those traders that shorted the market on the last lows encourage on by 'bad news' which always seems to appear on or near the lows. These traders now have to cover their short position [buying] adding to the demand .
 

ak9

New Member
Dear abhi,
Can u pls. suggest me any good broker with whom to work as sub-broker.
My consider is - (1). Best infrastructure / speed (2). Live quotes / charts / comparative tables (3). Market reputation.

your's -
abhishek
 

Raghavacc

Well-Known Member
Tomorrow i think will be a down day for IT Industries and an upday for Banking Sector....lets c
All down!!!:lol:

Regards
Raghav
 

abhiwhy

Well-Known Member
hi Abhi,
I have a small doubt.i'm sorry ,it's not related to the discussion going on...
What is the reason behind the gap up and gap down opening of scrips? is there any technical or fundamental reasons behind that?

Thanks
demand and supply :)

market opens at 9 and closes at 3.30 but there is more trading hrs there , called post market and pre market , and there are several pre and post market orders responsible for that .

post market order are orders which are traded after market settlement and pre market orders are put before market opening . suppose if nifty closes today at 5200 and there is a major good market news after market closer then next day every one gets idea about market's bullishness so several orders are placed before market opening and it influences the demand and supply i.e., demand > supply and as a result market opens with a gapup. and vice-versa .
 

abhiwhy

Well-Known Member
hi every-one , happy new year to all of u and wish u a very-very prosperous coming year .
i was outside country and am presently working on an global m&a deal therefore , finding myself unable to give enough time for markets and traderji as well , hope to join u people soon and back to market once again as i deal goes in final stages .

regards
abhi
 

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