How To Earn Daily 5% Profit From Upper Circuit And Lower Circuit Stocks?
Hello friends, today we will discuss How To Earn a Daily 5% Profit From Upper Circuit And Lower Circuit Stocks?
Different people have different ways of working in the stock market. But no method ever works 100%. You need to change the way you trade over time.
Whether the market is the upward or downward or FLAT market. You have to follow different methods according to the market situation.
However, today we will discuss a method where there is no obligation to move the stock with the fluctuations of the market.
Basic Information of Penny Stocks
You’ve probably heard of Small-Cap or Penny Stock shares.
And since the shares are small caps, the operator manipulates them the most. Manipulation creates Pump & Dump situations.
Pump & Dump Technical means when a share price suddenly rises several times faster and after a few days the share price starts declining again and reaches the previous price.
When an operator starts to increase the share price suddenly, that method is called Pump.
Again, when the share price falls sharply, it is called a dump.
However, in the next article, we will discuss the Dump & Pump method in detail.
Point No 2 – BSE & NSE Stock
In particular, there are many stocks in the BSE Stock that fluctuate up to 3-5% every day. It has no special dealings with Nifty and Sensex.
The specialty of these stocks is that when these stocks start to rise, they continue to rise continuously for 7 days, 15 days, 30 days, or more.
And the number of shares growing every day is 3-5 percent.
If you can only hold shares for 10 days, you can earn 10 * 5 = 50% profit in 10 days.
Note that the 5% movement in the stock is mostly due to the upper circuit Stocks.
You cannot buy shares if the upper circuit touches that particular share as soon as the stock market opens. So you have to be aware when that stock is moving normally.
Lower Circuit Stocks
Again, there are some stocks whose share price has been falling continuously for 7 days to 30 days or more. Every day three to five percent of the price continues to fall.
In fact, there seems to be a continuous lower circuit between them.
Click on the link below to know more about Upper Circuit and Lower Circuit.
How Can You Use this Upper Circuit Or Lower Circuit Stocks
we can use this Upper Circuit or Lower Circuit stocks to get 5 percent profit per day.
In fact, when the price of BSE shares starts falling, most of the shares fall by 70-80%.
From that moment you can start investing.
First of all, you have to see how much the share has fallen from the maximum price to where it has reached, I have already said that the share price should be reduced by 80 percent.
Hekin Ashi Candle Use
The second is that you need to use Hekin Ashi candles.
As the share price for Hekin Ashi Candle starts to rise for you, then continuous green Candle starts to form.
Again, when the red candle is formed and the share price continues to fall, a continuous red candle is formed.
This Hekhin Ashi candle you need to use.
Using this candle, you will see that since the share price has started falling, but since then, one red candle has been made every day.
You will have to wait until the first green candle is made after reading 70 to 80 percent of the share price, the day you have to invest the money.
And according to the rules of Hekin Ashi candle, you can buy share from the first or second green candle. You can make three to five percent profit every day.
If you can take 5% profit for 10 consecutive days, you can get 50% profit very easily.
Click on the link below to know more about Hekin Ashi.
Support & Resistance
Another important point is that before buying shares, you need to see if the shares have come close to any major support. Then there is the golden opportunity to buy the specific Share.
The question now is how to set the target after buying or selling the shares.
A very simple rule is that if you are buying shares with the first or second green candle, you have to sell only when the first red candle is made.
You do not need to follow any other procedure.
Stop loss Set
Now the question is whether you will use stop loss or not.
Do not buy shares in such stocks without stop loss.
You must use Stop Loss.
There are many times when the first green candle is made after a continuous share price fall. As a rule, you buy the stock, but after two or three green candle towers the share price starts to fall.
In that case, don’t wait any longer, as soon as you see the red candle, you have to sell it out, no matter how much profit or loss you have.
The maximum you will lose is 5%, don’t go for more than that.
I request you to observe stop loss very seriously.
Now the question is how many shares should be bought.
In fact, it depends entirely on your investment.
Suppose you want to invest Rs. 50,000 / – in such shares, then you have to choose at least three to four different company shares. And you have to invest by dividing each share equally.
How to Find out Upper Circuit & Lower Circuit Stocks Easily
There are many types of technical websites and screeners available in the market, you can use them. This screener helps you find the upper circuit and lower circuit stock in one second.
Below I have some shared screener details though.
Continuous Upper / Lower Circuit Stock List
What else do you need to keep in mind before buying such shares?
- Try to invest in stocks that price has at least Rs 5 above.
- Instead of investing in BSE stock, you invest in NSE stock.
- The third is that you need to note the volume that the volume of the shares is at least above 50 thousand, you can invest in them in this case your risk is much less.
- Before buying shares, you do not see if the shares are moving properly every day.
- The most important thing is the method that I have discussed with you today. Do those back tests first and observe for two to three months.
If you think this method is working successfully then surely you can work.
I hope you find my article “Earn Daily 5% Profit from Upper Circuit & Lower Circuit Stocks” If I have made a mistake in this article or you have any questions please feel free to comment in the comment box and I will try to answer your question as soon as possible.
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(Intraday Trading Course) can be admitted.
You can learn all the work of the stock market for only Rs. 799 / – and you can earn good money every month from the stock market.
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