Hi everyone. I am a beginner who is interested in markets and trading. I had a doubt. Didn’t get any conclusive answers on the net. So today i meant to trade reliance intraday because of the latest news of another investment in jio. 2 things happened which i want to clear out.
1- during the pre market hours, i saw ask prices around 1300 and bid around 1600. What was that all about ?! this was in 5 depth. When i viewed 20 depth there was no data. Everything was 0. And if this was not any glitch, can i use this to my advantage ?
2- there was the initial jump of around 3% from previous day close to today’s open. I really wanted to make profit on that. Is there any way to do that? Maybe buy in the pre market hours or anything at the previous close or close to that ?
Same thing with icici securities. Jump was around 13%.
Using zerodha kite.
Any advice and answers on the questions would go a long way in building my knowledge base
premarket is the market trying to find a conducive opening price. Google it, you ll know more.
Yes, you can sense the market sentiment in premarket.
Yes, you can sell or buy in the premarket, and you ll get the opening price executed around 9:08:00, when premarket ends. At times, your premarket order will fail to execute, and stay as limit order on the opening price when market opens at 9:15:00.
Will it always work? No. Everything works in market, but not every time.
Yes, it’s is enticing to think if you somehow entered just at the open, you ll catch all the big moves. You ll be the early bird.
Let’s push aside this seducing dream for a while. Trading the open requires mastery, prices can spike up easily, giving you big fat greens. But there are also big fat reds.
Yeah, but who knows you ll become a master in tape reading and become the next master trader.
But mastery over anything, comes with great deal of …
Always remember big names like Ril,infy,hdfc bank,dr Reddy etc are also listed in usa/europe exchange they can have gap up or down,our own nifty is listed on sgx exchange which is open till late after our exchange closes and also open before our exchange opens,initial 1 hour is for fii and dii to buy and sell in big qty so always stay away
