Catch the fast running stocks (M/S cap)

Mid cap/Small-cap stocks

When the market opens at 9:15 AM

I see some times, Some stocks are open up 4%, 5%, 6% ....... end of the day those are ends with 10%, 15% and 18% like that.

I see some times, Some stocks are open 2% and 3% down but finally end of the day those will be end up with 8%,10% ... 15%.

I observed most of the stocks news based only and some of the stocks are do not know why they are up or down

This happens to not only for upside and downside also.

I tempted many times by seeing that why do not I buy, cause in a single day can earn more than 5% ... where i can earn this much amount.

It is very difficult to catch up those stocks, cause monitor very closely all the stocks.

Note: I read it from Shabbir's book do not run up behind the stocks with out analyzing it.

Q: Is there any one succeed to catch like those stocks, if so any strategy is there?

Q: Is this the good idea to catch up the running stocks?

Thanks,
Siva.

 

Hi! Siva
U can also buy those stock but should be very care full about do and don'ts

1) Don't but any of that stock @ opening wait till it get settled and if break out or break down the high or low of the peak then go for long or short.
2) Do follow the strict stop loss, don't hope for tomorrow cause there is no tomorrow for these types of spike so book profit or loss in intra day only. If u think r looking so positive then also do it in intra day only and plan to buy or short tomorrow.
3) Don't take over exposer.
4) Don't take position only because u got margin.
5) Don't use ur gut feeling that it will recover after hitting stop loss, just exit no matter how big or small ur loss is.
6) Don't take any position if u can't give appropriate time to market.

Yes sometimes I took these types of opportunities if time allows and also got benefited so many times.