Upper Circuit Value
The lure of making money has attracted the small investors in investing their funds in the Indian stock market. The small investors are watching the index of any share or the movement of any share. Many times it moves in a particular direction more than the specified percentage, and then it is known as circuit breaker. The downward trend of the share is known as lower circuit and the upward trend is known as upper circuit.
The Indian stock market is having an upper circuit movement so an increasing number of people are investing in the Indian stock market. The small time investors are investing in the market, but are easily affected by the loss, if any they suffered from the shares. The big investors are not bothered by small losses, they watch the shares and when the shares or stocks fall to certain level, the position is closed. They expect small amount of losses and do not take stress about it. In the same way when the shares price moves up, then these traders evaluate the movement of the share price and close the share while still high. They plan the trading and work in a planned manner, so they get success in the trading market.
The small investor should only invest that much amount, which even if lost won’t bother him. If he/she can sustain that amount of loss, then he/she should not invest. If the loss real effects you, then it is no use investing. Unless and until you are detached you cannot invest wisely
Circuit breakers are also known as Price bands. In casual terms you can call it the band within which the stock can move freely. If the price of the share or stock goes beyond the price band, it is known as breaking the circuit. The lower circuit breaks the lower price level and the upper circuit levels the peer price band.
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Categories: Stock Market
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