The top gainers and losers in a market will always determine how your investments should be. If you are a newbie in the stock market, you might think top losers are not worth consideration, and you can only maximise your profit with the top gainers.
However, that is not how the share markets function. Instead, if you invest carefully and cleverly, you can profit from the top gainers and losers NSE. But, without prior understanding, the concepts might seem complex.
If you want to learn how to utilise the top gainers and losers to benefit you, look through this article. Here, we will discuss the concepts and what it means to investors like you. Scroll down for more information.
What Are Top Gainers And Losers?
While you watch the stock prices, do you notice a green and red arrow after each stock? These indicate the top gainers and losers in the National Stock Exchange. When the share price of a stock increases in a single trading day, it is categorised as a top gainer. However, the share’s closing price must be higher than the opening price.
On the other hand, if a stock exhibits the highest fall in price over a specific time frame, it is termed as top loser. If the stock exchange indices spike up, the immediate prediction is that there will be more gainers than losers and vice versa.
But why is there disparity? There can be multiple reasons for the fluctuation of a price. For instance, international politics, budget announcements, wars, and natural calamities like pandemics, company performance, etc. Hence, for all those new to the industry, follow up with daily news updates.
What Does Top Gainers And Losers Mean For Investors?
These gainers and losers lists, updated every minute, provide valuable insights into the share’s performance. This information is imperative for investors to plan their move. Moreover, the price indices provide knowledge about the market trends, potential opportunities, and market flow.
Moreover, the price percentages and relevant external factors indicate whether that particular industry rises or falls. It also suggests whether it is profitable to wait for recovery before purchasing or whether it should be purchased immediately.
Additionally, it will also mean that the company is financially stable or volatile, and whether you can plan a long-term investment or a temporary one is more favourable.
How Should Investors Plan Their Investments?
If you desire to be a top player in the market, you must learn to use both to your abilities. Though the price fluctuation of a day is recorded when determining the gainers and losers, investors must not depend on the single-day valuation to conclude. Instead, the stock prices must be monitored over at least three to four days to better comprehend the trend before planning a move.
The rising price of shares proves the company’s favourable performance in the market; hence, for some investors, it is a potential stock to purchase and sell at a higher price. However, if the trend is a temporary rise, investors wait until the price drops considerably to purchase and sell it off at an increased price.
How many of you knew that top losers can also be your source of profit? Stocks losing their valuation speaks of their lack of performance to the investors. Hence, for some investors, it might mean a loss; for some, it is a chance to maximise their profits.
Use the reverse technique if you have a stock whose price decreases and the trend proves its continuation. Sell the stock first and purchase it at a lower price, thus gaining your profit. This tactic is referred to as ‘going short.’
Wrapping Up
The updated list of top gainers and losers has a significant meaning for investors. These help them to plan their strategies to maximise profit and minimise loss. Additionally, it gives them an idea about the market condition, which is imperative for drawing data-driven decisions. You can always download the Research 360 MO stock screener application for recent updates.
