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I have a question regarding day trading in share market?

Trading Systems and Market Timing Models

I have a question regarding day trading in share market?

Postby vsneych » Tue Dec 25, 2012 7:07 pm

Gurus,

I have a doubt, I manage to buy some X share as intra-day. And I will sell it end of the day at the market price, will there be for sure a buyer or if there is no buyer how am I going to close my position. How will my broker play in squaring off? Or if no one buys will I have to carry forward? Can I BTST? Not sure if these questions make sense.

Thanks.
vsneych
 
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Joined: Wed Oct 03, 2012 4:42 pm

I have a question regarding day trading in share market?

Postby mort51 » Tue Dec 25, 2012 7:10 pm

Day trading in illiquid stocks is never easy and you should first start with a very small capital. There is 99% probability that if you trade with all your capital everyday, you will lose 80% of your capital within 1 year.
mort51
 
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I have a question regarding day trading in share market?

Postby osmond » Tue Dec 25, 2012 7:40 pm

to be a successful daytrader you must pick the correct stock.

That may sound flippant but it is not.

You need

1. a volatile stock...one with action...a stagnant stock price makes you no money.
2. a stock with liquidity...by that I mean lots of volume so there will always be someone to buy your stock...if I daytraded I would want a stock with an average daily volume of at least 1 million shares traded

If you don't have a buyer when you want to sell (does not have to be just at the end of the day, in the middle of the day the share price could plummet and you want out) you have to hang onto the stock until a buyer shows up willing to buy your stock....if the price falls while you wait....too bad...so sad.

You are a newbie at daytrading....do you know that 90% of newbies lose everything in the first year...

BTST makes no sense to me. and what do you mean by "Broker play in squaring off" a broker just executes your trade ... as they say "nothing personal...just business" :)
osmond
 
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I have a question regarding day trading in share market?

Postby luki14 » Tue Dec 25, 2012 7:51 pm

If there is nobody on the other side, then you can't sell. What you must do if you want to reduce your risk is to sell something highly correlated as a hedge until you can offload your position.

Either that or create a rumour about the stock you want to sell so people come in to buy it. Then you can sell to them.

That last piece of advice is illegal btw !
luki14
 
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