How to trade in BTST and STBT stocks?

-
BTST (Buy Today Sell Tomorrow) and STBT (Sell Today Buy Tomorrow) are the terms used in the share market. Traders are always on a lookout for opportunities to make more money in the market. The decision to sale/purchase the stock is driven by its fundamental and technical strength. The confidence of the trader also plays a crucial role in it.

What is BTST?
It is a short-term opportunity wherein the trader purchases share today in cash or F&O segment and sell it the next day. The trader does not hold long positions. This BTST position is taken by a trader in those stocks which are expected to trade at a higher price tomorrow.
What is STBT?
It is also a short-term opportunity wherein the trader sells the stock today in an F&O segment and purchases back the next day. This is not possible in the equity segment of the stock market. This position is taken by the trader in those stocks which are expected to sell at a lower price tomorrow.
Difference between BTST/STBT and intraday trading
BTST/STBT is different from intraday trading. In BTST/STBT stocks are purchased/sold on one day and sold/purchased another day. In intraday stocks are purchased and sold on the same day.
How to trade in BTST and STBT?
The first and the foremost on sees is the break out in the direction either way during marketing hours. Say a share of a company is trading around 1000 during the day. In a day at around 3:00 pm, it rises suddenly to around 1020 which suggest a breakout in the price moving pattern the trader purchases share today and sell tomorrow at a higher price.
On the reverse, if the stock breakdown is in the downward direction that is from 1000 to 980 at 3:00 pm STBT position is taken by the trader in the F&O segment.
Risk traders take in BTST/STBT position
Everyone knows the stock market is a risky business and traders must be careful while taking BTST/STBT position. If the trader makes a wrong interpretation of the price movement the trader has to bear the loss. The market movements are highly unpredictable; it can move against expectation and will leave no option to book loss.
Trading tips and strategies
Strategies for BTST and STBT are highly attractive on returns but one must be careful while trading. It is advisable to have a stop loss in place. One must not trade in BTST and STBT when the stock market is very volatile or some major events are expected to happen overnight. Like RBI policy declaration, company results, change in government policy or rules, election results, etc. Trading is an art and requires skill and knowledge which is acquired with time. It is advised to invest your surplus money in the stock market so that in case anything goes wrong it will not affect your financial standing.
It is better to take tips from an experienced person or companies like Alliance Research to make good money and create wealth.

Comments

Post a Comment

Popular posts from this blog

Technical picks- Top 15 stocks that experts are betting on for 14-70% returns in FY20

-
Technical picks: 15 stocks that experts are betting on for 14-70% returns in FY20, If the momentum continues, the index is all set to climb Mount 12K and hit a target around 12,400-12,700 in the next 12 months, according to experts. Nifty50 has rallied about 13 percent so far in FY19 and if experts are to be believed, it is on track to hit fresh record highs in FY20. The optimism in market lately has been on the back of hopes of a stable government post elections, strong buying by foreign investors, rate cut by Reserve Bank of India and stability in rupee-dollar pair. Historically, we have seen a decent rally in the market before and after the general elections. This year also, Nifty has formed a new base in the 10,600 – 11,000 zone and has been witnessing pre-election rally in the last few weeks. If the momentum in market continues, Nifty could touch 12,000 and hit a target around 12,400-12,700 in the next 12 months, according to experts. “If we go by the principle of ‘
Read more

What is a Trading Plan?

-
Image
How many times have you had a position to go against you? You planned the trade correctly, but soon after you bought your initial position, you discovered that the price you paid was higher than what it was now worth. The first trade was a loser compared to the market price. What could you do with this losing trade? You could sell it out and look to buy something else, or you could buy a few more shares or contracts at the new lower price. Which is the better solution to your dilemma? In most cases, Most people, however, would buy more at lower prices. They would average their losses on the way down if they are buying, or average their losses on the way up if they are shorting. There's an old saying that if it looked good at a higher price, it looks a lot better at a bargain price. Traders determine whether they will average or not by looking at what they are trading: stocks,  options , or futures. Let's look at each of these trading vehicles in terms of averaging
Read more
-
Image
Cash market is a marketplace where the immediate settlement of commodities takes place in this market between the purchaser and the seller. This is also known as spot market cash market transactions take place over the counter or in a regulated exchange in contrast transactions take place exclusively on exchange. The price of the cash market is usually less than the futures market this market has two day delivery period due to the time duration to move cash from one place to another. In this market most speculative retail trading is done as spot transactions are on an online platform in this market the moral context speculation is considered negatively. Then there is also a part of this market known as the energy spot market where surplus energy producers instantly spot purchasers or buyers for energy and negotiate prices within milliseconds and deliver the energy. In this market, securities are traded in a possibly changing current market place. Cash market is differen
Read more