I am new to stock marketing and trading, It’s been 3 months since I started trading, I trade in equity and equity future.I am jobless and trading is the only income for me since I started trading, facing daily losses,
I use BO, CO and MIS orders and never taken delivery to next day.
I see people take advantage of BTST and STBT? very confused as never found an edge till now.
Are BTST and STBT profitable? Do I have to trade through CNC for BTST/STBT?
Please help me in this.
Let’s say you bought shares of ABC Limited in CNC at Rs.100 (50 quantity) on 10th Nov
Now you see that after buying the price has increased to Rs.150
If you sell those shares now in CNC(10th nov), it will be considered as intraday. You’ll charged brokerage as per intraday and your transaction will be completed.
If you sell the shares on the next day(11th Nov), it will be considered as BTST (Buy today, sell tomorrow)
You won’t be charged any brokerage for this.
If you sell the shares on T+2 day(12th Nov), it will still be considered as BTST because the shares gets credited to your demat A/c at the end of T+2 day.
NOW there’s a slight risk associated with BTST i.e. Auction penalty.
Let’s consider our case.
You bought on 10th Nov ABC limited 50 quantity and sold 50 on the next day i.e. 11th Nov
What if the person who sold you shares on 10th Nov fails to deliver it to you on T+2 day?
You won’t get the shares on 12th Nov (T+2 day)
and you’ve sold them on 11th Nov.
Let’s say Mr. X sold the shares to you on 10th and Mr. Y bought them from you on 11th.
Here, Mr. Y won’t get delivery.
So you and Mr. X are the defaulters and will face auction penalty.
For more information visit here https://craytheon.com/articles/day_trading_nse_bse_short_selling_auction_process.php
My recommendation is it’s pretty safe to do BTST in highly liquid stocks.(done in the past)
The chances of auction penalty are very rare.
So, please always see if the scrip has high liquidity before doing BTST.
I hope my solution helps you and clear all doubts regarding BTST.
Also you said you’re facing daily losses.
I think you should first learn all the basics of stock market.
It takes time to learn. But it’s worth it.
I would highly suggest you to look for earnings through short term(5-60days) and long term.
In the meantime, do intra-day (small trades) using the knowledge you learned.
Like just buy 1-10 shares and see if your calculation is correct or not.
Pay attention to stop loss, target price etc.
This way you limit your losses and your portfolio is growing day by day earning you lots of money. ( Obviously only if you’ve chosen good stocks)
Please do not waste all money in intra-day. Instead look for income through investments.
It takes time and experience to become profitable in trading. You are very new to trading, and you have started with intraday trading which I think is the hardest. Since it’s your only income, you will be under mental pressure to churn profits in order to make an income, which will make things even more difficult. Like any other profession, trading also needs considerable time to build the skill. And yes, you need an edge in the market to become profitable. So do spend some time in finding a good strategy that you are comfortable trading. A good strategy will have a precise Entry, Target and Stop Loss level. Proper Risk-Reward should be maintained. Also ensure that you follow the strategy in a disciplined manner(Psychologically, this is also a big challenge for traders but good traders overcome it). The urge to book profit before the Target gets reached becomes very strong (especially if you had a few losing trades) and the tendency to allow a trade to lose beyond the Stop Loss level hoping that price will reverse soon is also very common among new traders. These tendencies must be curbed ruthlessly.
On the one hand you said that you are jobless and trading is only income.
On the other hand you said you are facing daily losses!!!
Aren’t both statements contradictory??
If you are losing then where is INCOME?
@priyaalami1 Before you start trading what you have, please keep aside 3 months of your monthly expenses to an account which is very far from you (and promise yourself not to touch).
Meanwhile look for something as a source of income, You can read and write English while knowing some mathematics, a back office job at BPO or KPO won’t hurt. Do not take it otherwise but it is just a suggestion. That way you will have less pressure to learn or excel in trading. Over a period of time, once you accumulate money, you can earn through your investments than trades.
Since you are new to stock market and also jobless/ depend on Trading,
First thing you need to do is to " Preserve " your capital whatever you have , and try to learn TA, just ignore news & news based trade.
Time being Don"t trade in FNO
If you want to do day trading, use CNC, even if it is requires more money , at least you can avoid over trading & losses to a certain extent
Try to earn some passive income , be it by Part time job or like.
Remember that Stock market is like a big “Sea” it takes any amount of money but can dispense little amount of money.
Pre-market is too much complicated and does not reflect the true direction of the stock. So avoid trading for at least 1 hour after market opens.
How you benefit from BTST?
The simple benefit is you don’t need to wait for T+2 days to sell your shares.
E.g You buy Axis Bank @ 540 today
You can sell out whenever you want(need not wait for T+2 days+
You sell today/tomorrow or anytime.
When you buy any shares, the shares are credited to your demat account on T+2 days
E.g If you bought AxisBank today, shares will be credited to your demat account at night on 23rd Nov,17
If you sell your shares anytime before that, it is considered BTST.
I hope it cleared your doubts.
BTST stands for Buy Today Sell Tomorrow and STBT stands for Sell Today Buy Tomorrow
In BTST, trader buys a security and takes a long position just before the close of the trading day and squares off his position (by selling the security) next trading day before market close.
In STBT, trader sells a security and takes a short position just before the close of the trading day and squares off his position (by buying the security) next trading day before market close.
The above trades are carried out in NSE Futures segment.
You can also do BTST in CNC. However, you need to pay total amount of shares.(take delivery)
CNC mama cash n carry.
Limit price(buy): Maximum price you are willing to buy at
Limit price(sell): Minimum price you want to sell at
@mac76 thanks for yor reply.As of now i am trading in cash and equity future.
I never traded in F&O(option) and index trade . Should i start trading in this, any chances are these taht these r having advantage over trading in cash and equity future? TIA
@mac76 how to put limit exit for normal(position) trades.
if we do BO then, in order book we get trigger and exit both …but in normal its not coming(cash and future) then how to put exit in limil…or we have to exit in market price?