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Kapil-Mittal
Apr 19, 2022 10:35 AM

How to avoid sudden market selling? Education

Nifty FMCG IndexNSE

Description

Using #BTST (Buy today, Sell tomorrow) trades, you can avoid sudden market selling like today.

How?

- When you take BTST trades, you usually ride the momentum and are only in the market for a few minutes.

- For example, I typically buy stocks at 3:25 p.m. and sell them the following morning at 9:15 a.m., so technically I am only in the markets for 5-10 minutes every day, reducing my exposure and, consequently, the risk I face.

- No one can predict the next market downturn, but you can work to reduce your exposure to the risk of a downturn.

- We can adjust the amount of capital we put into BTST trades because we are taking new positions on a daily basis.

Because we take new positions every day with BTST trades, we can adjust the amount of capital we put into the markets based on the current market conditions.

- In comparison to BTST trades, swing trades can turn any profitable trade that you have been holding for many days upside down in a matter of minutes, and you must actively track them every day.

- Because we have specified targets with BTST, we can exit them early and avoid this risk as well.
Comments
architk
Position sizing matters the most in btst and stbt trade style because of overnight gaps. nice one
InvestPro_India
Great post
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