Taking delivery to cut loss in day trading.

#1
Experienced traders please help.

In day trading, after buying a script if its price falls too much, then instead of booking loss or exiting at stop loss level, is it a workable idea to take delivery.It can be sold next day or after few days at all inclusive cost price.

In this strategy one should not use leverage, also one may be left with no fund to trade in subsequent days. This is a bearable drawback as, if you book loss to make fund available for subsequent trading, it will take time to make up the loss through profits.
 

biyasc

Well-Known Member
#3
Experienced traders please help.

In day trading, after buying a script if its price falls too much, then instead of booking loss or exiting at stop loss level, is it a workable idea to take delivery.It can be sold next day or after few days at all inclusive cost price.

In this strategy one should not use leverage, also one may be left with no fund to trade in subsequent days. This is a bearable drawback as, if you book loss to make fund available for subsequent trading, it will take time to make up the loss through profits.
the answer is "NO".
 

AW10

Well-Known Member
#6
I agree with Biyasc, Capricorn that one shd never conver a loosing daytrade to positional trade. The loss is just going to get bigger.. and in many cases, it will get so big that we will blow the account.
Specially, if it is in Futures.

As a trader, we need to learn to cut our losses short.. not fall in love with loosing trade and hold it to see it hurting us more.

Happy Trading
 
#7
Thanks.

Thanks for your opinions.

I have tested, a falling stock goes on falling. After taking delivery it took 10 to 15 days to get the buying price. Opportunities are lost, time is also valuable.
 

sudoku1

Well-Known Member
#8
Re: Thanks.

Thanks for your opinions.

I have tested, a falling stock goes on falling. After taking delivery it took 10 to 15 days to get the buying price. Opportunities are lost, time is also valuable.
ITs even more suicidal in a bear mkt....
imagine the plight of invstrs who just kept on converting the intra positions of real estate sec into del in 2008 !:)
 
#9
hi All,

I would never suggest one to do that. it more often than not ties you to the script and takes away from you the choice to use your money on other opportunities.

I will give an example of what I did.

I bought 2000 Indo-City Infotech (532100) on 9th Sep '05 at 16.92 as it was on the uptrend and to make a quick killing. I intended to sqaure it off around 18. But as it haapens, my smart a** got burned and it fell down. I being an eternal optimist held onto it taking delivery of it (not to mention I missed on other opportunities).

Till this day the script has not reached my buying price but I have not sold it. so why am I still clinging to it?

to keep reminding myself not to do such things ever again. I consider that I lost Rs. 34000/- on that fateful day itself, so even at Rs 4.78/- its not a fortune, but a lesson, a whip, a reminder.

Thanks,
Sanjoy
 

columbus

Well-Known Member
#10
hi All,

I would never suggest one to do that. it more often than not ties you to the script and takes away from you the choice to use your money on other opportunities.

I will give an example of what I did.

I bought 2000 Indo-City Infotech (532100) on 9th Sep '05 at 16.92 as it was on the uptrend and to make a quick killing. I intended to sqaure it off around 18. But as it haapens, my smart a** got burned and it fell down. I being an eternal optimist held onto it taking delivery of it (not to mention I missed on other opportunities).

Till this day the script has not reached my buying price but I have not sold it. so why am I still clinging to it?

to keep reminding myself not to do such things ever again. I consider that I lost Rs. 34000/- on that fateful day itself, so even at Rs 4.78/- its not a fortune, but a lesson, a whip, a reminder.

Thanks,
Sanjoy
It is true that in a losing INTRADAY trade proves beneficial
rarely if it converted to POSITINAL but proves to be fatal
in most of the cases.
 

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