a simple question about intraday trading

#1
assume i buy 100 shares worth 1lakh today. and i expect the price to go up so that i can make some profit.but the price goes down. so why do people see their shares as soon as it goes down. why are they making a loss? why cant they wait till the stock goes up?
 

suri112000

Well-Known Member
#2
assume i buy 100 shares worth 1lakh today. and i expect the price to go up so that i can make some profit.but the price goes down. so why do people see their shares as soon as it goes down. why are they making a loss? why cant they wait till the stock goes up?
You should be able to sell the same shares at higher price than your bought price on the same day before 3 PM in intraday trading. If the price does not come up to your bought price on the same day, you have to sell those shares before 3 PM at less than your bought price and incur loss. In intraday trading, both of your buy and sell quantity should match before 3 PM and you take the difference as profit or loss.
 
#5
Since we are talking about intraday trading, if you dont sell your shares by 3pm, they will be squared off automatically by 3:15(in case of my broker, it varies). And to reply to the first part of your question....,"but the price goes down. so why do people see their shares as soon as it goes down. why are they making a loss? why cant they wait till the stock goes up?".... Waiting for a price to go up again also leaves your position open to severe draw-downs. Risk management is of the essence here, which is why most traders have a predetermined stop loss as a part of their exit strategy.
 
#6
Since we are talking about intraday trading, if you dont sell your shares by 3pm, they will be squared off automatically by 3:15(in case of my broker, it varies). And to reply to the first part of your question....,"but the price goes down. so why do people see their shares as soon as it goes down. why are they making a loss? why cant they wait till the stock goes up?".... Waiting for a price to go up again also leaves your position open to severe draw-downs. Risk management is of the essence here, which is why most traders have a predetermined stop loss as a part of their exit strategy.
how does broker/exchange know that i took intraday position and not longterm position .is there seperate a/c for intraday trading ?
for eg- if i buy sbi @ 100 how does broker/exchange decide it is intraday or longterm.
 

vijkris

Learner and Follower
#7
how does broker/exchange know that i took intraday position and not longterm position .is there seperate a/c for intraday trading ?
for eg- if i buy sbi @ 100 how does broker/exchange decide it is intraday or longterm.
Select CNC for delivery trades. Meaning if your intention is to buy and hold the shares for multiple days/months/years then you need to ensure the shares reside in your demat account. Selecting CNC is your way of communicating this to your broker.

Select NRML or MIS if you want to trade intraday. MIS is a margin product; we will understand more on this when we take up the module on derivatives.
copied from http://zerodha.com/varsity/chapter/the-trading-terminal/

pls read abt stock markets from the beginning. all 13 chapters

http://zerodha.com/varsity/module/introduction-to-stock-markets/

happy trading :clap:
 
#9
how does broker/exchange know that i took intraday position and not longterm position .is there seperate a/c for intraday trading ?
for eg- if i buy sbi @ 100 how does broker/exchange decide it is intraday or longterm.
It depends on how you place your order. CNC(Cash N Carry) for delivery based trades, long term. MIS(Margin Intraday Sq.Off) for intraday trades.
 

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