I have a question

#1
I am a newbie in day trading. I do know day trading mean you buy and sell shares in a day.

My question is, what if you buy 500 shares from say xyz company for 100 per shares and then the value of the share falls below 100 per share. Can I wait for a couple of days or weeks for the shares to go up above 100 per share? Like say, my target to sell the shares for 120 per shares. Can I wait for it for more than a day? Or am I compelled to trade it on the same day?

:confused:
 

Einstein

Well-Known Member
#2
Hi Jasec, seems like you are beginner in stock market, so let me explain the best I can.

If you want to buy 500 shares @ 100$ per share. means total investment of 50,000$. you wait for years for the stock price to hit your target, no problem. thats called buying on delivery.

but if you want to maximize your trade you can also buy on 'Intra day basis'. why??

Buying on intraday means you buy and sell on the same day, before the market closes, if you do this, most of the stock brokers out there can give you 10 times the leverage on your trading money. if you put 50,000$ in your account, then you should be able to buy and sell on same day with 500,000$.

so If you bought stock price trading at 100$ and sold it at 102$ (change of 2% on stock), then your profit will be
Buy=[5000 shares at 100$ = 500,000$]
Sell=[5000 shares at 102$ = 510,000$]
Profit= 10,000$. on your initial investment of 50,000$, thats return on 20% in 1 day.

thats the beauty of leverage, but if it went down 2%, you will loose 20% in 1 day too.

most importantly, control your emotions if want to go with day trading, I remember, I had chunk of money in my trading account for first 4 months, and I didn't trade, I was doing strictly paper trading and learning from my mistake.

As a begineer I advise you to work on delivery basis and learn more on stock market from website like
http://www.sharemarketschool.com/

Try to learn Technical analysis first, buy software like amibroker, metastock, etc, and make your database of all stock. learn about macd, stoch, RSI indicators etc. learn about fundamental analysis, read books on fundamental analysis, like 'Security analysis, An intelligent investor'(best ever). learn about derivatives (futures and options).

good luck with your trading/investing whatever you choose.
 
#3
Hi Jasec, seems like you are beginner in stock market, so let me explain the best I can.

If you want to buy 500 shares @ 100$ per share. means total investment of 50,000$. you wait for years for the stock price to hit your target, no problem. thats called buying on delivery.

but if you want to maximize your trade you can also buy on 'Intra day basis'. why??

Buying on intraday means you buy and sell on the same day, before the market closes, if you do this, most of the stock brokers out there can give you 10 times the leverage on your trading money. if you put 50,000$ in your account, then you should be able to buy and sell on same day with 500,000$.

so If you bought stock price trading at 100$ and sold it at 102$ (change of 2% on stock), then your profit will be
Buy=[5000 shares at 100$ = 500,000$]
Sell=[5000 shares at 102$ = 510,000$]
Profit= 10,000$. on your initial investment of 50,000$, thats return on 20% in 1 day.

thats the beauty of leverage, but if it went down 2%, you will loose 20% in 1 day too.

most importantly, control your emotions if want to go with day trading, I remember, I had chunk of money in my trading account for first 4 months, and I didn't trade, I was doing strictly paper trading and learning from my mistake.

As a begineer I advise you to work on delivery basis and learn more on stock market from website like
http://www.sharemarketschool.com/

Try to learn Technical analysis first, buy software like amibroker, metastock, etc, and make your database of all stock. learn about macd, stoch, RSI indicators etc. learn about fundamental analysis, read books on fundamental analysis, like 'Security analysis, An intelligent investor'(best ever). learn about derivatives (futures and options).

good luck with your trading/investing whatever you choose.
Let me get this right. You are saying, even if I had opted for day trading, I buy 500 shares from a xyz company @ $100 per shares. Then at the end of the day the shares of the xyz company falls to $98 so I do not intend to sell them at a loss. I hold the shares for say perhaps a day or two until the price of the shares rises to $105 and then sell them. So, is this feasible?
 

rkkarnani

Well-Known Member
#4
Let me get this right. You are saying, even if I had opted for day trading, I buy 500 shares from a xyz company @ $100 per shares. Then at the end of the day the shares of the xyz company falls to $98 so I do not intend to sell them at a loss. I hold the shares for say perhaps a day or two until the price of the shares rises to $105 and then sell them. So, is this feasible?
You can opt for "Day trading" and then can change your mind to taking delivery.
If you have enough Balance in your Bank Account and your Bank Account is Debited for the cost of the shares bought, the broker is least interested or cares whether you hold them for 2 days or eternity.
Now coming to "Is this feasible?" If you mean to ask whether it should be done ? Cannot have a proper answer as it requires predicting the future. If price goes up it is feasible.......
If you mean to ask something else when you say 'feasible' , please clarify. If you meant "Is this possible?" then your query is answered ! :)
 
#5
You can opt for "Day trading" and then can change your mind to taking delivery.
If you have enough Balance in your Bank Account and your Bank Account is Debited for the cost of the shares bought, the broker is least interested or cares whether you hold them for 2 days or eternity.
Now coming to "Is this feasible?" If you mean to ask whether it should be done ? Cannot have a proper answer as it requires predicting the future. If price goes up it is feasible.......
If you mean to ask something else when you say 'feasible' , please clarify. If you meant "Is this possible?" then your query is answered ! :)
Thank you, yes I did mean "Is this possible?"
Yes I shall have enough bank balance to ensure the losses. :thumb:
 

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