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| Discuss Short Sell at the Equities within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Can anyone tell me how short selling is done?? If i buy on high price ... |
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#1
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Can anyone tell me how short selling is done??
If i buy on high price the same day and sell while it is on bearing trend will it be counted as a short sell. is there any hidden brokerage charge for this. Please advice. |
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#2
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Quote:
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#3
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The article under the hyperlink (reference article) is excellent. The following is my experience.
1.If the share is listed under trade to trade segment, short sales is not allowed. I had paid penalty two times, without fully understanding the implications. (Natco pharma) 2.when the index is moving positively up, there may be situations, the price of a scrip may be sliding down. In variably 30 mins before the closing of the trading the movement reverses and all gains wiped out and may run over and above the sold price. The stop loss will get triggered. To avoid such a situation, as the prices falls down substantially, keep modifying the stop loss already put at the time of sale. For example if stop loss is put at Rs.120 you can modify it to Rs.118, if still downward slide persists, modify again to 115 etc. this way you can protect the gains made and avoid run over the initial price. 3.On many occasions, the price does not slide down at all it starts moving sideways for a long time, then in a spurt jumps by a few rupees and continues sideways again. You will find the index dipping straight and still the scrip value does not move down. If you lose watch on this in a fraction of second it dips straight pushing the profit in hundreds and jumps back to higher level. 4. Some scrips (orient paper) moves up or slides heavily but ends forzen, viz, no buyers or sellers. In such a situation, you end up with uncovered sales, attracting the penalty etc., 5. However attractive, if the volume is very small better avoid it. These should not deter you from trading. try in very small lots, gain confidence. Without involving nothing can be learnt. stpmds |
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#4
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Thanks Stpmds for all the good advice.
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#5
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Good write up stpmds.
However it is always better to short sell in downtrends and bear markets. |
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#6
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Exa – If I short sale certain share for Rs. 100 and I want to sale the same if price crosses beyond 102, then in this case how should I keep stop loss.
Please advice. |
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