100% risk free way to cover intra day trade

#1
Hello Friends
I am relatively new to the world of trading and have done a bit 2 years back and that was ill informed swing trading. Anyways, now I am doing my due diligence and doing my share of research and reading on equity intra day and options trading.

I had a scenario which came to my mind and share with you for your valuable inputs and corrections/suggestions, please do read and let know your thoughts:

In case of intra day share trading if suppose i buy some shares of a company with the expectation that it would rise by the end of day; but if it does not happen and the stock goes down say by 2:50pm i can always decide to change that intra day and make it into a delivery and those shares go into my Demat account. I can always wait for an indefinite no. of days till the shares start to rise and say after 10 days it is higher than i bought and then i can always decide to sell that. So i do not find much risk in intraday , except for 2 negatives one is that i would have to pay more brokerage while taking delivery than and then while selling i would have to pay DP charges ? Isnt it? Or is there anything i am missing.

Thanks
 
#2
Hello Friends
I am relatively new to the world of trading and have done a bit 2 years back and that was ill informed swing trading. Anyways, now I am doing my due diligence and doing my share of research and reading on equity intra day and options trading.

I had a scenario which came to my mind and share with you for your valuable inputs and corrections/suggestions, please do read and let know your thoughts:

In case of intra day share trading if suppose i buy some shares of a company with the expectation that it would rise by the end of day; but if it does not happen and the stock goes down say by 2:50pm i can always decide to change that intra day and make it into a delivery and those shares go into my Demat account. I can always wait for an indefinite no. of days till the shares start to rise and say after 10 days it is higher than i bought and then i can always decide to sell that. So i do not find much risk in intraday , except for 2 negatives one is that i would have to pay more brokerage while taking delivery than and then while selling i would have to pay DP charges ? Isnt it? Or is there anything i am missing.

Thanks
So the failed intraday trade is converted into a delivery buy. That is not how traders trade. Trade is a trade, either it works out or you get out of it. In your strategy, there are following dangers.

1) If you are playing with leverage, you cannot take full delivery. If you are not playing with leverage, then you are playing small quantity.

2) Your capital gets locked for next 10 days so you become a sitting duck. You cannot do any other trade for next 10-15 days which will take for the stock to recover.

3) There is no guarantee that the stock will come to your buying price...if it goes on cracking every day, you can loose 30-40 or even 80 % of your capital.

Your strategy may work a few times but it will hit you very hard if the market crashes. Dont do that , that is not how daytraders trade.Take your loss and look for the next trade.

Smart_trade
 

toocool

Well-Known Member
#3
Hello Friends
I am relatively new to the world of trading and have done a bit 2 years back and that was ill informed swing trading. Anyways, now I am doing my due diligence and doing my share of research and reading on equity intra day and options trading.

I had a scenario which came to my mind and share with you for your valuable inputs and corrections/suggestions, please do read and let know your thoughts:

In case of intra day share trading if suppose i buy some shares of a company with the expectation that it would rise by the end of day; but if it does not happen and the stock goes down say by 2:50pm i can always decide to change that intra day and make it into a delivery and those shares go into my Demat account. I can always wait for an indefinite no. of days till the shares start to rise and say after 10 days it is higher than i bought and then i can always decide to sell that. So i do not find much risk in intraday , except for 2 negatives one is that i would have to pay more brokerage while taking delivery than and then while selling i would have to pay DP charges ? Isnt it? Or is there anything i am missing.

Thanks
Seriously?

If you cannot tolerate some losses in trading you just stay away from trading and you will do big favor to yourself and people around you.

Or you can start to look trading from a new perspective, ie, there will be some losses always but you must find a way to be net positive after a series of trades
 
#4
Hello Friends
I am relatively new to the world of trading and have done a bit 2 years back and that was ill informed swing trading. Anyways, now I am doing my due diligence and doing my share of research and reading on equity intra day and options trading.

I had a scenario which came to my mind and share with you for your valuable inputs and corrections/suggestions, please do read and let know your thoughts:

In case of intra day share trading if suppose i buy some shares of a company with the expectation that it would rise by the end of day; but if it does not happen and the stock goes down say by 2:50pm i can always decide to change that intra day and make it into a delivery and those shares go into my Demat account. I can always wait for an indefinite no. of days till the shares start to rise and say after 10 days it is higher than i bought and then i can always decide to sell that. So i do not find much risk in intraday , except for 2 negatives one is that i would have to pay more brokerage while taking delivery than and then while selling i would have to pay DP charges ? Isnt it? Or is there anything i am missing.

Thanks
You has to buy stock always in intraday but can't able to short at high rates because it doesn't get converted into delivery...
Missing shorts at high price of stock
 
#5
You has to buy stock always in intraday but can't able to short at high rates because it doesn't get converted into delivery...
Missing shorts at high price of stock
---------------------------------------------------------------
yes, appajib

that is true and one negative , I would not be able to short with this strategy.
thank you very much for mentioning that.


ethicaldeal
 
#6
You has to buy stock always in intraday but can't able to short at high rates because it doesn't get converted into delivery...
Missing shorts at high price of stock
---------------------------------------------------------------
yes, appajib

that is true and one negative , I would not be able to short with this strategy.
thank you very much for mentioning that.


ethicaldeal
 
#7
Seriously?

If you cannot tolerate some losses in trading you just stay away from trading and you will do big favor to yourself and people around you.

Or you can start to look trading from a new perspective, ie, there will be some losses always but you must find a way to be net positive after a series of trades
hello toocool

I appreciate your response, because my intention is to ensure whether my thinking is correct or flawed and for that I want to get the maximum responses from experienced forum veterans

Thank you
ethical deal
 
#8
If you have funds to convert the intraday positions to delivery, and funds are large enough why don't you try stock futures. Not only can you trade intraday but also keep it for 10 days, all while leveraged. and paying low brokerage
 
#9
So the failed intraday trade is converted into a delivery buy. That is not how traders trade. Trade is a trade, either it works out or you get out of it. In your strategy, there are following dangers.

1) If you are playing with leverage, you cannot take full delivery. If you are not playing with leverage, then you are playing small quantity.

2) Your capital gets locked for next 10 days so you become a sitting duck. You cannot do any other trade for next 10-15 days which will take for the stock to recover.

3) There is no guarantee that the stock will come to your buying price...if it goes on cracking every day, you can loose 30-40 or even 80 % of your capital.

Your strategy may work a few times but it will hit you very hard if the market crashes. Dont do that , that is not how daytraders trade.Take your loss and look for the next trade.

Smart_trade
-------------------------------------------------
hello smart_trade

thank you for the details provided in the 3 points. I had these in my mind but I wanted to hear it from other experience traders.

Thank you very much

ethicaldeal
 

toocool

Well-Known Member
#10
hello toocool

I appreciate your response, because my intention is to ensure whether my thinking is correct or flawed and for that I want to get the maximum responses from experienced forum veterans

Thank you
ethical deal
In 2008 when I was just a normal speculator nifty had a range of mostly 100 points per day, means it's high and lows had a difference of 100 points.
And I wanted /thought only half of the range as a profit per day, I thought it shouldn't be difficult :screwy:
 

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