6 Common BTST Trading Mistakes to Avoid

Common Mistakes to Avoid in BTST Trading

Buy Today Sell Tomorrow is rapidly becoming a famous trading method that is attracting traders across the country. The reason is the immense opportunity for high profits. But to make this a reality, traders must avoid these common mistakes people are prone to make.

This article will alert you to common mistakes and how to stop yourself from making them. By the end of it, we are sure you'll spot the signs and protect yourself and your capital from them.

1. Ignoring Learning About Trading & The BTST Method

The BTST trading method isn't like all the other methods. There are specific rules to follow, and not following them can be expensive!

The trade must start and end in the same trading session. Failure to complete the trade within time can lead to more risk and increased transaction costs.

It is the last thing a beginner using the buy today, sell tomorrow technique would want, so you need to take the time to learn everything you need about this method. Knowing the rules and guidelines for using this method will prevent this mistake.

2. Trading in Non-Liquid Stocks

This whole technique relies on selecting liquid stocks. Highly liquid stocks are easy to buy and sell, and this is essential, seeing as you must complete the trade in a day! Choosing stocks that aren't liquid means they are not easy to sell, which leads to delays.

Traders need to research their stocks before committing to a trade. Selecting liquid stocks is essential and a way to ensure you can complete the other part of the trade on time.

3. Not Researching Enough Before Investing

Choosing any stock for a BTST trade will not assure you of a profit! You must research the price charts, market situation, and the company to calculate the chances of making profits.

Taking an online stock market course is one way of learning about the stock market. It is also a way to learn the vital skill of technical analysis. Once you have researched and studied the stock market, you'll feel more confident using the BTST trading method.

4. Not Using a Stop-loss Order

Changes in the market can bring about uncertainty or market volatility. These lead to changes in stock prices, which can bring about profits.

However, the market may not go your way each time, and this could result in a loss. It is more likely if you haven't used a stop-loss order. Ask the best SEBI registered analyst, and they will tell you this mistake is the most common!

Step-loss orders allow you to set a price limit where stocks sell as soon as the price matches your set limit.

It would ensure shares sell for an amount that guarantees a profit. An added advantage is that you won't have to sit and monitor the market to effect the trade at the desired price.

5. Ignoring Expert Advice & Call Services

You can consult a BTST calls provider for insight on BTST trading. These calls are from stock market experts who have been on the market for decades.

Their knowledge and experience make them an excellent option for beginners who lack that much experience. However, traders must take care to use their discretion and choose an expert after researching their background and accuracy rates.

6. Relying on Emotions to Trade

Trusting your emotions doesn't cut it when trading on the stock market. Emotions like panic, fear, and uncertainty can take control of decisions, leading to losses.

The best traders practice discipline, which means their emotions play a minimal role in decision-making. You must learn to trust the knowledge and research even when it looks unlikely that you'll make a profit.

This same discipline will bring you more profits if you pair it with trades made with confident research! Besides, it's a good quality to maintain while transacting on the stock market.

Conclusion

There are quite a few mistakes you can make when using the BTST trading method. By knowing the mistakes and how to avoid them, you can enjoy more profits while using this buy today, sell tomorrow technique.

We hope you prepare yourself with this article and don't make these mistakes!