BTST or Buy Today Sell Tomorrow is a strategy in forex market where traders sell shares. It is also happened before traders are credited into a Demat account or take the delivery of shares. For your information, Demat account is the abbreviation of dematerialized account. This kind of account is used to hold shares and also securities in electronic format. While in the other hand, the opposite of BTST is called STBT or Sell Today Buy Tomorrow. BTST method has two main advantages which are from the short-term volatility of the stocks and gives traders more times or days to their trades to improve its stock performance when the intraday trading is unprofitable.
On the other hand, BTST method also has disadvantages such as most stockbrokers do not offer margin to BTST facilities and this method also has overnight risk. To avoid the disadvantages of the method, you can rely on these 5 strategies that have been used and suggested by many BTST method users. These strategies will help traders to select stock or improve risk management. These strategies of how to find BTST stocks are proven by analysts and other users
Table of contents
1. Stop Loss in place
BTST strategy surely can offer attractive returns or benefits. But traders have to ensure an be caution at the time of deploying it. The advice is to have a stop loss in the right place and the right time. This strategy could help traders if the your stock price falls the next day. Traders should set a limit at which they will sell the share. It should be done to avoid further losses and save your funds.
2. Take A Step Before Major Event
BTST strategy will work at its maximum performance right before an expected specific event that can cause hypes in stock markets. For some events such as Policy declaration, company results day, a country’s election results, the major decision from big companies or many others can cause shares of the company to rise even in the very short-term. Make sure you foresee this to make it apt for the BTST strategy.
3. The 15-minute Candle Day Analysis Rule
Another piece of advice comes from candle day. Here in the 15 min candle day analysis could give traders to choose the best time to deploy the strategy. First, on the first 15-minute candle timeframe, traders have to mark the high and low. Then traders will start to watch their stock right from 9:30 AM. Here is the line, it can be considered as the good chance to buy if the stock price passes above the resistance line and the average price is weighted. In vice versa, it is the good chance to sell if the stock.
4. Only Trade in Selected High-Liquidity stocks
Large-cap stocks, index-based stocks and others which are traded in large volumes daily are popular highly liquid stocks. Due to careful tracking stock prices, those highly liquid stocks can improve your benefits. It also make traders to find better stock prices. As a result, traders will prepare their position for the next day’s trading
5. Stop Before It is too late
The last strategy is, traders should set an entry price and a target level before they enter the market. Traders should book their profits instantly when the target price is achieved. There’s always an advice to not be greedy or you may lose all of the profits. Another advise, small gains are better than no gains at all. But there’s always a strong possibility and if there is a possibility of more upside, quickly monitor the stock closely and reset the stop loss.
To find more practice for this BTST strategy, you can open your YouTube and find a lot of material there or download BTST trading techniques pdf or buy Today Sell Tomorrow Strategy and many other sources on the internet. The BTST tips also can be used to find the right BTST trading formula for your stocks. Not to mention there are many stocks with different liquids. The right analysis of trading strategy will support your choice in the stock market. For beginners, after learning what is BTS in trading, the next step is how to select BTST stocks which are profitable in current time.