assume i buy 100 shares worth 1lakh today. and i expect the price to go up so that i can make some profit.but the price goes down. so why do people see their shares as soon as it goes down. why are they making a loss? why cant they wait till the stock goes up?
when they enter for intraday, they mostly take leverage ... so, they cannot wait forever as the trade needs to be closed on the same day ... so, theres always a possibility that the stock can keep going down for the day ....
if you plan to hold longer than a day also, the possibility of a stock to keep going down is possible ... 2008 market crash is an example ... many stocks have still not come back to old prices back in 2008 ...
Unitech which was around 600 before 2008 is now below 10 ... and it may never ever go back to 600 ...
People don't have that 1 lac when they do intraday trade. But in case u r confident of the company u can convert it to delivery and u will get the shares in demat account.
It is always safer to do intraday in bluechip shares like TCS. Even if u incur loss u can always safely convert it to delivery.
But the trading turnover must be 1 lac or so. If trading turnover is say 1 crore no way but to exit and incur the loss
In intraday, you are bound by time as you need to close your position before market closes, or your broker will do so on your behalf. Also, people who have no idea of stock movement just take a stock which is looking good and when they make a loss they panic.
Register To Reply
