Monday, October 4, 2010

Why overnight BTST works!

(This article is dedicated to my friend Rishant Verma who believed in overnight BTST so fanatically that I was forced to take it seriously and discover the magic! I was so amazed by the tactic that I decided to refine it to a higher level and thus got my holy grail at the darkest hour of my trading career!)

Why overnight BTST works?

* No-loss game!

= If you blindly buy a good stock or index in the last minute of the day's trade and sell it in the first trading minute the next day, you are assured that you will not have lost anything on monthly basis. Any 1 or 2 or 3 days negative run is assuredly cancelled by handsome gap-up runs sooner than later! Atleast 50-60% success rate is assured if you don't change the stock/index, if you don't quit after the negative day (if at all) and if you ONLY BUY (i.e.BTST and not STBT).

Once having got this assurance, all you need to do is find ways and means and tactics to increase this success percentage beyond 50 or 60%. It can go as high as 90% (or even more for some stretches!)

* Big market players can't trick you!

= since the markets are closed and you can't act or react, big players can't excite you to mistake! This is the number 1 benefit of overnight btst and immunity from the no.1 weakness of any trader!

* No problem of impatience

= When the market is open, the itch of "book whatever profit u r getting before it is gone" takes it toll on you! In overnight BTST this possibility simply doesn't exist as the markets are closed.

Either you win big or lose big! No peanuts.....the rewards of being right are assured to be big!

* You are assured of gap-up openings even during bear runs!

= Everyday is a "hopeful" day in overnight BTST. During bear runs, BTST supported by some technical indicator brings handsome results. During Bull runs, there is a windfall of profits.

* Markets generally fall during trading hours and rise at the opening!

= People need time to let their emotions and herd-mentality get into the trade and start throwing stocks!

* Buying is natural, selling is not!

= Overselling is promptly reversed, overbuying doesn't!

1 comment:

rudswa said...

this is what exactly i prefer to do ..... especially emotion part comes handy here . but gives some sleepless nights if u follow worldmarkets ........