Never miss a great news story! Get instant notifications from Economic Times Allow Not now. Choose your reason below and click on the Report button. This will alert our moderators to take action. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Technicals Technical Chart Visualize Screener. NIFTY 50 10, Drag according to your convenience. Most retail investors say they have been staying away from the stock market because share prices have been very volatile of late.
But day traders have a different take. They say the market has been volatile in recent times, but not so much for them to make profitable trades. As a result, though the market is hovering at its all-time high, day traders are not a very happy lot.
To stay afloat, many of them have changed their strategy. Rather than square off their transactions on the same day, these market participants are now carrying over their trades to the following day.
This pushes up the cost of doing a trade and also means bigger risk, but for the time being, day traders are finding this strategy to be profitable. Day traders say they are not making enough money in intra day trades. The reason is simple. Consider, the pattern of the equity market in the past few weeks to the general trading pattern. Of late, benchmark indices have been opening with a huge gap over the previous close and then trade almost flat for the remainder of the session.
This takes the volatility aspect out of the game. The net result - day traders can't make money. Day traders thrive when there are wild swings in share prices.
Markets may have been witnessing big moves on either sides, but day traders have not benefited much. The average volatility post the opening level has come down to 0. With Sensex at odd levels, a 0. So, even when the market has moved points, a day trader can barely make anything out of it.
Next, look at individual stocks. Stocks which are in the news move with a huge gap at open and then trade flat. Here too, the day trader takes a beating, as volatility post open is restricted. So the change in strategy - buy today, sell tomorrow. It is almost like day trading, the only difference being that trades are carried forward to the next day where in profits or losses are booked. One of the unintended results of this strategy is that trades are shown as delivery trades, pushing up delivery volumes even for speculative transactions.
But, then again there are certain days when the market does throw some surprises. Like how the benchmark indices finished on Monday. Investors made a killing in these stks. Four Aadhaar linking deadlines you should not miss. My Saved Articles Sign in Sign up. Find this comment offensive? This will alert our moderators to take action Name Reason for reporting: Foul language Slanderous Inciting hatred against a certain community Others. Your Reason has been Reported to the admin.
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