Avoid These Common BTST Trading Mistakes

Introduction

BTST (Buy Today, Sell Tomorrow) trading can be exciting — and profitable — if done right. But like any strategy, success in BTST depends on avoiding costly missteps that traders often make out of haste, greed, or lack of preparation.

Many beginners assume BTST is a "shortcut to profit," but that’s far from the truth. To truly make the most of it, you must approach it with discipline and a clear strategy. In this post, we'll break down some of the most common mistakes traders make in BTST — and how you can avoid them.

1. Chasing Stocks After a Breakout

Why It’s a Mistake:

A common temptation is to jump into a stock after it has already made a big move. The problem? You’re often late to the party.

What Happens:

• You buy after the price has already surged

• There’s little room left for next-day upside

• The stock may correct or consolidate

What to Do Instead:

• Enter early on confirmation of breakout with volume

• Don’t chase — plan your entry before the move

2. Ignoring Delivery Percentage

Why It’s a Mistake:

Volume alone isn’t enough. A stock may be seeing high trading activity, but if very little of that is being taken for delivery, it’s mostly intraday churn.

What Happens:

• High volatility

• Weak follow-through the next day

• BTST trade fails due to lack of genuine interest

What to Do Instead:

• Look for stocks with delivery percentage above 35–40%

• Combine delivery data with volume to validate momentum

3. Holding Without a Plan

Why It’s a Mistake:

BTST is a time-sensitive strategy. Many traders hold on hoping for higher prices the next day, only to face a gap-down or reversal.

What Happens:

• Missed opportunity to book profit on gap-up

• Panic exits if stock opens lower

What to Do Instead:

• Set entry, target, and exit before you place the trade

• Stick to your plan — emotion kills returns

4. Not Tracking News and Announcements

Why It’s a Mistake:

BTST is highly reactive to overnight news — especially earnings, policy changes, or global developments.

What Happens:

• You enter a stock unaware of key news

• Negative news causes a gap-down

What to Do Instead:

• Check for upcoming events before taking any BTST trade

• Stay updated with post-market headlines and analyst calls

5. Overexposing Capital

Why It’s a Mistake:

BTST might look low-risk because of the short time frame, but the volatility can wipe out gains quickly if you're over-leveraged.

What Happens:

• One gap-down wipes out a large portion of capital

• Difficult to recover from back-to-back losses

What to Do Instead:

• Limit BTST exposure to a small portion of your trading capital

• Diversify your trades, don’t go all-in on one stock

6. Trading Illiquid or Penny Stocks

Why It’s a Mistake:

These stocks often move based on manipulation, not real demand. Low liquidity means you may not even be able to exit when needed.

What Happens:

• Gets stuck in a stock with no buyers

• High slippage and volatility

What to Do Instead:

• Stick to high-volume, actively traded stocks

• Avoid stocks with wide bid-ask spreads

7. Not Reviewing Past Trades

Why It’s a Mistake:

Most traders repeat the same mistakes because they never look back and analyze what went wrong.

What Happens:

• Lack of improvement over time

• No clue what works and what doesn’t

What to Do Instead:

• Maintain a trade journal

• Note down why you entered, how the stock moved, and what you learned

Final Thoughts

BTST trading rewards sharp decision-making, but punishes careless habits. The difference between a winning and losing trade often comes down to avoiding simple — yet critical — mistakes.

By applying the lessons in this article, you can approach BTST with more structure, confidence, and consistency.

And if you want to skip the guesswork, check out BTSTStocks.com — where our team filters stocks using these exact principles. Sign up to get daily, handpicked BTST stock picks — before the market opens.