Looking for a short-term trading strategy that doesn’t require sitting in front of your screen all day? The BTST (Buy Today, Sell Tomorrow) strategy might be exactly what you need. This approach lets you enter a stock trade just before the market closes and exit it the very next morning. In this article, we'll explain all you need to learn about the BTST trading strategy and if it's the right fit for you!
BTST stands for Buy Today, Sell Tomorrow. As the name suggests, you buy a stock just before the market closes (typically around 3:20 PM) and sell it when the market opens the next day (9:15 AM). The aim is to capitalise on overnight price gaps created by positive news, earnings reports, or technical breakouts.
BTST trades are based on the expectation of a gap-up the next morning. You should look for stocks that meet one or more of these conditions:
1. Upcoming Company Earnings
Stocks with upcoming earnings can open with strong momentum if the results are expected to be good.
2. Stocks in the News
Positive news or sector-specific developments can drive prices higher.
3. Technical Breakouts
Breakouts from consolidation zones or resistance levels, especially on higher volumes, are ideal setups.
✅ Option 1: Use News Portals
Visit sites like MoneyControl or CNBC TV18 to identify trending stocks, upcoming results, or sectoral news.
✅ Option 2: TradingView Earnings Calendar
- Open TradingView
- Click on the “Calendar” tab
- Filter results by India only
- Check stocks with earnings scheduled for the next day
- Combine this info with chart analysis before taking any trade.
Use our custom-built BTST Screener on Chartink that identifies stocks:
Why 3:20 PM?
If a stock shows strong buying interest during market close, it could indicate institutional buying and a possible gap-up the next morning.
1. Trade Only Liquid Stocks: Avoid small-cap or illiquid stocks. These are more prone to gap-downs and slippage.
2. Stick to Trending Stocks: Go with stocks that are already in an uptrend or have positive sentiment.
3. Follow Proper Position Sizing: Use a Swing Position Sizing Calculator to avoid risking more than 2% of your capital per trade. For example, if your stop-loss is 2% below the entry, aim for a 3–4% target, ensuring a solid risk-reward ratio.
Pros:
- Quick results (next-day exit)
- Less screen time required
- Can be enhanced with leverage
- Based on simple price/volume logic
Cons:
- Risk of overnight gap-downs
- Can't place stop-loss overnight
- Works best only in trending markets
- Not suitable for beginners without risk control
BTST is a powerful short-term strategy if used with discipline, risk management, and a solid screener. It’s not magic—it’s momentum-based. Learn the setup, test it out, and customise it for your trading style.
Remember:
1. Don’t go all-in on a single stock.
2. Always diversify and limit exposure.
3. Focus on learning and surviving, not just profits.