The T 3 theory is widespread but has no basis due to contra.
For example if you look at contra policy of largest online broker Commsec [others differ] - a buy and sell on same day is offset. A buy followed by sell on the following day is offset. BUT if you hold after T1 - you are NOT offset .
So by T3 it is too late to take advantage of contra t/a..you have to pay the full amount regardless if you sell on that day.
Taking example of Commsec [others differ] - T or T1 is far more important because if you sell the shares within that time you do NOT pay full purchase amount but merely pay or receive the difference [between buy and sell]
In the case of BTA you had the classic spike stall reverse [happens alot eg INP ] on 23/2 and from 10.41 am on that day the intraday chart was making lower highs..so obvious heading down.
The Pros just sell on the spikes and then wait for definite signs of support/reverse to reenter [unless doing quick intraday bounce trades]. Meanwhile often newbies buy on that spike and then ride the stock down as they don`t have stops. Anyway when the newbies have finally suffered enough pain they dump and this is usually about the time of reversal and so Pros buy back.
Its the circle of trading life.
BTA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
