Small Change

Why I have no love for contra trading

The duration to settle contra trades will be cut by one day from Dec 10 but I won't mind that, having seen the ruinous impact on a relative.

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Contra trading, in which short-term traders buy and then sell the same stock within a stipulated window, is a well-known trading strategy among retail investors.

It is particularly dear to the heart of old-timers who traded profitably in the past and yearn for those good old days.

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A version of this article appeared in the print edition of The Sunday Times on November 25, 2018, with the headline Why I have no love for contra trading. Subscribe