Macharia please tondorere timing is everything when you are a day trader, you be must be ahead od the curve daytrading does not mean that you must sell in the evening you can wait till stock valimbs climbs before you sell that is what makes wall street so we need a Biashara street for NSE so that we can have Ndumes and kundules. Obviously in the stock market you must research and stay on your feet inorder to make money so you being a conservative trader daytrading is not for you.

The truth is, while day trading,options trading and short selling may seem attractive to some folks, the conventional way of investing (buy low sell high) is the only one that offers you the best returns. Statistics in the US say that 88% of short sellers end up loosing their cash and 93% of day traders loose their cash. Buying Low and Selling very very high has been tried, tested and certified the best way of investing. So I wouldn't care much for short selling or day trading on the NSE.

Everyone whos has contributed on this issue has very valid points, and thats the whole idea in the sense that we understand the pitfalls of NSe but how is the volume going to increase without allowing more products into the market? This bottlenecks that have been brought to light on this forum is what is working against us. We cant just wait and expect to catch up with the rest of the world. NSE is now computerized I dont see why the wait except that we have incomptent people at the top on NSE.

Where there is will there is a way. Unfortunately inefficiency is great news for middlemen because that's where they thrive making profits. High transaction costs and long clearing times profit brokers and people that actually have to process transactions like the bourse itself. But, like in the case of bringing order to matatus, making the system efficient has the potential to make the exchange and brokers more money through volumes of trade. Perhaps when things speed up, become more efficient and cost less per transaction, we'll see more products, commodities trading, short selling, discount brokers, and so on.

The concept of NSE introducing short selling will also dependd on volumes traded on the exchange. If the exchange sees that volumes are worth it they would then apply for a law allowing the practice of one selling securities that they do not own since that is what short selling basically involves.

There should also be stock brokers ready to sell this service and in fact be market makers to their clients since after the stock market has permitted the practice, it is the brokers themeselves that wil do the buying, lending and selling on behalf of investors.

As the market grows, things like short selling may come your way sooneer than you expect. In the mean time, as we wait for more to come, we should educate ourselves and be smart at the simpler investment methods available.

Thank you so much Chris a very informative response. That leads to my second question can't NSE introduce this concept to make it more attractive to foreign investors and other stock holders who wish to profit from the stock market by shortselling as other stock markets around the world do. After 45 years of independence, we should as economy be able move capital in rather fast pace manner in order to boost the economic growth. We have the technology why are so slow, no wonder we cant create jobs.

Day trading works where there are high trading volumes giving liquidity that enables one to move in and out of stocks quickly without distorting price movements. With the low volumes traded on NSE, spreads are likely to be high and even small trades are likely to abnormally move prices.

Further to that, trading on NSE is so expensive profits will tend to go to the broker and other expenses.

On the other hand, I think the available prices are delayed and not real-time live quotations. Since day trade heavily depends on instant reaction to price, news and volume movements, you will be at a disadvantage if your trading action wil be depending on old prices.

Is daytrading available in the NSE thats is Instant buying and selling of shares buy in the morning sell in the evening type of thing.(Realtime Trading). I have no Idea so if there is someone out there who knows give me your feedback and some information on which Brokers are best at handling in this without kularing my money. Anyone Please jump in and educate me