The Secret to Success in Intra-Day Trading || Is Intraday Trading Profitable?:
Most of the traders who enter the stock market often wonder whether intraday trading is profitable or not. The answer is it is very much profitable if done with the right research, dedication, and hard work. Intraday trading is a lot more than making profits. It is about managing risks and following the trend of the market.
Most traders lose money in the stock market in intraday trading because they commit one of the following mistakes.
Mistakes Intraday Traders Commit
#1. Trading Without Technical Analysis
One of the common mistakes that traders do is taking a position without technical analysis. Intraday trading is not a game of hope and luck, it requires proper knowledge of chart reading. It is always advisable to trade in the stock market after analyzing the price and volume chart along with other indicators. With technical analysis, you will be able to pick the right stocks for intraday trading.
#2. Is Intraday Trading Profitable?
Maximum intraday buyers lose money. This is due to the fact they alternate without a plan, without an approach.
Many don’t use prevent losses. Often, they commit huge quantities of capital in a single change. In such situations, a single awful change takes a large chew out of their trading capital that’s difficult to earn back.
To make constant income in intraday trading, you want to comply with a valid trading approach. This method must be constructed upon an amazing grounding within the fundamentals of technical analysis.
It will require a few trials and mistakes on your part. It’ll take time. But as soon as you have got a prevailing buying and selling approach, intra-day trading will become profitable.
Don’t Forget To Check: Is Intraday Trading Profitable?
#3. Following Tips
Most intraday traders suffer losses because they trade based on tips. The only consistent way to make profits in the market is self-learning and trading accordingly. Tips might be useful to you on some days but they would not work all the time. An intraday trader must learn charts, and indicators and take trades without depending on anyone else. Most intraday traders do not practice this and ultimately they lose money in the stock market.
Must Know: Best Trading Tips For Beginners
#4. Trading Without Stop Loss
Putting stop loss is essential in intraday trading. It protects your capital from significant losses and keeps you in the game of trading. A stop loss potentially saves your capital and makes you a disciplined trader. Trading without a stop loss is like trading with the fire. Putting a stop loss order is simple and easy. It hardly takes a few seconds. Therefore, one of the keys to success in intraday trading is putting stop loss in your trades.
#5. Trading in Illiquid Stocks
Intraday trading involves squaring off your trade by the end of the day. This is possible only when the stock in which you are trading has sufficient volumes. Trading in stock with lower volumes can cause problems as you might not be able to find buyers or sellers to square off the trade. Therefore, it is always better to trade in companies that have higher volumes.
Know List of High Volume Stocks: Nifty 50 Stock List
#6. Being Emotional
While trading in the market it is important to keep your emotions aside. Emotions have no place in trading. Whether profits or losses, you must keep the emotional aspect aside. While doing intraday trading a neutral attitude in any circumstances is important to be successful. Most traders get emotional with their trades and do not square off the transaction because of emotions and ultimately leading to losses.
#7. No Trading Plan
Most traders take a trade without any trading plan. A trading plan must outline the entry and exit point. Without a plan in place, it is not possible to be successful consistently in the stock market. A trading plan ensures that you follow certain rules while trading. A trading plan must have a stop loss, entry and exit price, correct trading hours, etc.
The above mentioned are some of the points you may follow while doing intraday trading. Always remember that trading is an art and not a gamble. Take it as a serious business to be successful. The moment you start trading to become rich overnight, you would not be able to survive. Be consistent with your strategies and the market will reward you. We hope that you like our blog The Secret to Success in Intra-Day Trading || Is Intraday Trading Profitable?” To learn more about the stock market you may subscribe to the free blogs and articles available on Trading Fuel.