Intraday Trading Knowledge 8, Do & Don't for Intraday Traders

Dos & Don'ts for Intraday Traders

Day traders Buy or Sell Stocks several times every day and close out all positions before the market closes.
The expectation of Traders is making small profits with as little risk as possible and they simply look for potential price movement Based on Technical Analysis. 

• Plan your trade. Trade as per your plan.

Select your Stock, Decide the Quantity, Decide the entry and exit price and Decide the amount of money you can loose if the trade goes against you.
Trading in Opening and Closing hours of the market is Risky but Rewarding.

• Use a Stop Loss

Always trade with Stop Loss. Set Stop Loss Sell Order just below the low of the day or Support level and Stop Loss Buy Order just above the high of the day or Resistance level.

• Never Trade too many stocks at once

Always trade in High Volume Index based Shares.
Select Three or five stocks for Trading.

• Get the price movement between the bottom and top

It is not possible to Buy at the Bottom and Sell at the Top.
Try to trade between the Bottom and Top.

• Buy a stock

Always buy a stock that is going Up. Buying level is just above the previous closing price.

• Short the stock

Always sell the stock that is going down. Selling level is just below the previous closing price.

• Don't average Your Position

One common mistake by Traders is averaging Loss making position. You must exit if the trade goes against you.   

• Take control of your greed

Book Profit and leave the trading hall and enjoy the day.

• Take control of your fear

Cut your loss - Relax – Forget your loss quickly. Wait for next Opportunity. You can Win.

• Keep records of your trading results.

Always record details of your trades and mistakes. Accept failure as a step towards victory.