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What mistakes should traders avoid while doing intraday trading?

by Pankhudi Dave Head Finance Manager
As the name suggests, intraday trading is about buying and selling the stocks on a single day. You buy the stocks intending to earn profits by harnessing the stock indices movement. Here, the purpose is not to stay invested for a specific period but to earn massive profits within a single day. Many investors rely on intraday trading tips for making daily investments. But if you are unaware of how such trade works, you may end up with significant losses.

There are some mistakes that you need to avoid in day trading. They are as follows –
Booking early profits and holding to losses

Many of the day traders are guilty of making these errors. They are always in a hurry to book the profits or hold to the losses. This is because emotions such as fear and anxiety play a huge role in the fluctuating market. You need to keep your trade emotions in check and operate with a calm mind. Instead of letting the emotions overwhelm you, set both targets as well as stop-loss, before purchasing or selling any stocks in trades.

Buying and selling based on tips

Business channels, news websites, newspapers, and even family or friends speculate the stock performance. Business channels often call experts to predict trade behaviour and seek intraday trading advice as well. If you are glued to such mediums, there are chances you will get tempted to trade based on these rumours. Remember, it is difficult to predict the market and movement of stocks. So, do not get carried away by the news channels and base your investment decisions upon them. Instead, research how trading works and learn to self-trade.

Risking too much on a few trades

One of the most crucial intraday trading strategies revolves around calibrating the risk levels, Determine the maximum level of risk you can undertake in a single trade, withing a day as well as your overall capital. Risking too much of the capital, energy, and time of trades can impact a sizable portion of the amount invested, especially if there is fluctuation, that affects the investment negatively.

Not understanding trade structure at a fundamental level

If you want to do successful trading, there are multiple factors involved. These include facts such as historical performance, news stories surrounding them, corporate announcements, and its price trajectory. The support and resistance level of the stock is another aspect. These things form the fundamental structure of trading. If you are keen on day trading, you must understand the structure of every script you have invested in. This is one of the reasons why you must invest in limited stocks only.

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About Pankhudi Dave Freshman   Head Finance Manager

9 connections, 0 recommendations, 46 honor points.
Joined APSense since, July 2nd, 2019, From Mumbai, India.

Created on Sep 1st 2020 05:03. Viewed 204 times.

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