In this article, I will discuss the top 10 points to make money in Intra day trading. If you will use the points mentioned below properly, it will definitely help you to grow your small demat account.
1. Control your emotions
2. Do Paper Trading
3. Do not invest all you have
4. Accept the losses you made
5. Not all the moves can be correct
6. Use Indicators
7. Profits at higher side and losses at lower side
8. Go with the Trend of Market
9. Avoid the trade in pre-market session (9:00 AM to 09:15 AM), Let the market settle
10. Do not catch the falling knife
Now we will discuss each and every point in detail.
1. Control your emotions
Do not bring the emotions with you, when you are entering the stock market. Generally the traders convert their profits into losses due to emotions and greed. While entering any stock ask yourself that is it the perfect time to take a move or you are doing it because of your emotions ? People think that they will double their investment in few days with the help of stock market and ends by losing their invested money too. Control your emotions
2. Do Paper Trading
Before investing real money into the stock market do paper trading sincerely. Just take a paper and pen and execute the trade on the paper and calculate your MTM. You will get to know about the returns of your day and also help you to understand that what will be the right time to invest in stock market for you.
3. Do not Invest all you have
Amount you are depositing in your demat account is at the risk of stock market. Generally traders invest all their hard earned money into the stock market at one go and incur huge losses because of that. Once you have done with the paper trading, Invest the smaller amount and as your percentage return start growing then think about increasing your investment.
4. Accept the losses you made
Accept that the losses incurred in the stock market is because of your greed, emotions and wrong call. Do not blame stock market for that. Always remember that share market is the zero sum game where some investors earn and some lose. Only you are responsible for the trade not the stock market. Accept your mistakes and learn.
5. Not all the moves can be correct
All the moves taken by you cannot be correct. You cannot be 100% sure that if you have taken a buy call then the share price will definitely increase. You have to understand that if you can earn the profits into the stock market then it is equally probable that you can make the losses too.
6. Use Indicators
It is the technique used by the Intra day traders as well as the short term and long term traders which helps them to determine the trend of share and deciding which call should be taken. Share market is not a gambling. Indicators are the part of technical analysis based on the formulas. Learn the Indicators and before applying the indicator with real money, do paper trading to cross check that whether the indicator holds good for the stock selected by you or not.
7. Profits at higher side and losses at lower side
Common mistake done by the trader is they book their profits early and wait for the losses to decrease. If you are incurring losses in any trade then you should book the loss too. If you will just wait to decrease your losses without any analysis then your losses will increase and nothing else.
8. Go with the Trend of Market
Do not take the sell move if the market is bullish and do not take the buy move is market is bearish. Take your call with the help of indicators and analyse the impact of your move with the trend of market. If the indicators and market are suggesting the same move then it is highly probable that your move will be correct.
9. Avoid to trade in pre market session (9:00 AM to 09:15 AM), Let market settle
Generally traders think that, we take a call in early market session and till the time market settle, we will book our profits and move. And most of the time it has been seen that they incur huge losses. Let the market settle, Identify the support and resistence levels and then take your move. If you are just predicting the price then you came into market for gambling not trading.
10. Do not catch the falling knife
Suppose you have taken a buy call and the share price fall, then generally people buy more quantity at the lower price. If you are doing this than you are catching the falling knife. Accept you made a wrong call, book the Losses and wait for the next opportunity.
I hope this article help you to understand what market actually is and help you to grow your small demat account.
***Happy Trading***
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