InvestorQ : Are there any golden rules that we can religiously follow for intraday trading?
Abhisha Yadav made post

Are there any golden rules that we can religiously follow for intraday trading?

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Abhisha Yadav answered.
3 years ago
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Firstly, always remember that trend is your friend and you are trend’s friend. As an intraday trader, never think otherwise. This is almost a canon for intraday traders. Bottom-fishing and contrarian trades are not for intraday traders. Market is the king and it is your job to stay as close and as much in sync with the market trend as possible. Period!

Never bet your bottom dollar or your last penny on any trade. You need to understand and manage risk effectively. Intraday trading is risky business and you need to be clear on how much you are willing to lose. With your best of ideas and execution, you can go wrong. Only bet so much money that you can afford to lose. Don’t lose your shirt in the process.

Don’t get carried away by your daily returns. 2% return in a day does not mean 500% returns in a year. If it worked that way then the stock market would be a much easier place to make money. This has two implications. Firstly, don’t be too greedy. Earning even 2% in a day is great. Secondly, don’t try to extrapolate today’s results to tomorrow. 2% return in a day does not mean 50% returns in a month or 500% in a year. That’s ridiculous! As Livermore put it eloquently, “There is nothing new in intraday trading. What has happened in the past will happen again and again”

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