InvestorQ : Are there are some good intraday trading tricks that you can pass on to me?
Bhavik Nehru made post

Are there are some good intraday trading tricks that you can pass on to me?

Bhavik Nehru answered.
3 years ago

So, what are the intraday trading tricks for good returns? Let us look at some interesting home truths that can help you make a success of intraday trading. Firstly, avoid trading in the midst of a volatile market. That is the cardinal rule. You don’t need a lacklustre market but Intraday trading is best done when the direction and momentum of the market is predictable. Otherwise you could end up spending more time triggering stop losses. The second trick in intraday trading is all about protecting capital. Firstly, focus on how much loss you are willing to take overall and on a per trade basis. Once you can protect your capital from depleting beyond a point, intraday profits will automatically follow. The third trick is that you should never trade intraday without a stop loss. Remember, stop losses are required in most trades but in intraday trading it is an absolute must. Not just stop loss you must also have a profit target. This stop loss can be based on technicals or affordability but you cannot enter into a trade without a stop loss. In the absence of stop losses you may end up holding positions with unmanageable MTM losses. Last, but not the least, decide your profit target based on our risk-return trade off. What is a risk return trade-off? It is the return that you expect per unit of risk. Stop loss is one side of the story; the other side is you also need to take profits. Let your profit targets be a multiple of your stop loss. A trade-off of 3:1 or 2:1 is understandable, not 1:1. After all, profit is what you actually book; everything else is just book profits.