InvestorQ : Do you have a negative list of things I should strictly avoid when trading intraday?
Mahil Khan made post

Do you have a negative list of things I should strictly avoid when trading intraday?

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sara Kunju answered.
3 years ago
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Doing right is important but not doing the wrong thing is equally important. When trading stocks and futures intraday it is also important to know what you should not do. As a smart intraday trader, there are 3 things you must always avoid in your own larger interest.
Never trade without a stop loss and a profit target. The stop loss must be put at the time of placing the order itself. Stop loss can never be an afterthought. It does not work that way and in your own interest and in the interest of your precious capital you must put stop loss at the time of order initiation itself. Don’t wait to observe the market and then put the stop loss; volatility can shake you up quite fast. We have seen such things happen before and they will repeat time and again. Avoid the temptation to average your positions when the market price goes against you. There is no point in being wrong twice.
The market is the king and you must have the humility to acknowledge that. After all, the market reflects the median thinking of the market better than anyone else. The rule here is to never trade against the market momentum. When the undertone of the market is positive, you can opt to buy the rally or buy on dips. But trying to outsmart the market by taking a contrarian view is a recipe for losing money in intraday trading.
Intraday trading is all about risk management. Know what you can afford to lose and know what you are willing to lose. That is the basis of intraday trading. Never trade more than you can lose. Hope is a good breakfast but a bad supper. Be clear on the loss you are willing to take on a daily basis and on an overall basis. Above all discipline is the key to respect the stop loss levels. Once that level is triggered, have the discipline to shut down your trading terminal and go back to the drawing board to rethink your intraday trading plan. Unless you have the discipline and if you try to dabble on a daily basis, you cannot be successful in intraday trading.
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