InvestorQ : How important is managing risk when it comes to intraday trading?
Dawn Cherian made post

How important is managing risk when it comes to intraday trading?

NISHA Nayak answered.
3 years ago
The first and foremost objective of any day trader is to prevent losses and protect profits. Everything else follows after that. If you can protect your risk smartly, then returns will follow. The most important trait of an Intraday Trader is to follow a disciplined approach. Once you achieve the daily target, learn to just close out your trade for the day even if it’s too early. Once you have closed the trade, don’t sit and worry about the profits that you missed out. It’s quite tempting to earn more profit and initiate fresh trade but always remember that you missed the pulse of the trade. You can catch the pulse only during the initial few minutes of the trade. After that, the trade becomes just too crowded.
On the contrary, if a trader gets wrong calls then have the heart to quite for the day. Some days are just not your day and you must admit that and walk out. Start afresh tomorrow. A disciplined approach can help you earn a decent living from Intraday Trading. On the other hand, the ad-hoc approach may land you in big trouble. No one is perfect in this approach, but time & experience teach a lot of lessons. Traders who learn from their mistakes can earn and that explains why the attrition rate is so high among intraday traders.