InvestorQ : Ideally, how many intraday positions can I keep open at any time?
Bhavik Nehru made post

Ideally, how many intraday positions can I keep open at any time?

Bhavik Nehru answered.
3 years ago

You can keep as many as you can handle but you have to be practical. Human mind is not designed to simultaneously handle tens of positions. Don’t keep too many positions open at any point of time. Once a position is closed you can look at fresh positions. This is the fundamental mistake many intraday traders make. When you have numerous positions open you are not able to do justice to all these positions as you can only track a limited number of positions in terms of fundamentals, charts and news flows. If you keep too many intraday positions open, you are likely to overlook some of them resulting in losses. Ideally, let your open positions not be more than 4-5 at any point of time. But, there is no sanctity to this number. If you can really handle, you can also go up to 7-8 positions but ideally don’t go beyond that. Your bandwidth may not allow you for so many positions and you may end up making some rash decisions in the process. So be cautious.

There is another important aspect to monitoring positions which is doing nothing when the market is getting to confusing or confounding. If market is too confusing, just do nothing and don’t feel guilty about it. Not doing anything is also an intraday strategy. In intraday trading, there are 3 basic strategies viz. buying, selling and doing nothing. It sounds ironical but quite often you really make money in intraday trading by doing nothing. What it means is that when the market gets too confusing, it is best to stay out of the market rather than try to fish in troubled waters. That way you will keep liquidity available when better opportunities present.