InvestorQ : What are the important things that an intraday trader needs to take care of while actually trading in the markets?
Bhavik Nehru made post

What are the important things that an intraday trader needs to take care of while actually trading in the markets?

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Bhavik Nehru answered.
3 years ago
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A lot of the job of an intraday trader may appear to be routine but it is worth the while. Record your wins and your losses and evaluate them at the end of the day. This may sound pedestrian and clerical but extremely important. It will help you in the long run. Keep a tab of trades that went wrong and those that went right. Keep a scrap book to analyze what you did wrong and what you could have done better. It will really help you in becoming a better trader. After all, if you have to grow as an intraday trader, you must avoid committing the same mistakes again and again. Averaging your trades is the cardinal sin in intraday trading. It is quite common to buy more of a stock when it corrects. Don’t try that as it impairs your capital without any benefit. Averaging is wrong for two reasons. Firstly, you are running the risk of being wrong twice. You were already wrong once and you are just repeating your mistake all over again. Secondly, you might increase your exposure to a particular stock more than warranted. That could also put your capital at greater risk. What is perhaps most important for you is to learn how to catch the momentum and learn to evaluate F&O data. Intraday trading is all about being on the right side of momentum and there is absolutely no point in trying to outsmart the market. The market will always be smarter than you. F&O data points like open interest, option strike accumulation, IVs; Put Call Ratios are all important indicators for intraday trading. There is no golden rule and only practice makes you a good intraday trader. Last, but not the least, the golden rule of intraday trading is that there is not golden rule. It is essentially an activity that calls for discipline and risk management and will only be perfected over time. Remember the great geometrician, Euclid who famously wrote, “There is no royal road to Geometry”. That applies to intraday trading as well in large measure.

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