A simple method to learn Intraday and learn/ improve risk management
Thanks @Rajesh_K1 for the lessons
Select any 1 good stock you like.
- the stock you choose should be very liquid and whose movment has less wicks and moves in tendem with Index nifty. ( try to choose any one from nifty 50 bucket)
- only trade in this stock with only 1 quantity, this will eliminate you fear for loss and excitement for profit because the amount will be very small and insignificant.
- lean the price movment with volume and in different scenarios.
Example: how stock or price behave after a big move,
How it move during choppy days
When in consolidation how it moves etc. - Trade in this stock with 1 quantity till you start turning wining 7 out of 10 trades in a day and say atleast 16 days in profit out of 22 trading days in month.
- When you start winning for 16 days in a month, then refine it further where say for every 10 rs your profit is 7 against loss of 3.
- When you successfully achieve till point 5 then start doubling your stock quantity every month.
- And most important, be honest with your strategy and trading.
Remember trade will come back again next day, your money will not.
So don’t lose it.
refer : Intraday loss- need suggestions - #11 by Rajesh_K1
My Experience
I had been trading intraday earlier. In fact, I was trading Ambuja Cement when the 2023 Hindenburg report news came out and took a sudden loss. I was shocked. That experience made me stop intraday trading. My stop-loss and risk management weren’t right, so I decided to switch to ETFs instead. Now, I only focus on swing, positional, and long-term trades.
I’ll definitely try this method to improve my risk management strategy and continue learning.