i am making a loss in intraday and need the advice on the following. the questions are general in trading life but are critical in approach:
which website do you visit before taking intraday trade?
what are the average trade time for you?
what is the strategy to know the price direction?
do you apply bracket order or not apply any stop loss in your intraday trade?
when you get to know, this is the time to cut losses if the trade is going in wrong direction (do you wait whole day watching the price to come to your desired level)
Hello @smartinvestor
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1. My watchlist is all I use. I follow a set of stocks and learn to trade in these stocks. My watchlist eventually came down to just 4 stocks.
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2. There is no such thing as average trade time. I look for patterns and I take a trade whenever one of the patterns shows up in the chart. Once I enter a trade, my exit is very quick.
If the pattern shows up at 9.50am, then I enter a trade at 9.50am. After that, I don’t do anything until I see another pattern pop up in the chart. If the next patters comes up at 2.50pm, then that’s when I take my next trade.
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3. VWAP is a great indicator to learn about intraday trends and direction. You can read more about it here.
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4. For those who know what they are doing and how much money they wish to make in each trade, Bracket Order is a great tool. It allows you to define what your target is even before you take the trade. A stoploss comes in handy as well.
If you are testing out trading strategies, then you can trade small quantities in MIS and keep a notional stoploss in your mind. Check your efficiency this way.
- 5. You should never take a trade when you don’t understand what is happening. You can maybe take a test trade with a very small quantity when you don’t know what’s happening as you would start observing more keenly.
If you are on a loss trade, then it is safe to say you must cut your position when you are not comfortable with your loss. I would say a loss more than 5% of the trading capital is a good time to cut your loss unless you have proof that your position will reverse and you can reduce losses. Actually no, you can just cut it. The market will always open again tomorrow morning. And you should have enough funds to come participate again.
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thanks for your detailed description and support.
happy trading to you.
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Please read Trading for a Living by Dr. Alexander Elder