Currently, am just following news on ET & BS and do a lot of observation before taking position. But even then sometimes am incurring huge losses. Profits are comparatively low than losses. How to overcome this. Can you please advise me a methodology/strategy?
It would be very difficult for someone to just share a strategy. I would advice you to learn more about TA/FA etc and develop your one methodology to trade.
I am sure @Karthik means TA/FA as (Technical Analysis/Fundamental analysis).
I am also a wannabe Intraday Trader. Mainly I have planned to trade in NSE NIFY stocks (Those 226 securities which are also listed at FnO)
My strategy is filter NIFTY stocks, previous day Highest gainers/losers/volume based 50 traded, then filter 10 most positively trending on that particular day based on trend/news/events data, and then again filter 5 of them, do some TA/FA on them.
And then finally trade on maximum 2-3 stocks spreading your capital as per risk involved with each script.
Seniors here vouch for my above strategy and can suggest rectification pointers.
Though I have not started to trade yet, still researching. :)
Few of the points I have learnt from my research to become a skilled Intraday trader, and the Risk/Mistakes involved in intraday trading, few are listed below.
1. Ignoring the trend, and trading on your gut feeling.
2. Trading too many stocks, too many times at the same time.
3. Not planning your trade before hand, ie -no entry exit points decided in your head based on trend and available data, and instead let greed drive your trade.
4. Trying to milk too much on a single day/single trade.
5. Trying to bite more then you can chew. ie- taking too much leverage, un-proportional to your risk management ability.
6. Not accepting honestly and timely that you can not WIN ALL trades.
7. Instead of focusing on the winning "trade-in-hand", wandering in market/software to find stocks which can give you MORE profit.
These are few mistakes one can avoid and yes the TE/FE is important too.
Regards
RK
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