Regarding intraday trading


#1

Hi people, in initial stages I am able to make profits in intraday trading, but my profits are turning into losses due to my greediness,
It mainly happens in each specific trade,
When I am getting profit in specific trade, I wait for more and at last it goes into a negative trade…
Kindly provide me few tips to get out of it…


#2

Plan your entry and exits before taking a trade. If your exit of a trade is basis profits, and you don’t define how much profit, you will continue to hold on to the trade.


#3

Thanks a lot @nithin
A great advice indeed which I never followed before, will surely apply from my next trades…
Actually the trades I done until now, I never had kept a exit value, that’s one of the greatest mistake I had done…
Thanks for the eye opener tip…


#4

Yes, plan your trades - Entry, Target, Stop loss and then do trade the plan. The most difficult part is to follow the exits planned while keeping hope & fear at bay.


#5

@iSTFF
i am doing a big mistake in stop loss also,
since sometimes even though trade goes in opposite direction, it comes back to normal levels and reach good profits, so many times i used for this situation and it moves further in opposite direction without turning positive and gives me big losses…


#6

well @iSTFF @nithin
i too have a loss fear, how to overcome it and build my self confidence in day trading…
will i learn these things through experience and days goes on…


#8

Had a very interesting conversation with Jack Schwager , hear it out. A lot of interesting things he said, his market wizards book has to be the most important book a trader needs to read.

Couple of things to the point on this thread, if you are trading to put food on table, you are unnecessarily putting too much stress on yourself. Do something to have an alternate source of income. Also, try to not lose more than 1% of your capital on a trade and don’t risk too much of your personal capital on trading.

After interacting with many, I think the biggest problem is traders wanting to make up for previous losses by trading bigger as the account size goes smaller. This is a wishful but sureshot way of going down. Maybe take a break to get your head straight or reduce trading size when making losses. Once you have accepted the loss and not trying to do a heroic comeback, and looking at starting afresh, maybe then is a good time…


#9

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#10

Thats very nice of you Nithin. Do keep sharing such experiences with all of us.


#11

@VigeVet ; never do intraday trading .in the long run or even if you do working of one year you will not earn .


#12

I have a doubt here if anybody can clear that up !

if i short xyz share at 850 ( Mis not bracket order ) i want to trail the profit below 845 !

what orders should i execute ?


#13

FIrstly don’t wait for more profit, If your profit covers brokerage cost, tax, etc and gives you enough profit then cut the position.
Don’t over trade.
Earn little everday.
Don’t be greedy.


#14

What you mentioned is perfectly normal. Any trader who trades regularly must has encountered these situations, as have I. The problem is that as humans we have been brought up (conditioned is the right word) with the importance of “Hope”. In our life we face difficult situations, fall and then hope acts as a driving force allowing us mentally to stand up again and fight back and overcome the difficult situation. In real life hope is very necessary. Once we start trading, we start to act on the basis of how we are conditioned, and therefore hope kicks in too, especially when a positions is going against us. This hope that things might turn around soon is a dangerous thing in the world of trading! In the “realm” of the markets, “Efforts/Action ==> Results or Some Result” Does not work! Markets have an inherent element of Randomness especially in the short term. So how does one deal with the Market? Play the game of probabilities with it. How does one do that? Plan an Entry, Target and Exit for a trade AND keep Target at least 2 times that of the Stop Loss. So if your Target hits then then you make 2X and if your Stop loss hits you lose 1X. Now if Market is Random then Winners & Losers will be somewhat equal in number when you trade of a good number of times. So essentially, Win & Lose equal number of times AND Winner twice as large as a Loser, Result ==> Net Profit. But to make all this happen you have to take Stop Loss and Target Exits as exactly planned! If the Mind tricks you into “Hoping for a turnaround when position is getting in loss zone” then tell the Mind “In the realm of Markets Hope does’nt work only Trading Plan will work in the long term”.
Are all these just theory and smart chatter? Well, my personal experience says it’s not just theory, someone else may differ!


#15

@iSTFF
Thanks a lot…
As u said, we should not have hope in trading, every time we hope, money goes as twice as we hope…


#16

@nithin @iSTFF
can we able to find out and keep the stop loss by seeing the flow of the chart, can we able to calculate or guess the flow of chart upwards or downwards moment of a stock


#17

In some trading strategies Stop Loss can be moved in the favourable direction when the trader intends to capture higher target levels if the instrument is trending well… It all depends on the trading plan. But never move Stop Loss in the larger Loss direction because most likely then you are yielding to the “hope” conditioning.


#18

Book partial profit use stop loss trail continue … 1% profit in interday try to quite trading for the same day … .5% loss stop trading for the same day … Habit it …


#19

@podderdipak @iSTFF @divyanshisharma @sabkaview @nithin
can i use bracket orders for inraday, does it executes immediately after the target price/ stop loss is reached, or will it delay or kept the orders pending even though i reached the levels.


#20

It will execute immediately subject to availability of the Buyer/Seller


#21

Bracket order only executed target price i.e. immediately but yes for the same its follow queue