The volume of participation is increasing in intraday trading. Due to a lack of knowledge, many people lose their money in intraday trading. Let’s see, what is Intraday trading and know all thing about intraday trading to gain profit.
What is intraday trading?
Intraday trading is the buying and selling of shares, stocks, or other financial instruments within the same day, It is also known as Day trading. It means all positions we have to square-off before the market closes without changing the ownership.
Day trading ends on the same day. If you fail to do that, Your broker will square-off it on your behalf. It is most popular among the youngest generation. It comes in high risk, high returns, and almost all brokers allow doing day trading.
Basics of intraday trading
In the beginning, the day trading is done by people like those who are working for a big institution, brokerages, and trading houses. But nowadays, due to the rise of the internet and online platform become easier to do day trading.
The success in intraday trading can get only by knowledge. If you have knowledge about it then also you will gain profit in day trading. If you do not have any knowledge then you can get it by reading the article.
Is Intraday trading good or not for beginners in the stock market?
If you are a beginner in the stock market and trying to do day trading. My advice to beginner, Don’t enter in the day trading because it is very risky and according to mini invest servery, 90% of Beginners lose their money in day trading due to lack of knowledge.
I recommend you that get knowledge about day trading and then also enter in it. After that you will able to gain profit in it.
Without knowledge entering in the day trading means you are just doing gambling. As we all know in gambling in the end we can lose our all money in it. We did not recommend doing day trading without knowledge.
Avoid these common mistakes to gain profit in intraday trading
I have saw that many people are doing same mistakes in day trading. I have given the common mistakes that do people in day trading. You should avoid these common mistake to gain profit.
1) Lack of knowledge of chargers and brokerages.
Many people don’t know, trade contents chargers and brokerage. Without knowledge of it, no one can gain profit in the day trading. This is one of the important factors, But people are not aware of it.
Lack of knowledge can be risky for you. Many people doing intraday trading and exiting their trade-in low profit it can be turned into no profit. Because of every trade content chargers and brokerage. To avoid loss in the day trading then you should know the chargers and brokerage.
The chargers is depend on your country and the Brokerage is depend on the Broker that you haven chosen. You should be aware of it, Get knowledge on google.
2) Trading on low Probability
Trading on low probability means “winning chance is low“. It is very bad if you are also doing same type of trading.
Build your own trading strategy and check that the winning ratio should be high from the loss ratio. Also, maintain the risk-reward ratio. Experts say that the risk-reward ratio should be 1:2 and 1:3. But according to me, Please maintain a 1:2 ratio or 1:1.5 ratio.
Following the above ratio will turn your losses into profit at the end of the week or month. This makes common mistakes in intraday trading. So, If you are also doing the same mistake then avoid it and turn your losses into profit.
3) Not doing planning of trade before entering in it.
Many people i saw that they not plans the trade and enter in it. Choose a random stock and trade in it with close eye and the result of that is making losses.
Not doing planning of trade then it can be very risky. Be safe from it and do plan before entering it. This comes in common mistakes in intraday trading. So, If you want to do day trading then avoid this mistake.
Planning can save you by doing big losses in day trading. I hope you will not do this mistake.
4) Trading in illiquidity stocks.
Trading in illiquidity stocks is a mistake which beginner traders do. illiquidity stocks means, “the volume participation of people is low“.
It is an outcome of lack of research in trade. It is important to understand, volume of a stock or its liquidity plays a very important role in day trading.
If you trading in illiquidity stocks means you cannot enter to exit your position on time and at the planned place. So, It is important to choose the liquidity stocks for intraday trading. This comes in common mistakes in intraday trading which mainly done by beginner traders.
So, If you are also doing this mistake or beginner in day trading then avoid this mistakes. It will help you to gain profit.
5) Trading on rumors and news without planning.
Many people I personally saw, Who trade on the news basics thing this is positive or negative news and the market can go according to it. Please avoid this type of trading, This can be very risky.
First, do the planning of trade and then check, What is the market view or stand. According to it, You can trade. But, If you trade according to your mind then it can be risky trade for you.
I think it will help you to take a profitable trade and it can be very rewardable also.
6) Trading on other tips.
Are you doing day trading on other’s tips then you are losing money in trading? Because They give you tips but you have not the knowledge of entering or exiting place of trade that’s the reason for losing money. If it is right then comment below.
Many people I have saw which are taking tips from others and losing money in intraday trading and telling them due to your tip I have entered in this trade and lost my money. But, in reality, that was your mistake and it happens due to the lack of knowledge.
So, If you are also doing same mistake or beginner in day trading then avoid this common mistakes in intraday trading to gain profit.
7) Failing to put stop loss
Not putting stop loss means you are taking big risk and you cannot control your risk. This comes in common mistakes in intraday trading.
One of the most common mistakes in intraday trading due to which you can lose money in stock markets is not placing a stop loss on their trades. A stop-loss order is an order where you instruct your broker to sell purchased security when the prices start going down instead of up.
This helps you in limiting the loss. Most traders commit the mistake of not placing a stop-loss order hoping that the price would reverse and move in the desired direction. Not just beginners, but even seasoned traders make this mistake of not closing their position in time with limited loss and instead end up incurring a huge loss.
8) Failing to plan the target for the position.
Experts says plan your enter and exit place before entering in the trade it will help you to exit your trade at right place.
The person who plans their target and enter point they have their control over their trade. Because If you plan before entering then you should not ware about your trade. This will give you positive energy.
So, If you are not planning the target for your trade then don’t do this mistake again. These are common mistakes in intraday trading and many people are confused while exiting the trade.
If you want to know in detail then check this article, Avoid these 15 common mistakes in intraday trading to profit.
Is intraday trading is profitable or not?
Yes, Intraday trading can be profitable only in one condition that you should have proper knowledge. To gain profit in day trading avoid these common mistakes.
Mainly it is depend on knowledge. However, Doing day trading without knowledge means just doing gambling. So, Be away from it, If you don’t have knowledge about it.
Last word from mini invest
I hope you have got detailed knowledge about intraday trading. If you have any recommendations or feedback then you can leave it in the comment box below.