Intraday trading and their facts
Intraday trading and their facts: First question in mind what is intraday trading, and to work or trade. From the Indian security market exchange in India, there are three exchanges one is NSE( national stock exchange) and BSE (Bombay stock exchange), and the third MCX( multi-commodity exchange).
So the NSE, BSE, MCX, offer to trade a daily basis, means when the market opens every trader buys or sells the stock and commodity and exits on the same day before the closing of the market. This type of trading is known as day trading or intraday trading. In the stock market, intraday trading gives the facility to sell any of the stock and buy on the same day.
In the Indian market for intraday trading, we need a trading account, this type of trading account name is a d-mat account( digital metalize account). The d-mat account is directly connected to our bank account. The best thing about a d-mat account is we directly pay in and pay out money from bank account to the d-mat account. The d- mat account has the facility to withdraw the money in one or two days directly to the bank account.
Intraday trading facts:
It is a very true 90 % commodity or equity day traders are in loss and only 10 % of people make money in this market. There are several reasons why day traders do not make money in intraday trading. Example grid and fear of the market, proper money management, proper trading discipline, etc.
In this book, we are going to study how to become a perfect intraday trader and how we follow all the rules.
Intraday trading story: In the intraday trading story here I was explaining to you how I am facing problems in intraday trading markets, when I trade-in equity intraday, every day I make new strategies and apply them and at the end of the day my account closes in the form of losses. I have huge losses when I start intraday trading as a beginner. I was researching a lot of technical analysis and fundamental analysis, lots of paper trade & real-time trade. But unfortunately, I have losses in day trading.
What kind of mistake I always make in my intraday trading.
- My intraday accuracy is almost 80% but my trading account is always overall loss. Just because I have no proper money management. Example. if i do 10 trades in a week, and my profit every trade is 1000 rs so if my accuracy is 80% so my profit is 8000rs. But in only 2 trades I lose more money as compared to my profit. my losses increase up to 20000to 50000 rs. In this, we learn how to manage money and do every trade successfully.
- Proper risk-reward management: I have no idea how to manage risk and reward, I simply follow trading rules for buying and selling stocks and commodities. But again I am facing a loss overall, when I have 1 % or 2% profit I book my profit earlier and exit my position, but when I have a loss I keep my position and wait for my position to return at profit and this is the reason sometimes I have a huge loss in the intraday market.
- Proper discipline: in the intraday market, the discipline is playing a very important role, for example, if you do not follow discipline like when your target hit or SL hit but you never exit on target and stop-loss, at that time chances to exit the position in a big loss. So in intraday trading, it is very important to follow discipline in trading.
- Don't trade on fake news and SMS. These fake news sometimes harm your hard-earned money capital.
- Don't over trade, some time overtrading is the only cause of losses. As my personal experience for recovering my losses, I lose more money in the market or I paid more brokerage into the brokers. Overtrade is always the cause of paying high brokerage to the brokers.
Intraday trading risk reward ratio:
Here in this topic, we learn a lot about the risk and reward ratio of the intraday market. So let's start with an example.
For example, we have coin and we tossed up the coin so the result will be head or tell, means to the probability of accuracy is 50% similarly in the market if we make position so the probability of winning or losing is 50%
Best intraday strategy
for continuous results in the stock or commodity markets, we always need to follow some money management rules like proper target stop-loss or fix the amount of investment regularly.
here we discuss the best strategy in this blog.
for example, any intraday trader has an intraday investment around 20,000/.. and he uses 5 time limit for day trading, so he trades with a capital of intraday around 100000/.. now for example he purchases intraday reliance industry share with a price of 2000 rs/ per share.
so he buy intraday total share 50 shares. so as per our strategy he needs to always follow 1:2 stop loss and target so he will get a good result at the end of the month
here below I share a 1:2 ratio profit loss true report of Maruti Suzuki share with proper target and stop loss.
In the above table showing the profit loss report of Maruti stock in intraday trading. the total intraday profit in a month around 8000/.. rs. almost 40% of the total investment in a month.
in the above table for making buy and sell decisions we use wwap indicators. and buy or sell stock at a fixed time morning at 10.00 a.m. so in this strategy the risk-reward ratio is 1:2 which is a fix for all trade.
the target stop loss also fixes intraday investment also fix.
for detailed about strategy
contact us.
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2 Comments
Online trading is becoming more and more common nowadays, and it makes perfect sense to follow tried and tested strategies to reduce loss and increase profit margins. Learning about the intricacies of market is essential to go in the long run. Thank you for sharing this informative article. DT4X Trader
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