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Intraday trading is often perceived to be linked to a high level of risk. This is understandable given that traders are expected to buy and sell in large volumes within a single trading day. Moreover, gains aren’t ordinarily scored from a single trade alone. Instead, intraday traders are expected to be diligent and must hunt for the right trends to follow in the market. These trends can be found with the aid of technical analysis. Keep reading to learn about the mistake to avoid during intraday trading.

Intraday Trading Traps to Avoid

Listed below are 3 mistakes you must avoid making while intraday trading.

1. Don’t Put All Your Eggs in One Basket

One of the primary rules to keep in mind when practicing intraday trading is to determine the maximum amount of money that you’re willing to lose within a single trade, a trading day and on your capital in its entirety. Additionally, you need to minimize your exposure to risk. If you spend too much of your capital on a limited number of trades, you expose yourself to the risk of losing a significant chunk of your money. 

2. Don’t Dismiss Trade Structure

A crucial element of intraday trading rests on an understanding of trade structure. This means that you must be aware of the history, corporate announcements, news, and price trajectory of a stock. Knowledge of its support and resistance are also key. Without this knowledge, you stand the risk of not making a profit while doing intraday trading. This however, does not imply that you rely on other people’s tips. Instead, focus on creating your own charts and learn to make trades on your own in order to succeed.

3. Keep your Emotions in Check

In order to truly master intraday trading - or any other form of trading for that matter, you must be in control of your emotions. Your decisions must be governed by logic alone. Although its normal to experience feelings of fear and greed, should they govern your decision making, it can be highly detrimental.

Viable Tools for the Savvy Trader

Angel One is aware of the pitfalls that intraday trading can give way to if you don’t proceed with caution. Keeping this in mind, it has set up two educational resources - Knowledge Centre and Smart Money¹, on its website. Each of these is geared towards imparting valuable trading and investing insights. Each of these portals gives you the tools, skills and information that’s needed to make wise trading decisions.

Simply put, this website serves as a one-stop shop for all your financial needs. Should you wish to supercharge this experience, you can always download Angel One’s smartphone application. This app is easy to navigate and allows you to have a hassle-free trading experience. 

Exploring the Merits of Smart Money

By reading through Smart Money modules on intraday trading you can learn how to carry out successful trades. Information is split into modules that beginners, as well as seasoned traders, can use. Topics covered range from trading strategies to the statistics of risk. By enlisting for any of the stock market courses for traders, you get to avail of a certificate of recognition. Additionally, you also receive trading money that’s in line with the website’s terms and conditions.

Final Thoughts

Keep in mind the mistakes mentioned above and avoid making them to succeed at intraday trading. In order to hone your skills, visit the Angel One website and use the Smart Money resource such that you can enhance your knowledge and capabilities.

Disclaimer

¹Smart Money is not an exchange approved product and any dispute related to this will not be dealt on exchange platform

²This blog is exclusively for educational purpose

³Investments in securities market are subject to market risk, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. https://bit.ly/2VBt5c5

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