There are no items in your cart
Add More
Add More
Item Details | Price |
---|
It takes some time to build profitable businesses.
And when you plan to invest your money in any business you should always have a long term view.
Investing in the stock market is nothing but investing in others businesses.
So, expecting any miracle out of your investment in stocks within days, weeks or month is fictitious.
One should not expect more than 15% return from stocks investments and let the money compound at this rate for next 10-15 years.
But, there are people who have done well for themselves in the world of stocks trading as well.
And one of the trading method which they have applied is "Intraday Trading". In intraday trading, one person trade on a daily basis where he buy first and sell later on the same day. Or he can sell first and buy later at lower price for the profit.
"Intraday Trading" help one trader compound his money on a daily basis.
But, a lot of people lose and burn their fingers doing Intraday Trading.
In this article, we are going to discuss about intraday trading. Step by step. It's pros and cons both.
1. What is the source for profitable opportunities in trading?
BEFOR UNDERSTANDING "INTRADAY TRADING" , LETS UNDERSTAND "TRADING" FIRST.
Ideally, market is perfect. Everyone have same information. So, how does opportunities get created for a trader.
To understand this, we need to understand our decision making system.
Almost, all of us don't make a rational (logical) decision most of the time.
Many of the time, we make decision based on our behaviour.
Our beliefs and biases shape our behaviour.
E.g. - If I work hard and stay focussed, I will be successful one day. It is my belief.
When I fail, I start blaming my luck, It is my bias.
Also, we all have limited self control.
So, weaker belief in the stock market, strong biases and lack of investors self-control bring volatility in the market and create opportunities for traders.
It gives sometime opportunity in short term and sometime these opportunities exist for months and years.
All we need to do is find those gaps, trends and opportunities being created due to behavioural issues of market participants.
2. All the top reasons for losses in intraday trading.
YES A LOT MANY PEOPLE ON DAILY BASIS LOSE THEIR HARD-EARNED MONEY IN INTRADAY TRADING. I HAVE LISTED THEM HERE.
3. Let's understand the ingredients for a successful intraday trading recipe:-
4. Last but not the least piece of this comprehensive analysis ON INTRADAY TRADING.
Many people think that success in Intraday Trading is based on luck.
So, it is important to understand this luck factor.
First, ask yourself this question - is there anything like good luck or bad luck?
And you think hard, you may get dubious. It seems, there is no answer for this.
But, behavioural finance stream has a research based answer for this.
And it is defined as a bias in behavioural finance.
It says, when we achieve something good, we give credit to our skills and hard work.
But, every time something wrong happens to us, we blame our bad for the same.
And so does this happens in intraday trading as well.
When people make small gains, they think they have talent and skill.
But when they make losses, instead of working on enhancing the skills they start assuming that they got bad luck in trading.
They don't learn from those mistakes.
They don't try to find a better trading strategy and invest time in learning. Instead they start blaming their luck.
And it is a kind of bias which we have built in different aspect of our life.
It is called self-serving bias.
And, it hinders our growth. It stops us from acquiring new skills.
I strongly feel, if someone wants to succeed in Intraday Trading, he has to remove the self-serving bias and work on skill-building and stop believing in luck factor.
Get mentorship for Intraday trading:- Click here to apply
kundan kishor
Curator - A complete course on Indian Stock market.