It's acceptable to lose money intraday. How much can you afford to lose in an intraday transaction is the question.
More than 90% of intraday traders, commonly known as retail traders, trade with a capital of less than 1 lakh.
People who lose money in intraday trading do so because of unrealistic expectations and greed. I'll attempt to describe the attitude, but first try to comprehend this. Please consider the following question: Why do you trade?
Is it to supplement your income and pay part of your expenses?
Is it for the purpose of accumulating long-term wealth?
Do you want to make a living from your business? Now that you understand why you trade, you should set some achievable objectives. 1 lakh maintained in the bank or in a decent debt fund/bond may yield 10–12% annual returns. This is the safest return you can obtain.
A acceptable target here is to make 10% every month (well, it is possible), but will you be profitable every month? The conclusion is a strong NO. The biggest problem of intraday traders The issue is that if you make $2,000, you set a goal of $5,000; if you make $5,000, you set a goal of $10,000; if you make $5,000, you set a goal of $10,000; and so on. It is human nature to be greedy and not stop once a goal is accomplished.
What happens now is that after making 15–20k in profit, your profit starts to decline, say to $9k, and you begin to believe that you are already in profit, so why not attempt to recover? Meanwhile, $9k becomes $5k, and you are suddenly in the red!!!
From crimson to deep red, there is a transition.
You gradually turn red from green, and now that you are in profit, you refuse to acknowledge that you overtraded and have turned red. The rule of thumb is that the more you trade, the greater your chances of losing. Now that you've gone red, you'll do your hardest to recoup and execute more riskier trades, which is when the issue begins, and you may not be able to stop until you've lost all of your money. The cycle continues as you continue to acquire dollars and lose them, and you will soon realise you are trapped in debt. This is a significant problem that requires quick attention; you cannot continue to load money and lose; there is a problem with your trading technique, and you lack self-control.
My trading recommendations/rules
•Intraday trading should not exceed 1.5 lakhs.
•Do not blindly follow anybody, including myself.
•
Analysis is less critical than position sizing, risk management, and capital management.
How to Make Money
There is a straightforward formula. 80 is my age ( percentage of money should go in stock markets)
Because I am just 19 years old (80–19), I put 61% of my money in stock and the balance in gold, debt funds, and real estate.
All outstanding traders make money in positional stocks by transferring earnings from their intraday portfolio to their positional portfolio. Focus on timely fund withdrawals and take advantage of market dips like today's (3 percent drop on Budget Day 2020) to buy high-quality equities. Nobody can predict the market's peak or bottom, therefore if you want to purchase 100 stocks, buy 20 in a fall and wait for the following 5% decline to buy another 20.
Keep your head down and never forget how hard you worked for your money. When you have money, rather than when you don't, seek expert aid. Before I go any further, keep in mind that the stock market is not everything. Prioritize your health, family, and loved ones. They have no knowledge of your profits or losses, thus expressing your displeasure with them will not benefit you or them in any way.
Traders are savages... Self-heal... Build your confidence and trade with the appropriate attitude and psychology.... You are about to be crowned!!! I share my live trades on my free Telegram Channel you can track that on Dhasuu Stock https://t.me/dhansoostock