Losing is the best way to learn from your mistakes, and that experience gives you the perspective and a clear understanding of trading psychology. Many people who start trading, almost immediately quit trading after they come close to losing their entire capital; some even lose the entirety of their fund. If you want to avoid that, go slow, real-dead-slow, like a 🐢 turtle.

for example; If you have a capital 💰 of 1 Lakh Rupee, allocate 50% of it to an emergency/backup fund. And use 30% of the remaining for your everyday trading and keep the last 20% as a free-floating-fund; Try not to use the whole 30% of your trading-fund. Use only 20 or 25% of it. When you start making profits, withdraw only those profits to your bank account; remember it's crucial to maintain the allocated reserves; otherwise you will lose your way.

💡 It's just an example of managing risk, so based on your risk appetite, adjust your fund reserves.

My Top 6 Golden Rules To Make Consistent Profits in Stock Market Intraday Trading.

  1. Always maintain  a stop-loss; don't lose more than you can afford.
  2. Only trade in trends. Avoid sideways markets at all costs.
  3. Never trade against the trend, even if the volume says otherwise.
  4. Use scanners to find and pick bearish or bullish stocks.
  5. Patience 🧘; If you pick the right entry with RSI or Fibonacci or whatever indicator works for you, it helps you not to worry too much about the stop-loss.
  6. Don't be greedy; take profit when you can. Pick multiple target prices, if you expect more profit, use the trailing-stop-loss or trailing-take-profit feature.

Finally, calculate your Net-profit and make sure it matches the broker balance sheet.

If you are a beginner, I would suggest starting with shorting bearish stocks, it has a high chance of profitability for beginners.

👉 Click to Learn the basics for free at Zerodha Varsity

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