This is the query I received from a fellow trader today. Hi, I am new to trading, started just a month ago. But being a beginner I made a mistake of playing intraday that too with 1000 stocks today. I lost 1900 in Allahabad bank and 3750 in Bank of Baroda. Both were in uptrend in morning, when I bought BOB was 189 and ALBK was 192. I was expecting just 0.5 points increase but they went down and never reached my target. When I bought I was not able to decide the trend, can you please tell me on what basis we have to pick stocks? when to enter and when to exit in intraday? I am sorry if I am bothering you, but I feel inputs from experienced people like you helps me in future. Here is my answer : Your question itself contains the answer you need. A beginner should always start trading with less quantity. Whenever I plan my trade with risk : reward ratio as 1:1 or 1:2, my trading mentor ask me this question "Are you a trader?" . Till now I get same question from my trading mentor some times. The point is keeping risk : reward ratio in a balanced way comes with experience. You are saying "I just expected 0.5 points". For 0.5 points why should you enter a trade? That is not advisable. Dont enter a trade when you cant find the trend. When you cant find the trend, it means you are confused. A trader should be very clear during trading. It also comes by experience only. Stock selection should be based on movement and volume of the stock. There is no timing for entry, exit in intraday. You can enter, exit when the price moves as per your "trading set up" or "trading plan". Learn about trading before entering in to the trading field.
Comments
UnknownUnicorn646072
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for postional trade required 5 years learning and intraday 10 years learning
vanathi
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@rupambose32, Are you saying positional trade is easy than intraday?
@rupambose32, Most people start their trading career as intraday trader as it looks attractive when seen as an outsider.
UnknownUnicorn646072
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@vanathi,every 1000000 people 1 is sucessful who came back home with profit in intraday,who begin his trading without knowledge,and do day trade lost all his capital
vanathi
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@rupambose32, I have seen people losing money in commodities as day traders. In equities atleast they survive.
UnknownUnicorn646072
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@vanathi, more profit in commodities,if one know the trend in few time
vanathi
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@rupambose32, more loss in commodities if one didnt know the trend. And its tough for new traders to find the trend.