Rules for discipline trader.

I am going to share Manushi Bhatia's trading rules for discipline trader. Which she follows since last 7 years.

Hello Traders,

As we all know Intraday trading is highly risky for various reasons firstly, intraday trading operates within the window of five hours and the position needs to be closed out within that period. Secondly, much volatility works against intraday traders. It is much easier to trade a stable stock compared to a volatile stock as stock losses can get triggered quite rapidly in the case of volatile stocks. Thirdly, intraday trading also risks capital erosion as you trade with finite capital. Capital erosion impacts your funds and the total leverage you will be permitted to take.

It would help if you started learning some basic things which can help you to earn in intraday trading. As I already mentioned in my previous answers related to intraday trading, intraday trading has a higher risk factor than other trading options So we have to be more careful while doing intraday trading. So I am sharing some points as per my own experience and from the guidance of my investment advisor.

Some points which I keep in my mind whenever I do intraday trading:

• First, choose the less volatile stock.
• Look at the stock’s last two weeks' movement in which you want to trade.
• Find out the support level of the stock.
• After that place the limit of buying at the day’s low and selling at the day’s high.
• Always put the Stop-loss in your trade to minimize the risk/loss.
• Never average the trade or never do multiple trades on the same day. Never do trading aggressively.
• Invest only 50% of capital at once.
• Never trade in that stock that has some recent news.
• Whenever you feel that the market is highly volatile, avoid trading for that day.
• Whenever you are stressed, on that day also you should avoid trading.
• Never trade against the market trend.

Now I am going to share some tips for avoiding losses in day trading:

• Start with sufficient funds: Before you start, sit down and decide how much you’re willing to risk. Bear in mind most successful traders won’t put more than 2% of their capital on the line per trade. Invest only half of the capital at once and keep a financial backup always.
• Time management: Don’t expect to make a fortune if you only allocate an hour or two a day to trading. You need to constantly monitor the markets and be on the lookout for trade opportunities.
• Educate yourself enough: Intraday trading is a technique that can be learned and improved day by day so you have to keep on learning every day.
• Stock selection: Stock selection is the most important part of intraday trading so you have to choose stock very wisely.
• Start with the small: Just do 1 trade in a day. Don’t do multiple trades without knowledge or experience. That type of aggressive trading wiped out your whole capital. And in the starting period take a small profit and try to lean more as you can.
• Timing: The market will get volatile when it opens each day and while experienced day traders may be able to read the patterns and profit, you should bide your time. So hold back for the first 15 minutes, you’ve still got hours ahead.

I request you all please don’t try to start trading these days without experience or knowledge because we all know the condition of the stock market from the last few months. The market is almost highly volatile every day since we facing the global issue of the COVID-19 pandemic situation. So these days, I am also avoiding trading on my own and request you all for the same. Whatever profit I posted recently in my answers was not made by me, that was done by my Research Analyst Partner Eqwires Research Analyst. They have a proper strategy and technical knowledge according to market movement. So take the help of some research analysts if you want to start in this condition of the market, otherwise please wait for some time to start investing.

Intraday Trading involves taking a long or short position in the securities and squaring off the positions before the end of the trading day. The market is very volatile these days, and the profits do not depend on the markets going up but if you want you can also be made profits even in downtrends. Most of the people made a loss in day trading because of greed and fear. So if you want to earn in day trading it requires a lot of discipline and patience. keep your emotions aside. while trading.

I have posted answers regarding intraday trading.

Here is the link, You can also check that for more help:

Manushi Bhatia's answer to How risky is intraday trading?

How much you earn daily is not important. Trading rightly is important in the market. Some trades will surely go wrong and make you lose, but try to minimize your loss and use the stop-loss in every trade.

Thank you so much all for this much love and appreciation on quora. I would like to help you further if you needed.

Special thanks to Manushi Bhatia

Keep learning and keep growing