June 16

Toughest part of Trading

Intraday Trading means buying and selling stocks and other financial instruments on the same day in order to make a profit from the market fluctuations or volatility. The difference between intraday trading and regular trading is that you sell off your positions by the end of the market, while on the other hand you can hold your positions for more than one day.

Trading is not an easy thing to do as much as people might see on the internet. Trading is hard and there is a high chance that one might lose money than make money in trading. One of the hardest thing in trading if not the hardest, is booking profits or exiting from your position.

A trader might know when to take a trade but if he does not when to exit then there is a high chance that he will see his profits turn to losses. Its always fun to see that you are making money, only to see that after a little while the market has taken away all the gains that you could have made.

Greed, could be one of the names that you could give it. Trading does not mean that one can make 30 or 40% gains in a day on the capital that he has employed everyday. It does not work that way. At least not in the beginning or maybe there might be some exceptional traders who make such gains everyday.

One might take a good trade and see that he is making profits and they are higher than what he expected. Here, greed kicks in and you expect the market to keep moving in your favor only to see after a little while that you are not where you were or in the worst case scenario, you are in loss.

When a trader enters into a trade, the first thing he should think of is how much return he is looking to get on his capital. It should be a realistic and an achievable target. As soon you hit that target its best to book your profits and stop for the day. There may be times when you could have made more if you would have stayed in, but it could have gone the other way around. If you exit, you can be worth more than what you were a few minutes ago.

So, always set a target for both your losses and profits that you will make in a day. As soon as you reach your target, book your profits and leave.


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Posted June 16, 2021 by admin in category "Business", "Finance", "Stock Market", "Trading", "Wealth

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