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How to reduce loss in intraday, how to avoid loss in intraday trading

How to Reduce Losses in Intraday

Topics related to "How to Reduce Losses", that we will cover in this post

  • How to Reduce Losses in Intraday
  • how to avoid loss in intraday trading
  • How to recover the loss in intraday trading
  • How to Minimize loss in intraday

    If you want to make more profit with less money then you can do intraday ( Day Trading ) because before broker intraday you should know the risks well, you can also lose all your money in it. Intraday trading refers to the purchase of shares bought and sold for 1 day only. 

    Horse trading refers to intraday trading, after the market opens in the morning and 15 minutes before the market closes in the evening. If you have to sell and if you have sold then you will have to buy in intraday trading on the same day and you will have to buy and sell shares on the same day. You cannot keep those shares. If you have not created a class before closing the market, the computer will place a class of automated orders.

    Reduce loss in intraday trading

       Equity intraday - 5 to 20 times exposure or leverage for stocks that allow F&O trading. This means that if your broker gives 10 times leverage and you have 10,000 rupees then you can buy shares up to 10,000 rupees. But you have to sell those shares on the same day

       Many people lose their lot in intraday trading, this loss can be due to many reasons, for example overtraining, non-adherence to stop loss, lack of proper trading plan, greed to earn more money. By understanding some points given below, you can reduce the loss in intraday trading and earn more profit.


    12 Recommendation to Reduce Or avoid Losses in Intraday Trading

    Minimize Losses in Intraday

    1. Do not trade without proper Analyse the Markets

    If you do not have a good strategy for entering or exiting the market then you should not trade in the market so you can make your loss. If you are confident that the stock will rise or fall today then only you should trade. You do not need to trade, trade only if you are fully confident. You should sort out some stocks in which you have to do intraday trading.


    2. Do not do overtrading

    Overtrading is a big mistake that can harm you. Not only will you do more damage due to overtrading, as well as your broker also charges you a broker for every trade or order. You only do some trading during the day, whether you lose or gain. 

    In intraday trading, if you encounter losses in multiple trades, it is likely that your margin may be used and your broker will ask for more margin to keep the trade at a loss or close the position. Which can cause a lot of loss. So trade as much as you have set for a day.


    3. You should Use Stop Loss

    This is a great rule to prevent losses in intraday trading. We understand this in simple language - Suppose you bought a stock at ₹ 100 per share and started trading below ₹ 100, then you will obviously start making losses. To prevent this loss, you place a stop-loss order, like you bought Rs 100 per share. If you have a stop-loss order, you can place an order around Rs 95 as per your capacity and in this order, your shares will not be sold until your stock reaches Rs 95. 

    As soon as your stock does not fall below 100 to 95. If you move to 75, you will be sold at 95 due to a stop-loss order and your loss will be fixed at 5 per share, while the current share price has reached 75 per share. If you did not place a stop-loss order, your loss would have been 25 per share. You can also place a target order with a stop-loss order. You can apply it at 110. If the shares that you held will go to 110 then it will be sold and you will get a profit of 10%.


    4. Never trade against the trend

    Never trade against the trend, because of this you will take a huge loss. It is safer to trade in the direction in which the market is moving. When the stock market is moving in a particular direction, then probably all stocks, which are considered good for intraday trading, move in the same direction. In such a case, always follow the trend in which the market is moving. 

    If you buy stocks in a falling market and sell them when a market is still moving upwards, you are adding to your losses. When a market is under the control of the bulls, you should always buy stocks or stay in any open positions. And if a market is showing a slowdown, then you should also sell your stock and buy it later when the prices are going to touch down. Always remember, never trade against trends


    5. Don't Too much panic in the market

    Many traders make their losses only due to panic. One of the basic reasons traders lose money in intraday trading is due to nervousness. When you panic, in the stock markets, you sell the shares without thinking and book the loss and after a short time due to the volatility the shares will give you profit again if you sell them because of the panic. Profits always flow from the trader who terrorizes the trader who does not panic. 

    When you panic in intraday trading, you cut your position very quickly. You require the principal amount of risk for intraday trading, but your risk must be managed properly. The most important rule of intraday trading is that despite the volatility in the market, you do not need to panic.


    Apart from these 5 reasons, there are some other reasons that you can work out your loss by knowing:

    6. Do not Rely on trading tips

    Don't rely on any tips that haven't come from a credible medium. By believing any such news or tips, you can incur huge losses in intraday.

    Minimize losses in Trading

    There are some other facts keeping in mind that you can minimize your losses and earn good profits.

    Six Other Recommendations to Reduce Losses in Intraday Trading

    7. Do not Get Emotional.

    8. Trying for rapid loss recovery.

    9. Lack of trading discipline.

    10. Learn from Your Mistakes.

    11. Do not Overtrade.

    12. Less afraid and less greedy.


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