How to Avoid loss in Intraday Trading, 12 Recommendations to reduce loss in Intraday

How to  Avoid losses in Intraday Trading, Best 12 Tips

In this article, we will give you some great tips and ideas from which you can earn more profit in intraday trading and reduce your losses. If you want to earn more profit in less money then you can do intraday trading. However, intraday trading is very risky. Before doing intraday trading, you should know the risks very well, as you can also lose all your money in it. Intraday trading refers to the buying and selling of shares bought and sold for 1 day only.

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

• How to Reduce Losses in Intraday?
• Best tips for recovering your Intraday losses.
• How to avoid loss in intraday trading?
• How to recover the loss in intraday trading?
• How to Minimize loss in intraday?

How to Avoid loss in Intraday Trading

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.

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 a proper trading plan, and greed to earn more money. By understanding some points given below, you can reduce the loss in intraday trading and earn more profit.

Check out the Stock Average Calculator.

Top Best 12 Recommendations to Reduce Loss in Intraday Trading

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.

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.

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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 they will be sold and you will get a profit of 10%.

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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.

Stock Market Tips for Intraday and Long-term.

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 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 a 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.

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Do not Rely on Trading Tips

This mostly happens to traders who are beginner traders. Do not rely on any tips in intraday trading that have not come from a reliable channel. By believing any such news or tips, you can incur huge losses in intraday. Many times, do not choose your stocks by looking at the tips or news given on fake websites or some YouTube videos. First, check whether the news is true or not.

Do not get Emotional

The world's most famous investor Mr. Warren Buffet says that you should not get emotional when buying stocks. Many people get influenced by any company and invest without knowing the company's financials and whether the company's revenue and profit are increasing or not. Also, if you trade in intraday, then do not invest at all without thinking emotionally in the desire to make a quick profit. Keeping your emotions under control, do trading keeping your risk in mind, otherwise, this bad habit can cause you a big loss. Now let's move on to the next suggestion.

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Trying for Rapid loss recovery

Many people when they get lost in intraday or day trading end up incurring more losses in an attempt to recover the losses faster. They start trading in any company without any hesitation to recover the losses faster. When a trader suffers a loss, their goal is not to make a profit, then they only want to make up for their loss. In this situation, you should trade wisely with patience, so that you do not make more losses.

Almost every beginner trader makes this type of mistake. If you want to make a profit from intraday trading in the future, then you must keep this thing in mind. Whenever you have a loss, keep in mind that you have to take a careful decision now and do not increase your losses further.

Lack of trading Discipline

Many people who make losses in intraday trading often find a lack of discipline in them. Those people execute any trade without any risk calculation and proper research and get their losses done. You should do any trade only after properly calculating your risk and reward. Only a few trades should be done every day whether it is a loss or profit. Whenever you do many sari trades in a day, then you are not able to do proper research on those stocks and due to this, the possibility of loss goes away. Follow the discipline created by yourself and earn profit.

Learn from your mistakes

In intraday trading, you must learn from your mistakes and those of others. So that you do not repeat those mistakes again. Always learn from your mistakes and improve your intraday skills. This good habit will surely make you successful one day in intraday trading. Also, make your decisions keeping in mind the above tips, so that you can earn good profits.

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Multiple Trades without Proper research.

The worst habit of many intraday traders is that they do multiple trades in a single day, which mostly results in loss and even if profit happens, you will have to pay a lot of brokerage charges and taxes due to multiple trades. Due to this, your profit becomes very less or no profit at all. Doing a few trades a day and that too with proper research and analysis. Most people suffer losses due to multiple overtrades.

Less afraid and less Greedy

We are taking both the important points "Less fear and less greedy" in the same section. Often intraday traders do many trades without any discipline due to greed and they incur losses. Also, there are some traders who want to trade but because of fear, they just keep thinking. It is essential that you balance your greed and fear and trade properly. Many intraday traders lose all their money in the stock market due to these two reasons and get away from the stock market forever.

CONCLUSION

First of all, if you have read this article till here and you have understood the above tips, then surely you will become a successful trader or investor one day. If you follow the tips and suggestions given above, then you can make good profits even in risky trading like intraday and avoid huge losses. By understanding these 12 tips, you will perform very well in the future, we hope that.

Stock Market Trading FAQs

What is Intraday Trading?

Intraday trading means "Same Day Trading". In intraday trading, the day you buy the shares, you have to sell those shares before the market closes on the same day.

How to Avoid loss in Intraday Trading?

By knowing these few tips, you can avoid loss in intraday: 1. Less afraid and less greedy. 2. Learn from Your Mistakes. 3. You should Use Stop Loss. 4. Never trade against the trend 5. Don't Too much panic in the market 6. Do not Get Emotional. Read the full article for more.

How to recover the loss in intraday trading?

You get your losses done intraday due to some wrong habits. After reading the complete article, you can compensate for your loss and earn a profit.

We hope you like this article very much about Intraday Trading. Feedback is kindly invited. Thanks For Visiting. Happy Investing.

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