Intraday trading needs experience, expertise

Can trading be learnt? Is it necessary to learn the rules and regulations of trading? Just as driving a car is a skill which has to be learnt so is trading for which training is imperative. Trading is a skill and art which you need to acquire from professionals.

Before trading, you need to decide on what stocks to pick, when to buy and when to sell, know about fundamental and technical analysis, price of the stock, current market news related to share market, etc. Most of the small investors lose money in the stock market.

Those who invest small amounts get small returns. Most of the intraday traders also lose a lot. People who invest in intraday market have the fear of losing their capital so they prefer to end trade on the same day. Someone who is new to the market also tries to do intraday trading. Intraday trading by itself is an art. The trader needs to identify the crucial entry and exit points of a stock.

Intraday trader needs to identify a stock to invest, maintain a stop loss and exit the market on the same day because they believe in the theory of buy today and sell today. In reality intraday trading should be done by experts who already have enough knowledge of the stock market.

This kind of behaviour is similar to someone attempting to acquire a Master’s degree without having basic schooling knowledge. Intraday trading involves lot of risk.

Generally, these days most of the TV channels give information related to the stocks to be picked for intraday trading. They have panel of experts who give guidance on which stocks to buy and an individual might go by their advice and earn profits also. But this does not happen always. An intraday trader has chances of high loss or high profits. There is a lot of uncertainty accompanied with intraday trading. Market has an inherent system in it.

When a trader puts a stop loss it gets triggered and bounces back and this happens as a cycle. That's the reason why maintaining a stop loss for every trade is mandatory. Whenever a trader becomes greedy and does not maintain a stop loss presuming a bounce back and, in a greed, to get more profits he will end up in a huge loss. Fear of the loss of capital is conducive for protection of capital.

Even if there is a loss on some trade and profits on some trade it is always but better to run on stocks giving profits. But here the general trading tendency is to book some profit and exit the market. Any trader is bound to make mistakes at some point of time.

Mistakes come at a cost which here maybe losing a part of a capital. As observed earlier loss is an integral part of stock market. We need to learn from our past mistakes and continue trading. To conclude if you have the expertise and are well-versed with the tips and tricks in intraday trading you can go ahead with it. (The author is a homemaker who dabbles in stock market investments in free time)