Day Trading Tips

Hey folks, in today’s post I’ll be sharing some day trading tips that’s gonna help you.

The first tip is to exit at break even instead of exiting at a loss when stock turns against your bet – The mistake I used to make while day trading is I would take losses when trade doesn’t go my way. But recently I’ve started to exit at break even. The break even point after taking taxes, brokerage etc. comes around 7.5 paise per single quantity of stock that I trade. I usually have a target of 20 paise but if the stock finds it hard to hit the target and if there are chance of reversal then I’ll exit at a target of 10 or 15 paise. What this does is, at the end of the day my P&L remains in green even after various charges. Ending the day without losses makes me sleep peacefully and it also makes me feel that I’m not gambling. Earlier I would take losses but these days I exit at break even or small profit when the stock doesn’t hit the target and when the chances are good my target hits. The value of target depends on the situation sometimes it can get to 40 paise or even 1 rupee per single quantity of stock depending on the market situation.

Wait for the opportunity – Timing plays a crucial role in day trading. You should know your exit before entering the trade. And good exits come when you wait for the right moment to enter. My strategy is to look at supply and demand. For others it may be candle sticks and indicators. Note, enter the trade only if you can exit at break even. As mentioned earlier the break even can be a small amount. Your profit comes after break even. Many a times there are opportunities where you can break even and also make a profit. Enter the trade only in such situations. Or else you make a loss, not trading is better than trading at a loss.

The next tip is to reduce the quantity of the stock you trade when probability of profit is less. You might be trading 1000 units of a stock under good circumstances and this doesn’t mean you should trade the same number of units even when probability of the stock hitting the target is less. When probability is less you can trade 500 units or even less.

The next tip is to not over trade. Wait for that one particular moment during the market hours when the entry would be perfect and then exit with a profit. Sometime back I had a day where I lost the profit I made due to over trading.

The next tip is to not trade with emotions. There can be days when your boat is sunk by half and you be like “I’ve already lost half, so I don’t mind the other half sinking too.” This usually happens on bad trades where traders expect stock to move according to their bet but the stock moves in other direction and they don’t exit with a stop loss. The aforementioned can make you lose real big and that’s something one needs to be aware of.

The next tip is to not trade against the trend. The trend can change either ways during the volatile hours and then become a little stable. The goal is to stay with the trend. Big players can change the trend for a short duration and that is something you should be aware of. According to some people on the interest, it’s believed that big players have access to more data than retail traders and also know certain things like stoplosses of retail traders. Big players have machine gun and retail traders have a knife. The goal is to wait until their bullets get empty and then attack. In this way you can prevent yourself from being a prey to market manipulation.

The last tip is, you should maintain a trading journal. Keeping account of profit and loss makes you aware of where you stand. When the market is going up anyone can make money but the real talent lies in decoding unpredictable market conditions and making money from even the worst of the conditions. Also if you are someone who makes big profit on most of the days then maintaining the journal can be helpful to verify opening balance and closing balance. In case your profit doesn’t get credited to your account, you can immediately contact your broker. Also maintaining the journal lets you know how your trades performed during particular months of previous years and you can compare it with present situations. For example, during the Budget season, stocks can go up due to good announcements and when there are bad announcements one can short the stock. At the end of the month you’ll know how you’ve performed. Making money during bad announcements means you’ve evolved in your trading game. Because everyone would be complaining against the announcements and you’ve used it as a catalyst to make money.

Well, that’s it for this post. See you next time with a different one. Do checkout my other posts on this website and share it if you’ve found it useful. Byeee 🙂

Disclaimer : Trading stocks is subjected to market risks. Please read all the terms and conditions before investing. The motive of this post was to teach little things about stocks for those who do not understand much about stocks. will not hold any responsibility for any losses incurred to the readers of this post.


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