What Are the Mistakes You Can Avoid in Nifty Intraday Trading?

Intraday trading can be risky if you do not exercise caution. If you are a novice in NSE trading, there are many factors that make you susceptible to losses. A single mistake can prove fatal for your investments. People often join the markets with over-enthusiasm. Within the next few months, nearly 90% of these traders make an exit with heavy losses. It is simply because they do not understand the rule of the game. In the haste of making big profits, they repeat their mistakes and lose their discipline.

If you want to sustain your position in share markets, avoid the mistakes stated below:

Not Following the Trends

Many new traders follow the rumours instead of going by the trends. You must keep a close eye on every event, news, or rumour circulating in the markets. But, do not believe in the rumours without a personal analysis or professional advice of the experts.

For example, if a stock falls by 10% or 15%, it is not wise to immediately start buying the same stock. In day trading, you should never go opposite the market trends or buy stocks that fall by 10 to 15%. This stock hardly comes up to its original position in the intraday trade. And, there are no chances to make profits from such trade.

Rushing to Book Profits

Making hasty decisions is the biggest mistake of intraday traders. Here, they should follow the advice of the best stock tips provider in India to make calculated decisions. Contrary to this, many traders rush to book their profits instead of revising the target and stop-loss.

The idea is to follow a proper pattern for trading in the markets. Firstly, you should make a stop-loss order. Depending on the trend of stock, you can book profits or revise your target and stop-loss again.

Averaging in Loss Trades

Many intraday traders try to average in their loss trades. This strategy may work for seasoned traders but not for the amateurs and small traders. When dealing in risky and volatile securities, you must stay away from this mistake. Most of the experts recommend that you should exit if the buy or sell is not in your favour. You should keep averaging of loss trades only when you are in a gaining position.

Overtrading in Intraday

In intraday trading, there is no point losing your hard-earned money by indulging in overtrading. This is the common mistake made by many novice traders. If you follow the advice of the best stock tips provider in India, they will tell you that frequent trading can be fatal to your overall earnings. You should not put your funds to the trading unless you are confident of the positive trends in Nifty.

Not Doing Proper Homework

When traders act without research and homework, they mostly end up making huge losses. A proper homework saves you from irrational decisions and faulty trading. Particularly, when you are new to the market, a lack of knowledge can incur unexpected losses for your trades.

Learning the trading patterns is very important to sustain the volatility of stock markets. You should gather complete information on the company and its latest price movement before planning your actions.

Ignoring the Timings

Intraday trading largely depends on perfect timing of the trades. You cannot miss any entry or exit point. When buying a stock, consider both high and low prices at which you can exit the whole day. As soon as the stock reaches the desired high point, you should book the profit. On the other hand, if the prices fall gradually, square off your position at a stop-loss trade.

Avoid these common mistakes often made by intraday traders. Take advice from professionals and make steady progress in the market.