Many traders like to do intraday trading because you can eliminate a lot risk holding on to your positions overnight in case market goes against you. The capital requirement for an Intraday Trader also is very much lesser than a medium or long term trader.
But surprisingly many so-call intraday traders ended carrying positions overnight and when market against them, forced selling kills all their previous effort and capital.
In order to be a successful intraday trader you must have a plan and abide by it strictly. Some of the important points to be included in the plan are as follows:
1. Must enter and exit same day.
2. Seek many small profit rather than a single big profit.
3. Learn to cut loss if market is against your plan.
4. If market goes with your plan, let the profit run till your are happy.
5. Start everyday fresh and don not take previous day losses into play.
6. Must obtained an online trading account.
7. Do not follow the crowd as most traders lose money.
8. Do not over trade your margin.
9. Use technical analysis as your basis to make trade decision.
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