Intraday trading is basically buying and selling of stocks within the same day. Trader prefer intraday trading because in intraday trading stocks are purchased with the purpose of earning profit and not with the intention to invest. To trade in intraday, an online trading account is required. Intraday trading can be more fruitful and profitable if you take intraday tips, because this helps you to know the market trend and performance.
If you want to make money quickly in the stock market, then intraday trading is an attractive option for you. But few things you must avoid in intraday trading. By controlling your trading mistakes you can make money easily. However, if you do not control your mistakes and continue to make these mistakes, then you are likely to take away from trading itself.
These trading mistakes are also known to increase the risk to your hard earned money. You are advised to adopt a good strategy to beat your competitors and avoid doing silly and ridiculous things.
Here are some ridiculous intraday trading mistakes, which you must avoid.
1. Borrowed Money:
This is the first and very important thing which you must avoid while trading. There are several traders prefer to use borrowed money to buy and sell stocks for intraday. Traders can borrow money either from their friends, family members, money lenders and even from your brokerage house. The money which is borrowed from brokerage house is also called as margin money. The borrowed money can help you earn profit faster from your trade. Whereas, it can also lead to lose money fast due to wrong trade.
2. Daily Money Goals:
This is one of the most common trading mistakes you must avoid. Most of the intraday traders usually set daily money goals for their daily and weekly trade. And they trade to achieve those targets. However, you can’t make consistent profits on daily or weekly basis.
3. Trading Everyday:
You must avoid this mistake in intraday trading. For intraday trading or margin trading everyday is not good day. Traders should only make positions for intraday trading only when favorable opportunities are available in the market, not just the markets are opened on a day. The forcefully done intraday trading can only generate losses rather than profits.
Overtrading is one of the most critical thing, which must be avoided in intraday trading. It is a dangerous weapon for self-destruction. The more trading transactions you do on a particular day, the more you are likely to lose money. You can also look for some other work or task for the day. Also you can use your free time to plan the trading for the next day.
Also with intraday trading several traders also trade in commodity market and to earn good profit on their invested capital, they prefer taking commodity tips. This will help them to get updated with the current market status.