This article is all about all those best intraday trading rules everyone is searching for long term success. So never miss single word to read with full concentration.
I have taken care for not making you bore at any point of this article.
Hello dear Trader,
I know how it feels when we incur losses while trading in Intraday. We always try hard for not losing anything.
Before starting actual rules and tips let me summarize what you may have done before reading this article.
Tried to trade randomly on any stock to book profits quickly on its moments.
When you book the profit you thought that I would earn more if I not booked early.
You start waiting next time onwards to earn good but finally you have to end up losing more money.
You feel nervous and challenging. Then you fire up for the profit.
Now you will start looking move to look up for the perfect analysts who will guide you to trade and make you profitable. You check on internet, business TV channel and lot more.
Firstly you start trading on their free tips. You can’t make money through their tips. Suddenly from that day your phone started ringing from the Indore or Surat based Stock Market Advisors on every day. Sometimes 5 calls each day.
By showing track sheet and other proofs you start trusting them with the great plan. Initially you become happy by their service but after passing some days you started feeling over confident on their service.
And one day you lose the biggest number ever. Just one tip or series of tips will ruin your entire capital.
Later on you understand the whole game of these so-called “Financial Advisors” to fool you and grab remaining money from your pocket as their service charge.
Now you purely wanted to learn the stock market trading by watching all the important videos on YouTube.
You start watching all those top financial YouTube channels which is sharing great content and their true experience.
Now you do following things
- Analyse charts
- Spend number of evening hours to find the perfect stock for tomorrow
- Read all financial news
- Dream big
- Watch interviews and daily reports by various sources
All these good things begin here to know about intraday trading rules.
Now you decide to start practising with small capital and wonders started happening. You will make consistently good amount of profit in trial phase. But when you start with the higher capital everything reverse. So, read this article carefully for not to make it reverse. You will understand what mistakes you did earlier and that can be avoided in the future.
The Best Intraday trading rules
Whatever the summary I have mentioned above that might or might not match with your scenario, serial order might change but this is the real experience faced by most of us including me so you can relate it with your experiences. If you did not experience any of the above then you are the most lucky person in the world.
I will share you some tips you must follow while trading in Intraday. Here we start.
Don’t take intraday trading too seriously
I did not mean to leave trading or forget all the losses you experienced.
My point of focus is to trade without expecting only profit. When you are looking for “only profit” then you are not respecting the market. You are just going to blame the market when you make losses. This happens when you are not trading the intraday trading rules keeping in mind.
Initially everyone fails. You too. But don’t spend much of your time just thinking about your losses or trading without knowing anything what you are doing.
No matter how much others earn, you need not rush into intraday trading just looking other’s profit screenshots.
Always remember that everyone have different skills and every field requires particular skills. Trading as such.
When you incur any losses which is quite big you can not control your emotions.
You start behaving rudely with your people and relations started spoiling. You not only have the responsibility of building money but building your relations also.
Respect your money, people and time too. Just stay relax while you trade.
Never pray for profit
Trading in the Stock Market became so advancer than its earlier days.
People are successful in intraday with following trading skills such as following
- Technical Analysis and now Price Action
- Market Sentiment Analysis
- Business Calculations
- Company’s Quality checking ability
- Full control on emotions
- Not taking action before the confirmation
Success in the trading is dependent upon entry and the exit at the perfect timing. All the above skills and trading edge are responsible for that.
Intraday Trading Edge is also called as intraday trading rules which successful people do follow in their trading.
Important thing is that these skills can be learned by anyone with proper efforts and practice. You can learn quickly but may take time to practice in actual market.
But always remember that trading is the game of risk and reward just like any other business.
Success in trading is dependent upon the edge or intraday trading rules we do follow. Hence, there is no value for your hopes and prays.
Better you don’t pray and stick to your plan. Read this following tips which will surely help for your success in intraday trading.
Manage your money and trades
Frankly speaking, this point is not related to your Intraday trading, but will definitely witness your long term financial success.
I am just trying to make you aware of the fact of your financial grounds.
I am going you the 2 formulas which surely help you to be consistent in your trading goals.
This is the most important among all Intraday trading rules.
Formula #1 : Capital management
If you are having people in your family dependent on you then you should be very careful before putting your money at risk. You should never dream in the air, every decision should be taken on the ground basis.
Therefore, capital management is important to you.
Divide your entire capital into 3 parts
- Low Risk
- Moderate Risk
- High Risk
I will list out all the sources of investment with its categories*
Low Risk investment sources
- Investment in Real Estate and REIT
- House Properties
- Debt Funds like Corporate/Government Bonds
- Bank Fixed Deposits
- Mutual Funds
- Endowment Insurance
- Assets like car rented out (Fully insured)
- Income from Professional Business $
- Consistent income from YouTube channel or a website blog $
$ These are not investments particularly but you should keep in mind while deciding money to invest
Moderate Risk Investment sources
- Shares of individual companies or ETFs
- Family’s traditional business
- Business which have high competition
- Lending money to local businesses or in friend circle
High Risk Investment sources
- Trading in Intraday
- Trading in Futures and Options
- Investment in companies having micro and small Capital
*These sources may change its category from person to person. This listing is just for the sake of understanding.
Intraday trading is very much risky. So, you never ever take big risks in intraday just by looking towards others.
It is advisable to maintain 1% of the whole capital for Intraday trading. This intraday trading rule not known by most of the traders.
If you have house property of Rs. 80 lacs and some investment in shares of about Rs. 20 lacs and other investments such as Mutual Funds, Bank FD, etc of about Rs. 30 lacs.
Then you have total capital of Rs. 1 crore and 30 lacs
Then you should maintain capital of ₹1,30,000 for Intraday trading.
Now coming to second formula.
Formula #2 : Trade Management
When you do not have control on your losses you will face unpleasant surprises of losses.
Never ever underestimate the power of market. Market is supreme.
- Maintain Stop Loss of 0.5% in each trade position of you Intraday capital
- Keep your daily limit is 1% loss of your Intraday capital
- If you are losing daily for 5 days (trading week) then you are losing just 5% of your entire Intraday Capital which is normal and easy to recover
- Do not trade in that entire month if you lose 5% in the same month
- Have Risk Reward of 1:2 in every trade. (That means, You should expect profit of two times of your risk.)
There are other intraday trading rules and tips to follow beside above formulas.
Those are listed below.
Other Intraday Trading Rules
- Do not over trade (maximum 3 is advisable)
- Take time, don’t rush to trade
- Avoid FOMO (Fear-Of-Missing-Out) attitude. You will get so many opportunities
- Never enter without a Stop Loss
- Use Bracket Order / One-Cancels-Other (BO/OCO) type of order if available. It will automatically shift your Stop-Loss to profit side and book your target
Other important tips which can not tell in one single line are written below.
I think as of now you must be pretty clear about what are the intraday trading rules you should follow and the edge you should maintain. Remember that the list does not end here. There are lot more to tell you.
Start reading with at least 1 page
The famous investor and the CEO of Berkshire Hathaway Warren Buffet at the age of 85+ years still reads 500 pages every day. He says that this is the secret of his success.
Not only Warren Buffet, but all the successful people say reading has the greatest contribution for their success.
If you really wanted to become a successful then please start reading.
It is recommended to start at least 1 page every morning before you actually start your office work. Timing choice is completely up to you but you should be focused when you read.
The main objective is that, you should see better version of yourself every day.
You can start with the any simple book on Personal Finance listed below. You can directly go to Amazon’s book page to take it yourself
- Rich dad poor dad
- The millionaire next door
- The Intelligent Investor. English | Hindi (At least 6 months trading experience required)
- Everyone has an eye on your wallet! (Indian Author)
There are many books which will definitely make you stronger while following EDGE OF TRADING, I will recommend those in the upcoming articles.
I request you to complete reading these books. You will find these books interesting and easy to read.
Earn from multiple ways
If you are spending a lot of hours of a day in trading, you feel unenergetic for another important work. You become addicted and you never know when you started to gamble in Stock Market. It is better if you do job or business to have everything balanced.
Do you remember this famous quote? “Never put all eggs into one basket.”
You should earn from multiple ways to compensate losses.
Discussion with like-minded
It is most important to have a great environment for each type of desires.It is great if you have WhatsApp or Telegram group or any other discussion forum where people help each other for trading queries. But you are searching of any group then you can join this group.
Use VPN if not opening in your browser or directly search on Telegram App.
You can post any query related to stock market and make group active for discussion and help.
Where to start?
Now coming to the main question in your mind. From where to make the perfect start?
For the first you should start understanding the moment of the stock market. Do these simple things.
- Keep an eye on each type of news and watch how the stock market or a company reacts on it. So you can know the importance of each type of news.
- Learn price action works, its support and resistance levels and also consolidation levels by reading technical analysis books and practising on actual market.
- Practice with small capital account and grow gradually. Never add all big funds to earn higher. At least 6 months you should trade in small capital only.
- Understand how fundamentally strong stocks move in the market.
I think we have covered almost all parts of Intraday trading rules to become successful in stock market. If you still think some part is missing then please comment below to add your points.
We love to get help from you to share valuable knowledge to all others.
Until next. Bye bye.