Losing is the best way to learn from your mistakes, and that experience gives you the perspective and a clear understanding of trading psychology. Many people who start trading, almost immediately quit trading after they come close to losing their entire capital; some even lose the entirety of their fund. If you want to avoid that, go slow, real-dead-slow, like a 🐢 turtle.
for example; If you have a capital 💰 of 1 Lakh Rupee, allocate 50% of it to an emergency/backup fund. And use 30% of the remaining for your everyday trading and keep the last 20% as a free-floating-fund; Try not to use the whole 30% of your trading-fund. Use only 20 or 25% of it. When you start making profits, withdraw only those profits to your bank account; remember it's crucial to maintain the allocated reserves; otherwise you will lose your way.
💡 It's just an example of managing risk, so based on your risk appetite, adjust your fund reserves.
My Top 6 Golden Rules To Make Consistent Profits in Stock Market Intraday Trading.
- Always maintain a stop-loss; don't lose more than you can afford.
- Only trade in trends. Avoid sideways markets at all costs.
- Never trade against the trend, even if the volume says otherwise.
- Use scanners to find and pick bearish or bullish stocks.
- Patience 🧘; If you pick the right entry with RSI or Fibonacci or whatever indicator works for you, it helps you not to worry too much about the stop-loss.
- Don't be greedy; take profit when you can. Pick multiple target prices, if you expect more profit, use the trailing-stop-loss or trailing-take-profit feature.
Finally, calculate your Net-profit and make sure it matches the broker balance sheet.
If you are a beginner, I would suggest starting with shorting bearish stocks, it has a high chance of profitability for beginners.
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