Are you thinking about whether you should go for intraday trading or not?

Well, there are many answers to this question on the internet, but none of
them will provide you with the answer, which should be strictly acceptable to
the newbies because the old traders are already experienced and know what they
should do or not.

We have five strict reasons why we should not do intraday trading, and this
probably applies to the new traders who have lots of dreams and false notions
about the market.

The 5 reasons why we should not do intraday trading are:

5. An uncertain trend

Yes, you are right. In the intraday, we look at the chart normally on a
candlestick chart and in a time frame of 5 minutes or 15 minutes, and most of
us look even in a smaller time frame than the time frame mentioned before.

As we are looking at the smaller time frame, the chart is mostly changing
every second and every minute, and so is the trend too.

To grab the trend in such a time frame is really too difficult to catch. And
there are many reasons for changing the trend, and to look at every reason and
understand all of them is really an impossible task for the new traders.

So uncertainty in the trend really causes the traders to lose money in
intraday trading.

4. Time frame issue

As mentioned above, the time frame really causes a big issue in making us lose
money, as if we look at the bigger time frame, it really makes us comfortable
as it allows us to take some time in making our decision regarding our trade.

whereas in the intraday making of our decision is fast as the time frame
compels us to do, resulting in the wrong decision being taken and we losing
our money.

3. Dormancy or inactivity of the price

From our experience of a decade of trading intraday, we have seen that there
are many times where we have taken trades in hope of our trades going either
way.

But the stock remains dormant for the day and doesn’t move from its range,
creating a loss as we have to cut the trade before the market closes, giving
us no advantage in our trade.

Most of the traders get trapped in the stocks, which creates a continuous dash
like a doji. In which case, if we do intraday loss is for sure.

2. Volatility

Volatility is both the best and the worst thing that causes traders to make
money and lose more than that in intraday trading.

Actually, intraday traders look for the chance where they can get good
volatility to make a good profit, as intraday is the game of volatility.

But here is the mistake: all are trapped as if volatility is good. On the
other side, it is the worst thing as it creates the chance of hitting our
stoploss fast, and sometimes, because of volatility, our stoploss is hit below
or above our stoploss figure because of an instant fall or rise in the stock
price.

1. Leverage

Leverage is meant to be good for traders, as it allows us to take more stocks
with less money. It is somewhat like taking a loan with interest.

Most of the trading platforms allow us to take five times more stock than we
can normally get with our money.

For example, if we can get 1 stock for 100, if we do it intraday, it can give
us 5 stocks for the same amount of money.

If we are on the profitable side, then it gives us 5x more money, but if we
are on the wrong side, then it will take 5x more money than what we get when
we are on the right side.

So, ultimately, we are liable to lose more than what we get in profit.

Final thoughts

Intraday trading is not an easy or baby thing for newbies or traders who have
lots of dreams regarding intraday trading.

Intraday trading If we look at the figures of what the traders from the past
to the present have done, then we will find that most of them have lost their
whole money while doing intraday trading.

But still, if you are anxious and ardent to do it, then be cautious and do it
with a strict stoploss. Only good discipline and money management can make an
intraday trader successful to some extent. But still, the records say it’s
risky.

FAQs

Frequently Asked Questions on Trading Intraday

• • Is intraday trading good or bad?
    • It is not bad, but the circumstances are not with the traders who do
      intraday trading.
  • Should we do intraday trading?
    • Yes, we can do it with perfect analysis and strict stoploss.
  • What makes an intraday trader successful?
    • Money management, a perfect stop-loss figure, and perfect knowledge of
      stocks and markets can make an intraday trader successful.