How Can I Avoid Losing All My Money from Day Trading?

This is possible … only for those who traded just a few trades, say 2 or 3, and by luck they would have made a profit in them. There is another possibility if one takes about 5 trades with good money management techniques and proper risk vs reward ratios; about 2 wins in the batch of 5 may fetch a gain at the end of the day. This case is possible for experts, but experts are very few, and they would have acquired this skill by spending more than 10,000 hours of trading and fine-tuning their skills. They have also practiced and perfected a few strategies.

My Recent Experiment

One of my recent experiments involved taking 4 trades. I initially thought the metal stock, Hindalco, would go down and so short-sold it. However, it went against my prediction, hitting my stoploss in the first three trades. By 2.30 PM, I was already testing my skill and patience, feeling jittery, but I managed to take the fourth trade. Much to my surprise, Hindalco moved as per my plan, and I maintained a 1:3 risk reward ratio this time, making a gain by 3:10 PM. My total loss from the first three trades was offset by the gain from the fourth one, resulting in a zero trading loss for the day.

Risk and Energy in Intraday Trading

Intraday trading is risky and highly energy-consuming. However, there is nothing wrong with trying for fun and learning with proper techniques. The best thing to do is to focus on winning trades and at the end of the day, week, or month, if you stay profitable, that is great.

No Way, It’s a Zero-Sum Game

Please understand that it is a zero-sum game. If no one loses, no one can make money, including you. However, with proper practice and learning, you can bring the odds in your favor by cutting down on your greed and fear. Remember, strategy is only 30% in becoming a successful trader; the remaining 70% is your management.

Do join us, and link is in our bio.