One of the skills I always wanted to master was to make successive profits in 'Day Trading' aka 'Intraday Trading' in the equity market. I have been religiously learning Technical and Fundamental analysis by watching a lot of youtube videos during this lockdown period. Although nothing can be predicted 100% in day trading, we can still make the use of different parameters available to take the most probable trade which would go right over 70% of the times.
The first and foremost thing one must be sure about is stock selection. This step requires a lot of homework. We should add several symbols into our watchlist and look for trades that might give a breakout in the upcoming day by analysing the charts and reading news articles. This process will eat up a lot of your time if you are new to the market.
The second thing is choosing the right points to enter and exit. I have been making this mistake of not having a prior plan about the trade I take. Most of the time, I ended up losing my hard-earned money.
Third thing is to stick with your pre-planned points no matter where the market moves. Some times we will get to see that soon after squaring off a position thinking we have made enough, market will rise up to touch the moon! The depression we go through at this point can't be expressed with words! It is more painful than losing some money. Contradiction, isn't it? This is how human psychology works.
Coming back to my story, After watching a lot of research on the internet I did my own technical analysis on tradingview.com using several indicators and finally, I succeeded in my prediction in 4 different equities. The shares that gave me profits are Britannia, Reliance Industries, HDFC, and the share that gave me lose is STAR.
I'm extremely happy to be able to understand different terminologies used in the market and am learning new things every day!
Do you have an interesting story to share about Day Trading?