What are the hard truths about intraday trading of the stock market


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First of all, I would like to mention that intraday trading is very challenging as compared to other forms of trading. 

Either you make big money, or you lose it all at once, before you can really realize what went wrong.

First, let me highlight some of the risks involved in day trading. Not being able to manage losses, or let them run, is one of the biggest reasons traders lose money. 

Day traders should not risk money they cannot afford to lose. To be successful in day trading it is necessary that you have discipline and proper knowledge. 

You need an internal system of checks and balances to make sure you don’t take too much risk or start over trading. 

You need to learn how to take losses, because losses will happen, especially in the early stages. The rewards of day trading are high, but so are the risks.

Potential for major loss

Depending on the decisions taken during the day, a trader can either make or lose large amounts of money. You must be prepared to suffer serious financial losses. This is part of the process. 

Losses are bound to happen in trading and they are bound to happen, no matter how good a trader you become in the future. No one earns money everyday except god and liar. 

So next time, if you meet someone who claims to make money everyday by doing intraday trading and is trying to sell you his call/service, ask him one thing. 

If he is doing intraday trading everyday. is he making good money, so why is he selling you his service in the first place? 

Many novice day traders incur serious monetary losses in their early months of trading by following a few random calls and lose 80% of their capital before seeing any profit.


Day trading demand

Day trading requires a lot of time and attention to pay attention to national and international news regarding markets, trends, technical indicators and capital markets. 

It takes a lot of time to focus on market hours. Apart from the time commitment, day trading requires a lot of study in addition to your trading hours. 

Succeeding in this highly demanding profession requires in-depth knowledge.

For example. If you are taking intraday positions on a stock, then you should be aware of any specific news related to that stock on that day. 

And obviously, you need to be agile enough to understand the impact of the news on that particular stock before you can actually take any position.


Stress is a regular part of every day trading work. Stress and anxiety arise when tracking various activities in a matter of minutes. 

In addition, the job requires that you make quick decisions regarding the acquisition or sale of securities, which may involve intensive time constraints.

Over trading

Over trading means trading too risky or/and trading very large stocks. 

Novice day traders usually get overwhelmed by the fast pace of day trading and let their emotions decide for them instead of their knowledge and analysis.

One way to avoid over trading is, you should set a fixed daily return of 1% to 2% and once this is achieved, you should simply close everything.

Borrowed money

Day traders rely heavily on buying stocks at the risk or margin provided by the broker. 

Borrowing money to trade in stocks always carries some risk. Day traders use leveraged money to increase returns. 

If not successful, this could result in the trader losing a large amount of money, and possibly the receipt of a loan. 

This is why it is so important to know the basics of day trading before getting into the field.

Understanding market trends

The focus of a day trader is to regularly watch the movement of stocks. They follow the movement of the stock and make a quick transaction before changing course. 

Since day traders intend to make profits on all major and minor stock movements, it is very important that they have knowledge of market trends, technical analysis and investment charts. 

If this knowledge is absent from a day trader’s skill base, then despite making a profit, he may end up at huge losses.

Out of pocket expenses

Starting out as a day trader can cost a lot of money out of pocket. These expenses may include: software (and hardware), commissions, manuals and other resources. 

Developing a budget for these out-of-pocket expenses is very important before entering the arena of day trading. 

Also, remember that since you take multiple positions, you also end up paying a higher brokerage. 

Remember, you are paying brokerage even for losing trades. If your prediction is correct, you can exit at an early stage.



Operational problems like power outages, software/hardware issues, interrupted internet connection etc. can hamper your day trading performance for no fault of yours.

Writing this detailed post does not mean that intraday trading is bad and should not be done. 

However, I would like to highlight only a few key points that you should keep in mind before starting intraday trading.

Because, intraday trading is very challenging and not easy as most of the people often think.


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