In this post I will cover certain Intraday trading don'ts; so that you can approach your Intraday trades the right way and considerably reduce your trading risks.
1. Don't Trade Without a Stop Loss.
Intraday trades is all about leveraging volatility in stock prices.
2. Don't average down.
The best way to trade Intraday is to 'exit' out of 'loss trades' as early as you can. One should never average down on the anticipation of a reversal in price trend.
4. Don't Wait till Market Closure to Book Profits.
Book profits as soon as your target price levels are hit (yes, its important to have a pre-determined price target in mind).
5. Don't go by Tips or Rumours.
When it comes to Intraday trades, don't fall for rumors or so-called 'tips'. Base your buy and sell decisions upon current events; specially those that the market has not anticipated or factored in before. For example, if a company has declared the winning of a major contract post the end of yesterday's trading session, its price might move upwards today.