If you believe that the trading is like gambling, then you are completely wrong. In gambling, you have to participate to lose and do absolutely nothing to stop losing. Whereas in trading, the scenario is different. You must participate to get in a trade, and you must participate to cut your losses. If you don’t participate to cut your losses, then your entire trading account will be drained.
In Intraday trading, you don’t know beforehand, what exactly your risk is. Whereas in gambling, you know exactly what your risk is and the game ends before the next one starts. But in trading, the market never ends, because it keeps moving all the time.
Therefore its very important to be an active winner and an active loser in Intraday trading. It is easy to be an active winner or loser because the event never ends. Sometimes, the market may come back in any trade you are in. But this possibility is very slim. In this case, you don’t need to actively participate to get back your losses, you should simply stay with the trade and allow the Stock market to come all the way and give back your losses.
Because of this possibility, the traders will always be under a constant temptation to not cut their losses. For most of the trader, cutting the losses is painful. Therefore many of them opt to avoid the pain and decide not to be an active loser. They will be under the misconception that they are in a winning trade, and that trade will show them the profit. Or else, they will ignore the evidence which says that they are not in the profitable trade. Traders will not be ready to accept that they went wrong. This quality will drain them as well as the trading account.
If you want to be successful in Intraday trading, then learn to be an active loser as well as an active winner. You could be a successful trader, only if you cut your losses actively, before they get too large and unmanageable. Of course, the temptation to not the losses will always be there. But you have to overcome it. If you don’t overcome it, then it will do nothing, but get you in trouble.
You can earn money from Intraday trading, only if you act and do things to help you trading. Don’t sit on your hands, when a trade is going against you. You have to do something to cut your losses. Don’t hope that the Stock market will come back and help you to get back all.
Be an active winner, when a trade is going in your way. Always act in your own best interest. Move your stops to lock in profits, when your trade reaches the target, cover your position. This is how you have to be an active winner or active looser.
If you are not sure about the entry and exit to the trade, then take the help of the stock advisory company which provides Intraday tips . In this way you will be following the Stock market trend and at the same time you will be earning from the Intraday trading .