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Five Smart Intraday Trading Tips to Cut Down Losses and Boost Profits


New to intraday trading? Scared stiff of making mistakes and incurring huge losses? Worry not, make use of these simple but highly effective strategies to get you started on the right foot.

Are you finding it difficult to keep up with your strategy for day trading? Barely breaking even? Or making daily losses and wondering if you should give up day trading altogether? Worry not, here in this article; you can find the best strategies and tips to boost your intraday trading profits and to cut down on losses.

Irrespective of your specific trading style, you will be able to apply these five strategies to fine-tune your approach.

1.Limit the Trades you do per Session

To increase profits and limit losses, you need to focus more than on the monetary outcomes. You have to start thinking about the quality of your trades. The best way to improve the quality of your trading sessions is to reduce the number of trades in each.

When you have limited opportunities, you are more likely to concentrate on your trading steps. You have to think like a sniper and not a machine gunner. A machine gunner fires blindly, while a sniper focuses on the target and only then pulls the trigger. This is why snipers often have better strike rates.
By limiting the trades in each session, you can see a marked improvement in the quality of the trade. This, in turn, boosts your profits over time.

2. Initiate Early Trading

Very often, the first 15-20 minutes of morning trade is highly volatile. This causes most traders to skip the 20-30 minutes of early trade. After the initial turbulence, prices begin to stabilize, and no trade is left for the day.

If you’re sure of a particular stock trend, then you should take full advantage of it, by initiating early trading. While this approach is a bit risky, it can provide you with handsome returns if you predict accurately.

In short, for day trading you have to decide on your position within 30 minutes of trade opening.

3. Trade during Volatile Periods of the Day

Price swings are the maximum during volatile hours of the day. This means you have higher chances for profit. On the other hand, during the dead periods of the day, you’re likely to lose more as the price movement gets stabilized.

Most day traders falsely assume that they have to trade during the entire day. False. Instead, concentrate your energy on choosing the best trades during periods of volatility and avoid the markets during hours of congestion.

This simple hack not only boosts your performance but helps you save time.

4. Look for Low-Risk Entries

One way to earn more is to lose less. Don’t focus all your attention and energy on how much you can make. Instead, also focus on the potentials of loss.

Keeping your risks low in an unstable market is an excellent strategy. A market that offers high returns with high risks is considered unstable. It experiences powerful price swings. So, look for low-risk setups in a volatile market to increase your reward-to-risk ratio.

5. Fix your Gains and Losses for the Day

This is one of the soundest intraday trading tips to help you avoid incurring huge losses. Greed and fear are two crucial factors that make even expert day traders go astray.

To cut down on your losses, you should know the entry and exit points. For this, you should fix your gain and loss from a trade before you begin it. Expert day traders suggest that you should fix a loss that is 1/3rd of the intended benefits. This way, you know when to stop and avoid falling into a quicksand of successive losses.

It’s true that day trading comes with higher risks compared to investing in equity. The best way to cut down your losses is to arm yourself with the right strategies and learn from the mistakes of others.
Cheers to making profits in intraday trading!

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