Mantra's for Intraday Trading

 1. Money Management

Ensure you have a clear understanding of your capital and risk tolerance:

Capital Allocation: Determine the portion of your capital dedicated to trading.

Risk Per Trade: Limit risk to 1-2% of your trading capital per trade.

 2. Decide Asset Class

Choose the asset class based on your time availability and risk appetite:

Currencies: High liquidity and volatility, suitable for active monitoring.

Commodities: Good for diversification, can be volatile.

Equities: Ideal for trading individual stocks with significant research.

Futures & Options (F&O): High leverage and risk, suitable for experienced traders.

Indices: Less volatile than individual stocks, representing broader market movements.

 3. Setup: ORB, Open High - Open Low, or Your Favorite Strategy

ORB (Opening Range Breakout): Identify the high and low of the first 15 minutes of trading and trade breakouts.

Open High - Open Low: Monitor stocks where the opening price is the same as the high or low, indicating strong trends.

 4. Back Testing

Backtest your strategies using historical data:

Visual Testing: Manually check historical charts to assess strategy performance.

Indicators: Use a combination of price action and a maximum of three indicators:

  VWAP (Volume Weighted Average Price): Average price a stock has traded at, considering volume and price.

  RSI (Relative Strength Index): Identifies overbought or oversold conditions.

  Bollinger Bands (BB): Defines high and low prices relative to market volatility.

  Moving Averages (MA): Smooths price data to identify trends.

  Super Trend: Indicates trend direction, useful for swing trading.

 5. Risk Management

Risk/Reward Ratio (RR): Enter trades with a favorable RR of at least 1:2 or 1:3.

Stop Loss: Always place a stop loss to limit potential losses.

 6. Psychology for Intraday Trading

Emotion Control: Emotions are the enemy of trading. Trade like an algorithm or follow rule-based strategies.

Trading Hours: Focus on trading from 9:15 to 11:00 AM and after 1:30 PM.

High Probability Trades: Trade only on trending days and avoid trading every day.

Avoid FOMO (Fear of Missing Out) and Revenge Trading: Stick to your plan and avoid emotional decisions.

Travel and Trading: Avoid trading or trade with less capital when traveling.

Technical vs. Fundamental: Do not mix technical analysis with fundamental analysis during intraday trading.

Post-Trade Discipline: Do not look back at the price after exiting a trade, even if it moves up significantly.

 7. Earning Targets

Avoid setting fixed targets for daily earnings. Instead, focus on executing high-probability trades.

Selective Trading: Trade only when the setup meets all your criteria.

 8. High-Probability Trading

Trade Selectively: Avoid daily trading; focus on high-probability setups.

Patience: Wait for the perfect setup that aligns with your strategy.

Quality over Quantity: Prioritize the quality of trades over the number of trades.