Hi everyone, i am new to intraday trading so i want your help, and suggestions in understanding my today’s mistake while doing intraday trade. Today at 9:33 am i bought 100 shares of MAZAGON DOCK SHIP at 1051 each because the price had risen a lot, a high of 1062 was made few minutes ago, i thought the price would rise more after this, at around 9:32-9:33 am ADX was 54, +DMI at 37, after some time the price rose but not that much & a high of 1055.85 was made at 9:45 am. After this, the price fell instantly & never reached 1051,1052. I thought i should average down, & then i will have an opportunity for breakeven or for a small profit. At 10:47 am i bought 100 more shares at 1028.5 each, the average price became 1039.36 for 200 shares. The price fell even more aggressively after. At 11:18 am i exited the trade by selling all my 200 shares for 1014.38. Did i make a mistake by buying at a high of 1051, what should i focus on while doing intraday next time?
@SpacemanSpiff thank you for taking the time to respond to my question, can you also share a technical analysis of where & how i went wrong in my trade?
take some spare money that you can make 0, like say 10K.
With Qty of 1 share in equities, trade for as long as you can and dont look at loss or profit but rather your trading methodology.
How you select stocks, how you judge trend, your entries, exits, pyramiding etc.
You will learn far more on your own than what a ton of material would do.
In this business, there are no shortcuts.
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As @SpacemanSpiff & @Chirag1 already provided important points to consider while taking intraday trades for both new & experienced traders let me answer your questions about your particular trade. Before I put my points forward, I would like to say that this is my point of view about your trade, others might look at it in a different way.
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MAZAGON was on lifetime high, you have to understand the risk while taking trades on stocks which are already on lifetime highs as big players are looking to book profits by selling to small traders.
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You took your positions while the stock was pulling back, it can be taken in a different scenario, but here you should have waited for the breakout of price above first three candles on a 5min chart.
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I am not sure if you are using moving averages, but I would average a position only when it shows strength on the moving average or on the vwap. You can verify strenght by different price action factors depending on your knowledge & experience.
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Last but not the least, try & learn placing a stoploss as soon as you take your trades. After that, work on your physcology to keep them intact, don’t move them if the stock is about to hit the SL. With tight SL’s you will stay in the game for long long time. Remember, you have to be in the game to win or lose, if you are not even in the game then what’s the point? Always try & save your capital wisely.
I hope this helps. Good luck out there…
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Hey @Chirag1, thank you for taking the time to answer my question. I appreciate your insight, but I have a question. While I understand that trading with just one share minimizes risk and would help me gain a better understanding of the process, I’m still curious about the purpose of trading if I’m not actively considering profit or loss. Typically, traders engage in trading with the goal of making a profit. Could you please explain this more?