Episode 4 - Trading Mindset for Intraday Trading

Developing the Right Mindset for Intraday Trading

Hello everyone! Welcome back to Sandy E-learning. Continuing from our previous discussions on intraday trading prerequisites, let's now focus on developing the right mindset for trading.

Disclaimer: I am not a SEBI-registered trader. I am sharing my knowledge based on my experience. If I make any mistakes, please let me know, and I will correct them.

Trading Mindset

There's a quote I live by: "Trading is a business, not gambling." It's important to remember this before starting your trading journey.

Why Mindset Matters

As mentioned in previous videos, nine out of ten traders fail. To be part of the successful 10%, you need the right mindset. You cannot expect to earn 100% profits every day in the stock market. Avoid treating trading like a lottery. Instead, approach it as a business.

Profit Expectations

Set realistic profit expectations. For example, if you aim for a 1% stock movement daily, you can achieve a 5% profit in a single trade. Over a month (20 trading sessions), this could result in a 100% profit on your capital. Patience is key.

Key Principles

  1. Avoid Greed Don't chase unrealistic profit margins. A steady, consistent approach yields better long-term results.
  2. Patience Wait for the right opportunities to enter and exit trades. Avoid impulsive decisions.
  3. Weekly and Monthly Analysis Instead of daily profit calculations, focus on weekly and monthly performance. A 20-30% monthly profit indicates a successful trader.
  4. Control Emotions Money can evoke strong emotions. Avoid making trades based on greed or fear. Stick to your strategy and remain disciplined.

Brokerage Charges

Remember to account for brokerage charges. For example, if you earn ₹1,000 in profit, but brokerage fees are ₹300, your net profit is only ₹700.

By maintaining a business mindset and focusing on percentage-based profits, you can navigate the stock market more effectively. Always remember that trading is a disciplined business, not a gamble.

I hope this helps clarify how to approach intraday trading with the right mindset. Happy trading! 📈💼

Feel free to leave your questions in the comments, and I'll be happy to answer them.