Every person who is trading in stock market, wishes to earn handsome amount of money from the markets. The fact is that nearly most of the people lose money in stock market especially the once who are practicing intraday trading.
Reasons behind this are as follows :-
1) Fails to understand market trend
Most the intraday traders lose money in the stock market because they fail to understand the markets. They fail to understand the exact market movement and take wrong trading calls which make them lose money in their intraday trades. Thus following the market trend and doing proper analysis is very important for the success in intraday trades.
Always fix your your profit points in the mind and trade accordingly.
3) Poor money management
Another major reason intraday trader loses money in stock market is because of poor money management skills. Putting all their money in single trade without taking calculated risks. Taking too much leverage from their brokers. Always make a basket for trading suppose 10 stocks to trade give equal weight age to all stocks.
4) Follow Advisory tips blindly
Almost every broker gives some trading tips and stock tips to their clients. Some of the traders follow these tips blindly and take trading calls based on the tips.
5) No Stop loss
Many intraday traders trade without setting the stop loss, which indicates that on a particular trade they have not calculated the amount of loss they are ready to incur. Placing stop loss means you have calculated your losses and this the safest way to trade in the stock market to minimize the losses.