Money Management Tips

Money Management Tips Intraday Trading

Avoid Losses Intraday or Swing Trading

Traders Lose or Gain depending upon their money management system. If the trader is good at maintaining proper money management then success shall follow. Losing is a part of trading but losing less and winning more will lead them to succeed.

List of Simple Money Management Tips to Avoid Losses in Intraday Trading Strategy.

  1. Limit your losses by keeping track of your winning and losing trades money saved is money gained.
  2. Learn to reduce your losing trades and increase your winning trades 
  3. Losses cannot be reduced just by decreasing the number of trades but by minimizing the loss in a losing trade. 
  4. The percentage of winning trades versus losing trades must be more.
  5. Maintain a risk-reward ratio.
  6. Use trailing-stop loss to maximize the profit in a winning trade and stop loss to minimize the loss in a losing trade.
  7. Successful traders minimize losses, reduce losing trades, and maximize profits by increasing winning trades. 
  8. No trader becomes successful overnight it takes time, experience, commitment, discipline, and money management skills. 
  9. In the initial stages do not invest huge amounts in order to gain huge amounts it is not possible to gain that way. Invest a small amount and make small gains initially and consistently the profits itself accumulate. 
  10. The first step to success is limiting the losses.
  11. Success in trading comes by limiting the losses and gaining. 
  12. To be successful you either increase the number of winning trades or increase the profit amount and limiting your losses. 
  13. Once the loss is heavy the capital gets eroded and the profit earning capacity of the capital is also reduced.
  14. A seasoned trader can make profits in all types of markets whether bullish, bearish, or volatile market conditions by knowing how and where to cut losses. 
  15. All losses are small at the beginning and keep growing to become huge. 
  16. Cut losses at the beginning. 
  17. A common mistake is letting the losses grow hoping that it reduces without making any effort of reducing it. 
  18. But the market has other plans it keeps increasing the losses which go to a proportion that when you want to cover it you have to take huge losses, which ultimately blocks your mind to take decisive action, later. 
  19. It is always important to cover the losses when the loss is bearable and not leave until it becomes unbearable. 
  20. Exit if you feel the trade is not moving in your direction, put a stop no matter how confident you feel. Do not wait for the losses to come down, it may not so Quit the trade immediately to cut your losses. Take a different trade or quit for the day.
Follow the above simple money management system tips and the success follows.

simple Money management system

Trading Quotes: Ed Seykota

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Common Repetitive Mistakes

Common Repetitive Mistakes Intraday Trading CITS

Common Repetitive Mistakes in Trading Account for 90% of Failures

If you are not profiting consistently or losing heavily then you are definitely committing these Common Repetitive Mistakes Traders do in Intraday trading. If a trader tries to improve upon and overcome these repeating mistakes, any trader is going to be a winner. Make sure not to repeat these mistakes.
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Entry-Exit Time

Entry-Exit Time for Intraday Trading Strategy

Entry-Exit Time for Intraday Trading Strategy is very important to make profits in the volatile markets.
Winning in Intraday trading needs a good entry and exit prices in Indian or any markets requires a deep study of the technicals, market behavior, and chart patterns to make a successful trade by following good money management skills and discipline. 

The best time to enter is to wait until the price comes back to the open after forming either a low or high and resumes in the opposite direction that is after the wick is formed, and moves crossing the open.
Always follow the longer time frame and trade looking at the shorter time frame for your right entry.

A trader once entered into a trade should carry trade for more than two hours for a particular trade in intraday trading unless there is a huge break down in a short trade or a huge break out in a long trade. If you think you have made a good profit, book your profits before it erodes and becomes a losing trade.

  In most of the trades, there will be a follow up of the previous day trading chart pattern and will be reflected in the first two hours when the (BTST or STBT traders book their positions) then a range-bound trade or aligning with the European markets takes place, and the last two hours will be deciding factor for the closing of the day and next day’s trade. (Position will be taken for BTST or STBT trades). By this analysis, if you have taken a position in the early hours it is better to close the position within two hours. Depending upon the market conditions and the movements of the stocks a long trade or a short trade can be taken for intraday trading.

Entry-exit time in Indian markets
Entry Exit time for Intraday trading Strategy in Indian markets


 In a day’s trade, if you look at the above candlestick there are three parts a lower shadow, an upper shadow and a real body the length of which depends on the strength of that script for the particular day. Trading depends mainly on the formation of this candlestick for the day and movements later on.

Professional traders take a position for the day and next day’s trade during the last two hours by moving the markets for their best entry levels and the volumes increase significantly during this time normally by taking out the stops placed at supports and resistances. Usually, the traders entering during these middle hours get hit severely on both sides because of the volatile movements.

During the last two hours, the trend may change, causing the candlestick turning green to red or red to green. This is the main cause of traders losing out because of holding the positions from open to close or for a long-duration in a losing setup. Traders should note that intraday trading is not position trading so it is better to exit when they make a good reasonable profit or with a small loss.

If you are not a professional trader and not able to analyze the European markets, international markets, technical chart reading, moving averages, data releases, current news, economic calendar it will be very difficult to trade during the middle and closing hours. So The best intraday trading time will be the first two hours of the day and after the wick is formed and by following all the trading rules set up by the trader.

In a 4H candlestick be idle for the first hour to check how the price is moving, if it makes a high or a low and comes back to open and you can take the trade for another two H1's when the trade is moving in the opposite direction.
If you look at any candlestick it will have a wick which is what happens at the beginning of the time frame and then moves into the actual movement of the trade or in the longer timeframe direction. 
Think about it and enter into the trade. 

When to best exit an intraday trade?

Entering a trade is very easy but when to exit an intraday trade is the most difficult of the trading job.
  • Exit your trades if you think you have made decent gains, do not wait for a jackpot, the gains may turn into losses, so exit before that. If you are sure of your jackpot call go for a trailing stop loss in case it reverses its position exit immediately before you are wiped out of your profits.
  • If your trade has turned against you and if you think you have no chances of making a profit exit with a small loss before it turns out to be huge.
  • If your trade remains where it is and you are not sure of where it is heading exit,  you can always enter after it shows its direction and starts moving.
  • If you made gains in the early morning trade exit immediately because that keeps you in good spirits and a positive frame of mind for the entire day.
  • If the decisions you take in the morning go wrong, the negative mood continues and the human mind keeps making errors of judgment because of the loss and more mistakes may happen it is better to be cautious.
  •  Make sure to put stops to all the trades, the stops depending upon the loss you can bear, or at the resistances and support levels. Only if you are thorough with your stops you can expect to make profits. Stops should not be placed more than 2% of the capital amount.

Pick Right Stocks

How to Pick the Right Stocks Intraday Trading?

Trading is Half done if you can Select and Pick the Right Stocks for your Intraday Trading Strategy where maximum effort is required and once the stock is selected wait for the right setup and enter the trade and achieve your goals.

How to select and Pick Right Stocks for Intraday Trading Strategy? 

Check out the stocks price movement 

Have you experienced the price movement of the stock reversing as soon as you enter the trade? or the movement of the stock you picked stops moving as soon as you put in your trade?

Picking the right stocks moving in the direction of the trend is very important to make profits or the price of the stock as soon as you buy, moving in the opposite direction. Picking the right stocks is what matters and the timing.
Learn how to pick the right stocks in the direction of the trend in these 5 simple steps for the Intraday Trading Strategy in NSE.

For intraday, the best trending stock to pick would be the stock that is outperforming, and moving with volumes on a particular day with either a bullish or bearish trend, will be the ideal one and technically strong in that particular direction preferably the stock moving in the direction of the market trend. 

For Long trade

If the Indices is trading positive and strong, take a long trade

To select 3 or 4 top market gainers or losers with high volumes 

Step-1: go to the NSE site

Go to the NSE India site, or in your terminal check the high-value gainers 

Link https://www1.nseindia.com/live_market/dynaContent/live_analysis/top_gainers_losers.htm
Pick 3 or 4 stocks from the gainer's list with high-value trades in futures, nifty 50 stocks.

Step-2: Check the day's gainers and losers details

Write down High, Low, Open, Close, Average, and Previous close. of each of the stocks picked.
Check the percentage gains in gainers or losers  (value traded and not the volumes.) See that the stocks opened in green.

Step-3: note the parameters

Note down all parameters like pivot, supports, and resistances of the stocks. 

Step-4: Pick bullish and bearish stocks

Out of the selected stocks, pick the bullish stocks which are trading above average throughout the time for a long trade, and pick the bearish stocks trading below average for the short trade.

Step-5: wait for a dip to trade

Wait for the stock to make a dip to their supports, do not enter randomly, Enter the trades at supports and have a stop loss right below the supports or average depending on your risk-reward ratio. 
Reverse the strategy for short trades.
wait till it reaches the support in a bullish stock or resistances in a bearish stock and makes an entry with your stop loss below or above it depending upon the trade you take.

  • It is always advisable to take long positions in a bullish market and go short in a bearish market and hold on to it until the market remains in the same direction and exit once it changes its direction or if your target is achieved. 
  • To take up long/Short positions one should look at the volumes, the %gain, its open, low, close, high, average, pivots, resistances, supports, and other parameters besides the technical’s into consideration. This should be considered with different market conditions and timings to make an effective decision.
  •  One should avoid taking the reverse position (against the main trend) of any moving stock hoping that it reverses as per your wish. 
  • Markets do not listen to anyone. Go with the Market trend.
  • Make a strategy that gives maximum returns and fewer losses during the market's volatility or noise or whipsaws. 

Important: 

Always pick the stocks one that opens above the previous closing price, makes a low near the closing price, has a good start trending and trading above the average price, wait for a dip to enter in a bullish stock, and vice versa in bearish stock in a downtrend market.

When to enter a Long trade:
stocks pick for day trading Reliance

stocks pick for day trading Reliance


See that the stock that you pick for intraday trading has enough liquidity, that is, it should be trading in good volumes.
    If the stock is opened in the green, that is if the open price is greater than the previous close it is more likely to go up. Check the low of the stock, preferably near the close, and check for the pivots, supports, and resistances. Check the long-term chart. 

    Avoid stocks that have both open and high at the same price and trading lower, it has the tendency to go down, wait until it breaks the high it can be traded long.
    Make sure to trade above the moving averages.

    When to enter a Short trade:

     The opposite is true for short trades. 
    see that the open is less than the close and high is around the close. , it should be trading below the moving average. check out for pivots, supports, and resistances.

    If you are long or short and made good profits get out of the trade. If the price begins to trade in the opposite direction and moves below the moving average in a long trade exit and vice versa. 

    Stock pick for day trading Axisbank

    Stock pick for Intraday Trading Strategy Axis bank

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    Trade Techniques

    Trade Techniques Intraday Trading CITS 

    Every trader longs for earning decent profits in Intraday Trading but are they learning and following the Right Trade Techniques for Intraday Trading Strategy? Trading can be easy only if a trader learn how to set up the Right Trade Techniques in Intraday trading Strategy, principles and stick to it under all circumstances.

    Learn the basics of technicals, chart setup with the right indicators. 
    Money cannot be made easily by simply trading without knowing the market movement, price action, right chart setups, with the right indicators, controlling your emotions.

    If you know the right trade techniques and have the required skills, trading can earn you a reasonable or good money like all other business. Profits follow only by adopting the right money management and retaining the capital by strictly following the set rules preferably written down.

    If you do not learn the right trade techniques and do not follow the rules you can easily lose all the money you have and become bankrupt due to huge drawdowns in one's account.

    How do you make decent profits in your Intraday trading Strategy and become Successful?

    Patience is the keyword. Patience to wait for the right entry setup is the key to success, That is not placing a trade just for the sake of trading which will lead to losses. Waiting and doing nothing until the right trade opportunity is found, as per your strategy, will make you money. Having the right money management strategy in place before going into the trades is a must and an exit strategy with a prefixed loss for a failed trade. Setting out and following the Right Trade Techniques in Intraday trading strictly, A Trader without having any emotions or ego will benefit more.

    Right Trade Techniques must include the right attitude when you are wrong, learning to rectify the mistakes of the failed trades and the reasons for it will increase the chances of a successful trade in the future. Always learn from the mistakes, and improve upon them, analyzing the failed trade will turn around the next time when the same situation or the setup exists.

    Right Trade Techniques include Placing the stop-loss order at the predetermined price will save you from a huge drawdown if there is one.  Having a good risk to reward ratio will make your success an easy task.

    In intraday trading earning decent profits and retaining it is the most difficult yet crucial job, and getting the profits consistently day after day, week after week, month after month is a herculean task, day trading requires tremendous speed in execution, at the same time it requires a lot of patience to wait for the right entering opportunity and executing the trades. 

    Control your emotions.

    A trader may have a good winning strategy and Right Trade Techniques getting profits daily but still one mistake of not placing a stop loss and not maintaining proper money management, averaging the losses may result in wiping out the entire capital. Controlling one's emotions when in trade is another important aspect of trading. When the executed trades show you profits you feel elated, you keep flying in the skies and suddenly if the profit drops and if there is a loss, you just fall flat from the sky where ever you were floating. 

    Avoid the extremes of emotion when trading, keep your cool do not get carried away either with profits or losses. Not getting out of the trade with a small loss is an ego issue do not be stubborn, if the market is saying that you are wrong, just exit from your trades. Do not think that the market will respect your decision and surrender to your will and gives you a profit. It gives a damn to your emotions, so be on your own and respect the markets. Listen to the markets. You know the trade is wrong, exit before it is too late. If you are having a loss, you do not exit because your ego says Wait! and you wait. wait. wait until your capital vanishes and your EGO stays. Let this not happen.

    Making decent profits in any Intraday Trading Strategy needs a trader to continuously keep improving one's Right Trade Techniques skills of Intraday trading by knowing and learning from the vast experiences of the great traders, learning from their books, or videos because it takes our lifetime to learn all the skills of the trade by ourselves. Try to gain as much as possible from them. It is like software updates keep regular updates and improving or we may become worn out and become outdated.


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    Stop Loss Placing

    How to Place Stop Loss in Intraday Trading?

    The best practice is to trade at Support and Resistance

    Learn Stop Loss simply placing for Intraday Trading Strategy.

    • Stop Loss is the pre-determined price at which you are required to exit a trade if the stock price goes against you by limiting the loss which otherwise may make a huge loss and make a dent in the capital amount or even wipe out the capital itself.

    • Make sure you place a Stop Loss immediately after each entry. It is always advisable to place a stop loss of not more than 2% of the capital amount.
    • Place a Stop Loss just below the support level if you are going long on the trade and above the resistance level if you are short on the trade. 

    Levels of Support and Resistances S3, S2, S1, Pivot, R1, R2, R3,

    • For a buy trade, the previous resistance, support, or pivot levels act as a Stop Loss price, and vice versa for a short trade. For example if the trade is executed between R1 and R2 for a long R1 acts as a Stop Loss and for short trade, R2 acts as Stop Loss, 
    • If the gap between the supports is huge calculate the amount of loss that is bearable and place Stop Loss accordingly. 
    • In some cases, the average traded price should be used as a Stop Loss price. 
    • Make sure that the Stop Loss is placed at a distance so that it is not hit quite often with the market noise.
    • Those following the moving averages can place their Stop Loss order just below the average for a buy call and just above the average for a short call.
    • Select a good strategy where you are not required to lose heavily with strict Stop Losses. when you enter a trade, you must be confident that there is little or no chance of hitting a Stop Loss.
    • Losses are inevitable in trading but losing heavily is in your hands. Overtrading also leads to losses because of reduced stop-loss gaps, which get taken out in the market noise or waves. Stop Loss should be comfortably placed.

    50 Trading Rules 2021

    50 Trading Rules 2022 Intraday Trading

    If you follow these rules trading will get you the desired results.

    Day Trading Rules 1-10

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    WMA Chart Setup

    WMA Chart Setup Intraday Trading CITS

    Weighted Moving Averages(WMA) cross over Indicator

    Intraday Trading Strategy Chart Setup with Weighted Moving Average(WMA) Cross Over Indicator is the best of all the indicators for Intraday trading available wherein you can have a very low risk and high reward ratio, the stops, and targets are very clear. This is an indicator where you will see the trend reversal, where you can conveniently switch sides and earn very high rewards if it moves in your favor and with a minimum loss if it doesn't.

    All new traders get confused with setting up the of the chart with the right technical indicators, The best Intraday Trading Strategy Setup is the WMA Chart Setup with moving averages and the parameter is Weighted. Weighted Moving Averages(WMA) show you the right movement of the averages taking into consideration price as well as the volumes. 

    If you have these Weighted Moving Averages(WMA) on your chart then you can less depend on the supports, resistances, and pivot points as the moving averages themselves will present you with the dynamic supports and resistances in various time frames.


    Entering a trade without a proper intraday trading setup is a disaster in the making. Most of the traders enter a trade without knowing the technicals and enter randomly which within a short time turns out to be failures. 

    How to Setup the Chart with Weighted Moving Averages Indicator(WMA) in MT4

    Go to Indicators and select moving averages

    In parameters select period, style: any color 

    MA method: linear weighted
    apply to weighted HLCC/4
    and in visualization select all time frames.


    Continue the process for different time periods like 10, 20, 30, 60, 200 with different colors and line weights if you need it. 
    save the template with a name.

    now open the chart and apply the template to your stock. check different time frames you will notice the supports and resistances in each time frame. 

    Before entering into trading, pause a little, take a breath. Do not press the trigger immediately. check for the right setups.
    Go long if it is trading above the moving averages and short if moving below the moving averages. 

    Wait for the right opportunity as per your planned trading setup and then enter. Ask yourself Am I Right?  Will this lead me to profit or Loss? If You are sure Only then make an entry. 


    Random entry leads to losing trade. Do not average a losing stock, the loss becomes huge if it continues in the same direction. Wait for an entry that is predetermined as per your best intraday setup strategy. Enter at oversold or overbought levels depending on long or short calls. It is very easy to enter a trade than to exit.

    If you are bullish on a particular x stock or gold it does not mean that it actually flies on the trading day. Look for the chart what it says that is more important like on the particular trading day it may be consolidating or making a correction or maybe volatile so considering the actual movement one should trade accordingly for an intraday trade.

    Weighted moving averages setup nasdaq

    Weighted moving averages Intraday Trading Strategy setup nasdaq

    The best MT4 Chart Setup for Intraday Trading Strategy

    In an intraday chart, one should be able to find out the long-term movement and the smaller time frames of the chart to make a good entry and exit strategy. 


    If you want to follow this here is a step by step details. No complicated technical indicators or details keep it as simple as possible. Only moving averages and williams % will do the trick.

    Weighted Moving Averages setup for Gold

    Weighted Moving Averages WMA Chart Setup for Gold 

    In the MT4 Chart add 10 WMA, 20 WMA, 30WMA, 60 WMA and if you want you can add 200 WMA indicators to your chart with different colours and line weights.
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    Strong Mind Control

    Strong Mind Control Intraday Trading

    Intraday Trading Strategy needs Well-Disciplined Trader:

    Do Not Change Rules or Strategies for a Few Failures

    A trader who follows a set of rules framed by himself in order to minimize losses and maximize profits by putting their own experiences of the consequences of the previous trades, to use and not repeating the same mistakes again and again, and following the winning strategy making profit consistently may be termed as a well-disciplined trader and who is strong emotionally, which will eventually lead to developing their own effective strategy.

    • Strong Mind Control is Sticking to a Winning Strategy:

    If you have a winning strategy and making profits stick to the strategy unless you keep losing continuously over a period of time because your setup may not be working under the present market conditions which eventually changes and you will be back on track with the same strategy with profits later on.

    Develop a systematic trading rule based on your experience of your winning strategies and follow it blindly whether you lose or gain it will lead to success If you had gained earlier with those rules you are likely to win again. Do not keep changing your strategy very often.
    • If you keep changing the trading rules or break the rules you are set to lose.
    • Do not keep changing your strategy often, If you gain consistency in any strategy adopt it and do not change it.
    • Have good money management skills with a good reward risk ratio.

    • Strong Mind Control for a Big Achievable Realistic Goal:

     Have a big achievable realistic goal, work out a monthly or a yearly target, work for it, divide it into average daily profits, without greed, work for it, and move in its direction.
    • Do your homework daily for the next day's trades according to your strategy.
    • Do not forget to place a stop-loss order.
    • Keep your emotions under control and do not trade when you are under stress.
    • Keep your mind cool always.

    Suggestions for New Traders

    10 Suggestions for Intraday Trading CITS

    New traders keep losing continuously or occasionally gain profits. To become Successful follow these Suggestions for New Traders for Day Trading or Swing Trading and adopt a suitable strategy to suit your temperament, money management techniques, and ability to wait for the right pre-determined setup. 

    If you want to succeed as a trader follow these 10 important suggestions to avoid failure.

    • Never ever enter randomly for the sake of a trade and speculation wait until you are sure of your entry point as per your strategy.
    • Are you sure of your entry price? if yes only then a trade is to be taken after ascertaining the risk-reward ratio, the stop-loss price assessment where the stop loss should be placed such that it is not taken out in the noise, the loss should not exceed your risk-taking capacity.
    • What is your stop loss and how big or small it is? If you are placing your stop at 2% of the capital it should not be taken out or moved beyond 2% under any circumstances. just stick to a principle and formula.
    • Are you able to withstand the waves or the volatility of the price movements? Depending upon the time frame one's stop is to be placed.
    • Are you losing all the profits you made? If you are losing all the profits and taking stop loss hits then the profit-taking expectation is very high which needs to be introspected and control your greed.
    • Are your stops regularly hit? Then you need to study and make the necessary changes to your strategy and entry points.
    • Are you making reasonable profits in proportion to your trading capital? If yes just stick on to the strategy even if you have a few losses, just because you had a few losses do not try to change the strategy for a few losses.
    • Do not go for recommendations of greedy profits, the loss will be in the same measure.
    • If you made some decent reasonable gains book your profits, don't go for big profits until you are sure of increased profits lest you end up with losses.
    • Gain less, but gain regularly, capital retention and loss prevention are the Key, let this be the mantra.
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    Intraday Trades

    Trades for Intraday Trading in NSE CITS

    Intraday Trades for day trading in NSE  Stocks are selected using my own strategy which is explained in other articles which you can find in the labels if you want to learn. Trading is risky and I do not recommend it. This is purely for understanding the markets and for my own use.

    Intraday Trades for 29.12.2020
    Afternoon trades
    Intraday Trades for 21.12.2020
    Morning trades
    Intraday Trades for 18.12.2020
    Morning trades
    Afternoon trades
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