How to Make Money in Intraday Trading

 preface  

 Are you struggling to find your feet in day trading?

Have you been struggling to find a future in futures? 

Or, looking for an option in options? 

Well, then you search end here. the entire theory and methodology in this book is designed to create synergetic combinations of tools especially for day trading and short term treading. Timing is crucial in such trading even more so in the futures and option segment the combination of tools and skill described in this book will give you  timely and accurate signals for a precise entry into a day trade its subsequent management and trade exit.  

why so many traders fail in the markets 

This is a question that has bothered me for the better part of the last twenty years. There are more sophisticated and better technical analysts than I am out there but many of them have not been able to translate those skills into trading profits. Now, after twenty years of trading every day, I think I am beginning to understand why. Trading by its very nature has a fundamental underlying uncertainty to it. Most people, on the other hand, are comforted by certainty. This is because our minds are inherently trained to seek cer-tainty. So when we suddenly come face to face with uncertainty, we try to find certainty and hence fail. In trading, most people try to find certainty by looking for new and complex theories in the hope that they will then always know exactly what is going to happen next. Such people not only fail in doing that, but they never are able to take trading up to a size which changes their life because in their heart of hearts they know that their "new theories" do not have the success rate they would like the world to believe.

My trading turned around the day I accepted that markets are uncertain and used simple techniques and played big. I did this accepting that I did not have more than a 60 per cent probability of success in any trade. Accordingly, 1 am always vigilant to the fact that my trade may not work and that I may need to quickly cut or change my position. This has given me much greater accuracy and profitability than all the technical analysis pundits because first, my losses are always in control and, second, when I get into a profitable trade I am able to run it hard, applying trade management to it. According to me, the reason most people fail is that they are all running in the wrong direction in their need for certainty and to be right.

With time, I have also realised that somehow my eccentric, aggressive, uncompromising and unreasonable personality has helped me in the business of trading. I have found that conservative, compromising, fearful and

"normal" people fail in successfully trading the markets. The less complicated approach may make you look human but it works.

The Mesmerising Power of Markets

Aasman bhi dikhlaya.... Zameen par bhi le aaya.. Hai gajab iski maya.

Koi bhi bach na paya - From the skies, down to the earth the markets take you in a jiffy. No one can escape this journey.

Most people enter D-Street with an expectation of making easy money.

When they subsequently realise that it is not a piece of cake, and that it requires hard work, perseverance and dedication many are no longer motivated enough to give it what it takes to achieve success and fortune.

To be successful in this arena, you have to have your finger on the pulse of multiple factors, both local and global, every single morning.

Just consider how markets can change colours in no time at all. The figure that follows shows the intraday chart of Bank Nifty. As you will ob-serve, the market first takes you to the seventh heaven, only to later pull you down into a deep abyss, all within a matter of hours.

The mesmerising power of markets can be seen in this chart of Bank Nifty on 18 April 2017. It's so solid at the beginning of the trading day, and equally pathetic by the end.

That's the stock market for you. It aptly defines the nature of markets

and the awe that they create in one and all.

We could have easily kept this book extremely serious, highly complicated

- and barely comprehensible, one suited only for those with specialist education, the lucky, the super intelligent, the gifted few. The idea, how-ever, was something different. With this book I want to instil confidence in those who want to succeed as day traders. I want to show how day trading or short term trading can be done as a business and how it can be your means of earning not just your daily bread but butter, cheese and jam as well. So we've covered not just technicals but every other element that goes into being a successful trader. Be it IT and systems, be it financial capital, be it emotional capital, be it the daily morning routine. Be it how to dress up, what to eat, how to behave, how to watch business TV, etc. I want to create entrepreneurs, and not just traders. I want you to learn to do your own thing, rather than look for a job here and there. 

The Trader as an Entrepreneur

India has always been a country of business oriented people, with a penchant for risk taking and an appetite and inclination towards professions and businesses that connected the country with the outside world. It was the English, who ruled over India for nearly two centuries, who also created an education system that produced nothing more than clerks. Till date, India continues that tradition and has, for example, hundreds of colleges that produce hundreds of thousands of unemployable engineers!

This is not to say that formal education is not worthwhile; but education must also equip us with additional skills that prepare us for life. It will only be then that India can grow and make a mark.

I graduated as an engineer from Manipal Institute of Technology (MIT).

My alma mater invited me on its diamond jubilee function. For anyone to be invited and honoured by the institution where he studied from, and be recognised and honoured for one's achievements by the seniors, is a milestone to be really very proud of. In my speech there I set out in some detail what makes an entrepreneur. I highlighted that in states like Gujarat, engineers earned 7 12,000 as starting salary. Can you imagine the return on investment (ROI) on all the money that your parents spent over decades to educate you from the best of the institutes, giving you quality tuitions and coaching classes, spending on your curricular activities plus entertainment and grooming? What is the rate of return on all of it? I added: "Getting a job is not a dream. Giving a job to ten people is a dream. Visualise repeat-edly, with faith. Be in the zone."*

mountain top or from a beach-facing room, so long as you have power supply and an Internet connection available. You never face labour related issues. You need nobody's permission to be by your family when they need you more than D-Street does.

Before you jump onto the wagon, however, you have to prepare yourself mentally and financially for the challenges. Someone has rightly said,

"Entrepreneurship is about living a few years of your life like most people won't, so that you can spend the rest of your life, like most people can't." So take charge, take the plunge.

Throughout the book, we have addressed the trader as "he" instead of he/she.

That's only for ease of reading. The fact is that irrespective of gender, anyone with the right knowledge, method and mind-set can become a good trader.