The Biggest Lie About Intraday Trading

welcome to viatnation as a lot of you are aware that we use this channel to explain complex stock market concepts so that we can all become better traders better investors and hopefully better human beings i like those topics that would elevate myself and my audience so that at the end of each video we all can become a little bit smarter a little bit more knowledgeable and a little bit wiser and that is exactly why i stay away from those topics that are sensational that are provocative and that are just simply clickbaits because a that is not the intent of this channel and b i don't like to waste my time and i definitely would not want to waste your time so when i was coming up with a topic for this particular video i thought a lot that should i be making this video or not because as you can see the topic of this video is the biggest lie about intraday trading so the name itself is very powerful lie is a very powerful very strong word so i have to make sure that i'm not crossing the line between sharing knowledge versus being just provocative but just after a few minutes of deliberation it became very clear to me that what i have to say to you is something very important and everybody who wants to do intraday trading must know what i have to share so i have no doubt in my mind that what i'm going to share with you is going to make you better trader is going to save you from taking bigger losses in the stock market especially in internet trading and definitely is going to give you a different perspective about intraday trading so with that said let's just get into the meat of the topic what is the biggest lie about it trading so the biggest lie that is perpetuated about intraday trading is that you can come to the market and you can make five thousand ten thousand twenty thousand or fifty thousand rupees every day i see these claims made on youtube i serious claims made on facebook on twitter and all these different social media platforms and i'm sure you have seen them too right so there are claims like okay make 5000 rupees every day using this simple strategy or a foolproof strategy on bank nifty to make 10 000 rupees every day or a regular income strategy on nifty right so people come up with all these different claims and whenever i see these claims being made i just shake my head in frustration because i know first of all that they are not true but more importantly what i know is that there are a lot of innocent traders who are coming to this market for the first time who get attracted towards these claims and eventually they end up losing a lot of their money and the people that i am talking about are not someone who just want to become a millionaire or billionaire they are this innocent people who want to make some regular income from the stock market and they are beginners they don't really have a lot of knowledge and their attraction is towards stability towards some certainty and they follow the people who are making such claims and eventually incur a huge loss so let me explain why this is a lie and what exactly is a lie here because i want to be very precise about what i have to say first of all am i saying that intraday trading is not profitable well that's not the case because i am profitable on entire basis so i don't have any reason to believe that those who are making these claims they are making false claims they might as well be making right claims here am i saying that you cannot make 10 000 twenty thousand or fifty thousand rupees in one day absolutely not i make that kind of a money and again i don't have any reason to believe that others cannot in fact i know professional traders who make uh seven digit and eight digit profits in a day and i have seen them have worked with them so that is also not a problem so intraday trading is not a problem making a lot of money is also not a problem because i believe that if you have the right strategy if you have the right trading psychology if you know how to manage your risk you can make a lot of money from intraday trading so what exactly is the problem that i'm talking about but the problem is with the certainty with which people claim that you can make money on any particular day right so saying that you can make 10 000 rupees from internet detaining is perfectly fine but when people say that you can make 10 000 rupees every day so the problem the lie is in the frequencies in the certainty with which people claim that you can make money so the point that i'm trying to make here is that you can be a profitable intraday trader but you cannot expect to be profitable on a daily basis now a lot of you might be thinking that okay this almost sounds like a technicality maybe i'm not making 10 000 every day maybe i will make thousand some days i will make five thousand as long as i'm profitable i'm fine with that i'm not that greedy right this is how a lot of people think but listen to me very very carefully if you have this mindset to be profitable on a daily basis not only you will not make that kind of money which you think you will make but you will end up losing all your capital one or two years down the line now let me tell you from a real life perspective there is a problem in this mindset so let's say for example a person decides that i want to make 10 000 rupees every day from intraday trading right so the first day the person takes a trade and he makes a profit of 10 000 rupees so he says you know i don't want to be greedy anymore i will just take the profit i got and i want to be very disciplined so they take pride in cutting their trade and taking the profit what they can right so everything is good that day they went home and they are happy but the next day for example the first trade ends up in a loss of 5000 rupees now what happens well the mental target that you have in your mind says that you have to make 10 000 rupees per day and now you're sitting on a loss of 5000 rupees so what is that going to happen to the trader who is sitting on a loss well they will be tempted to take more trades so from the 5 000 rupees of loss now you are sitting on the loss of 10 000 rupees now what will you do well again the same niggling target which is in your mind it keeps telling you that you know what just keep trying just keep trying just keep trying so you started the day as a very smart mature trader but as you see what is going on is that as the time is passing and with each trade your mental capacity to take informed decision decision based on rationality is going down and your mind which is more primal in nature your desperation is kicking in and what ends up happening practically speaking is people who have this kind of a mindset they start with a small loss and eventually by the end of the day they sometimes see such a big loss that would wipe out all the profits that they had made for several days and sometimes several weeks and several months people who are watching this video who had this kind of an experience i do want you to share your experience in the comments below so that your fellow traders can know what the reality is when you have this kind of a mindset now if you compare this mindset with the mindset of a professional trader a professional trader is not worried about being profitable on a day-to-day basis so they are aware that okay some days i will be in losses some days i will be in profit so their target is to be profitable on a longer horizon let's say on a monthly basis or on a quarterly basis and definitely on a yearly basis right so on a day-to-day basis they know that there will be days they will be profitable and then there will be days that they will be in losses and that is perfectly fine it's all part of the game now let me give you an analogy from cricket that will make a lot more sense think about the best batsman that you are aware of right so whoever is your best batsman ms dhoni or virat kohli or rohit sharma whoever happens to be your favorite player favorite batsman think about them do they hit success on every ball right these are the best of the best players in the world are they hitting success on every ball and the answer is no why not well the number one thing is that you can be the best batsman in the whole world but you need time to adjust on the pitch you need time to adjust with the baller and even after adjusting with the pitch and the baller and the whole stadium they may still not be hitting sixes or force on every ball because some balls will spin more than expected some balls will bounce more than expected some balls will swing more than expected right so the priority on these balls when they are coming is to protect your wicket rather than hitting a six or a four now exactly is the same case in intraday trading because the market is not going to be same every time so every day that you go to the market the market is going to be a little different right so some days the markets are very volatile some days the markets are just choppy some days the markets are in a very strong trend some days the markets are just you know range bound they're not doing much some days the market trends some days the market reverses some months are very event driven like you have rba policies or elections or something which is going to move the market and there are some months where there is nothing going on right so the context of the market changes every day so if you are a batsman who wants to score a six on every ball what do you think is going to happen you most likely are going to take a risky shot and you're going to get out in the same way if an intraday trader comes to the market without having any cognizance of the market context and says that i will make 10 000 rupees today what do you think is going to happen to that trader well most likely he is going to take risky trades and would not be able to manage the risk and start incurring huge losses so the point that i'm trying to make here is that there are days on an entire day basis where you can hit a six no problem there are days on which you can hit a four there are days where you should be just going for the singles and there are days a lot of them where you have to do absolutely nothing your job as a batsman is to just block the ball so that you don't get out right so you have to think strategically you have to think in a long term how to succeed in internet trading you cannot be short-sighted you cannot say that i have to be profitable every day because it is the same as trying to hit each ball for fours and sixes and you know what happens to those batsmen who try hitting on every ball they eventually get out and the other problem that i see with people who have a specific target in mind that they want to make ten thousand fifteen thousand rupees per day is that they see the losses as failures see losses are not failures losses are just part of the equation right so if you are playing a match if a team loses some wickets it is part and parcel of playing a match right so it's very very hard not to lose some wickets but it doesn't mean that you lose the match so just like losing a few wickets in cricket and getting a few punches on your face if you are doing boxing that's not failure that's just part and parcel of the game in the same way in intraday trading if you are taking a small loss that is just part and parcel of intraday trading you should be able to accept that okay it's just a part of what i'm doing and my strategy should be to be profitable in a long term basis so in my books taking a loss for one day two day three days it's not a failure it is a sign that you are maturing as a intraday trader you know what the real failure is in life the real failure in internet trading is not trading without a strategy the real failure is not mastering your own emotions the real failure is not having a sense of risk management the real failure is not accepting the loss not embracing the laws and let it become much more than it has to be see the way i say it is that for an intraday trader including myself the day can end up in one of these four scenarios either i can end up with big profits small profits small loss or a big loss now i don't have any control on the first three scenarios right just like a batsman has no control on saying that the next ball is going to be a sixer i will score a six i will score a four because they don't know right in the same way i don't know i'm going to make one lakh rupees or i'm going to make 1000 rupees but what i do know and what i do have control on is taking a big loss so that is the perspective with which i enter every day because i know i may end up in one of these three and that is perfectly fine because i know my strategies have an edge and as long as i'm not taking a big loss my strategies will eventually keep me profitable in the long run all i have to do all i have to do is make sure that i am not incurring a big loss so going back to the biggest lie about intraday trading people who claim that they have a foolproof strategy people who claim that they have a secret recipe for success that you can make 10 000 or 15 000 rupees per day people who do not want to talk about losses and they only want to talk about profits well a they are not telling you the truth or b they have never made any serious money from the stock market and you need to understand what they are selling they are not selling a specific amount so amount doesn't really matter it can be 5000 rupees or it can be 5 lakh rupees what they are selling is certainty so in this world of stock market which is filled with uncertainty they are selling you certainty they are saying that you know what just come to me and i will tell you a secret formula for making 10 000 rupees every day so whenever people who are coming to the market for the first time when they hear claims like this they are gravitated towards such claims because again it's our primal instinct we want to be safe we want to be certain about what we are doing but the reality is that stock market is uncertain nobody knows what's going to happen tomorrow and these are the people who are selling you that snake oil that you know what just come to me and i know the magic trick which will take away all the uncertainty and you will be all safe here and what the reality is unfortunately innocent people not greedy people innocent people just because of the lack of awareness they follow these people who are selling them snake oil and eventually what happens is people lose money people lose a lot of money i mean i talked to so many people who followed some strategies like this and they lost a lot of money and now they realize it but it's already too late for them and even if let's say they did not lose a lot of money what ends up happening is first of all they are disillusioned right they followed someone who promised them that they're going to make some x amount of money every day so they get disillusioned but even after that bad experience you know they may leave that person but what they did not leave is that mindset that they got from the first person so now they are in search of that secret recipe now they're in search of some other person who can give them a secret recipe for making 10 000 rupees or 50 000 rupees per day and this mindset is the seed of failure which is going to take them out of the market eventually so coming back to originally what i was trying to say that intraday trading is a game of strategy intraday trading is about trading psychology internet trading is about strategies centered editing is about risk management intraday trading is about your execution small losses can not be avoided and small losses are not bad as long as you keep them small you are eventually going to be in this battle so don't be afraid to take a small loss don't be afraid of risk risk is okay start to acknowledge the risk embrace the risk and manage the risk and that's all is required from a good trader and eventually you all are going to be profitable

Channel: VRDNation

Views: 126,785

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Id: znVkhOPrY2s

Length: 15min 38sec (938 seconds)

Published: Sat Oct 03 2020