In this post, I will be sharing my lessons learned over years.
Intraday & Positional trading is entirely different & one should not mix both.
Here are some key differences between both types of trading.
| Intraday Trading | Positional Trading |
| Your stock selection matter’s most & you need to have the most volatile stock on your watchlist | In the short term horizon, markets should be trending. |
| Stocks that are having some news or having max volumes. | Stocks that are forming base & Markets should have low volatility. |
| Focus & maximum Discipline is needed during intraday trading. | Positional trading need’s patience, there could be times neither your targets get hit nor SL |
Some worthy point to note regarding Positional Trading
- The stock market works on greed & fear. It is not necessary that for getting fearful, the market should go entirely at the bottom.
- Markets never go in a straight line. If they go then be ready for the same movement in opposite direction.
- The market could be irrational most of the time. But that doesn’t mean you do something which is entirely opposite to markets.
Now small note on Targets for Short term trades
- I generally do positional trade. This means I buy on one day & sell another day, Now taking about holding period, it could be days, weeks or months.
- For deciding targets, I generally prefer the resistance line drawn base on historical data on charts. & If stock is at ATH, will use Fibo levels.
- But that doesn’t mean that my targets are always reached. If targets are not reached. I prefer to keep trailing SL.
Now, let’s talk about keeping Stop Loss
- I generally do not keep anything in the system as sometimes during the panic, Stop Loss can get triggered but still price close above my level.
- Generally, prefer checking prices after 3 pm and take a decision based on that.
- The above thing is easier said than done. but one has to admit, that you have to take risks for taking rewards home. therefore it is better.
- One has to make a choice for the path and keep following it, I prefer not to do anything before the closing of the market.
- I maintain a sheet where my stop losses are mentioned for my quick reference.
Sometimes you will lose but you will gain big if you stay disciplined.
Final Lessons
- You don’t have to take 100 trades. but make sure whatever trade you take, don’t make the same mistakes again.
- Markets are not rational. Neither do Market want you to make money?
- Therefore there will be occasions when you want to exit but do follow your system and if it is not allowing you to exit. then don’t.
- Discipline is one of the biggest power that a trader can have. Practice it.
- There could be days when your target is hit but your greed has overpowered you & you are not willing to exit. One has to follow the system to make it perfect.
Last will end this post with one quote
