Intraday Trading Mistakes

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If you’re well on your way to testing yourself in the tricky waters of the stock market, intraday trading is your chosen method to make an entry. You will need a little more than just good wishes. How about learning some of the most common intraday trading mistakes to avoid?

We presume it’s a good start. Isn’t it!

Anyone who’s been in and around the stock market space for some time must have come across plenty of stories of people losing money in a flash.

Just one wrong move, one wrong trade is all it takes to hurt a trader’s morale, and most importantly, pocket badly.

Intraday Trading is by far the riskiest segment of the stock market, and it can be a daunting task for even the most experienced traders, let alone complete rookies.

Think of Intraday trading as a game. Just like any other game, it has winners, and it has losers. However, losers outnumber the winners in this specific case.

So, if you have gained an idea of how to do intraday trading, it becomes necessary to have a look at the intraday trading mistakes you should avoid.

But, then again, fewer things in the stock market can come close to matching the appeal of Intraday Trading. This is reflected from another fact that it also happens to be the most populous trading segment.

If you wish to trade in options then option trading can be done with intraday trading. In order to avoid mistakes, you can choose the best indicator for option trading and reap the benefits.

That’s enough facts for today and, before we proceed any further, we should learn Intraday trading as a concept of trading. 

In Intraday trading, traders look to ride the ever-fluctuating stock prices to earn money by buying and selling the instrument within the span of a day.

In simpler terms, trade transactions, i.e., purchase, and sale of a financial instrument, are completed before the market closes for the day.

Also known as Day trading, Intraday trading is based on the concept that stock prices rise and fall constantly throughout the day, and thus a good enough method to make money.

Day traders are always on the lookout for any trading opportunities, and as soon as they find one, they take up positions on a stock at the right time and exit those right before the market closes.

That is why it is advised to know the Intraday Trading Time for opening and closing the market so that you can save yourself from uncertain losses.

Since day trading has fine margins for error, many are guilty of committing these intraday trading mistakes unwittingly. 

The best part is there is no minimum amount to invest in stock market in India as far as Intraday trading is concerned.

For Example – Trader A places a market order of 100 shares of XYZ stock valued at Rs 10 per share. The trader then pulls out a seat and tracks the movement and price fluctuations of the stock. 

Case 1 – If the conditions did turn out to be favourable as the trader had expected, and the stock price takes a surge and reaches Rs 105 per share. The trader, in all likelihood, will look to sell the stock and so squares off his position before the close of the market.

Case 2 – If the market conditions went the opposite way to what the trader had expected, and the stock price falls down to Rs 98 per share. The trader will immediately place the sell order to minimize his loss.

Contrary to the common belief that Intraday trading is a gamble, there are certain ways to work your way through the tricky stock market to generate profits or at least minimize your losses.

As can be seen from the above example, knowledge is of utmost importance for traders. So, here in this article, we present you with some of the most frequent intraday trading mistakes that have contributed to traders’ downfall in the market. 

Common Mistakes in Intraday Trading 

For some, Day trading is the easiest source for making some quick buck, and that right there is the very first mistake they commit. To think trading is the solution for their immediate need for money. 

We just hope that’s not the case with you. But if you are an intraday trading beginner then here’s the list of most common intraday trading mistakes you must be aware of. 

  1. Not Conducting Technical Analysis 

There is no such thing as a surety in trading. However, the best a trader can do is study, analyze a particular stock or company’s past performance, and make assumptions. 

This is what makes the basic premise of Technical Analysis of Stocks – trader identifies a company or stock and studies its past performances, and decides whether or not to trade based on the study. 

The trader’s work involves reviewing price, volume charts, among other technical indicators, to make trading decisions. These indicators tell traders whether the stock will follow the current trend or for how long. 

The markets we know are always on the move and can change in a matter of seconds. However, making use of technical indicators to study and learn about the current trends is probably the safest bet you can make as an intraday trader. 

To be honest, rushing to pick the stocks for trading is one of the biggest intraday trading mistakes. So, we warn you against following the same path. 

When trading, choosing the right stock should take up most of the time. Whether you make profits or losses depend on the choice of your stock. 

To make it easier for yourself start gaining an understanding of market technicalities. For this you can refer the top technical analysis books that cover all the important and useful concepts necessary for trading.

      2. Choosing Illiquid Stocks

Intraday trading has a span of just one day. Any trade that exceeds the limit gets qualified as delivery trading. Also, if you are aware of Delivery Trading Rules and if Delivery Trading Strategy is adopted properly then this can also bear you profits.

Traders pick illiquid stocks and then face trouble selling them.

This can lead to traders failing to get enough buyers to sell their stock at the desired price. Not that the trader will be forced to take delivery of the stocks if he/she fails to get a buyer before the intraday square off time in the market. 

However, things can get confusing thereafter that eventually led to intraday trading mistakes and huge losses to the traders. 

For instance – If the trader fails to square off the order, the Risk Management System of a trading platform will automatically sell the stock at the market price even if the current market price is lower than the buying price.

Further, some stockbrokers can even charge for the auto square off facility, so that can indeed be a double whammy for the trader.

The safe bet here will be to trade in liquid stocks. The market rule is that the higher the liquidity of a stock is, the easier it gets to purchase or sell the stock. 

How to identify liquid stocks?

We will suggest you choose stocks of Large-cap, Mid-cap companies. They can be a bit more expensive as compared to the listed stocks of mid-cap and low cap companies. However, the trader will enjoy relative ease in trading.

      3. Going Against The Market Trends

Well, this one is a no-brainer. Try not to go against a market trend. Not following a market trend is another of the Intraday trading mistakes.

We are not saying that you shouldn’t, but the market is controlled by many factors that are beyond anyone’s control, and it can turn on its head anytime. 

Unless a trader attains a fair share of understanding and experience of how the stock market works and is capable enough to make the share market predictions based on Technical Analysis, we will say that you should just go with the market trends. 

For instance – In an uptrend, a trader manages to buy a stock that is valued at Rs 100. The traders should take a short position above this value, say Rs 102

Now there can be chances that the stock price momentarily comes down to Rs 99. However, the trader shouldn’t panic sell, and instead, stay positive that the market trend will soon follow the path. 

But, then again, a lot depends on the time when the order is placed. Your profits or losses are dependent on the timing of your order.

For instance – If you placed an order at around 3:00 pm, and then the stock price falls, there isn’t enough time for the stock to make a reversal. 

This case can be an exception where traders should go against the trend and look to short sell the stock.

      4. Being Impatient

Having a strategy is fine. But, it is only half the job done. The most important part is to show faith in a strategy and not change it too often, too early.

Being impatient and changing strategies without mastering the technique is probably among the most common intraday trading mistakes.

Now, earning profits in day trading is a challenge every day. You can have an occasional bad day at the stock market, but it doesn’t mean that your strategy is flawed.

Your inefficiency to implement the strategy can also be a reason for the Loss too.

So, if you’re trying out in the trading world with limited experience, you shouldn’t be too quick to jump the gun. So, try not to commit this day’s trading mistake. Instead, wait and master your strategy. 

Traders need to ensure that their strategy consists of an entry and exit price. Otherwise, it is easier for a trader to stay in positions for far too long or exit immediately as they see themselves making losses. Thus leading to their own downfall. 

One smart way to manage this is to start using indicators for positional trading. Once you do that, it makes your life invariably much easier in terms of analysis and figuring out entry/exit points.

We discussed above that traders should set a target price and exit those positions without any delay as soon as they reach the determined price. That’s the ideal situation. 

However, if you picked a stock after conducting Technical Analysis, and still the market doesn’t turn around in your favor, show some faith in your strategy and not make a panic sale. 

Also, you can use MIS in order to make the intraday order to long term. This way you save yourself from sudden loss.

There are instances when stocks take some time to pick up the pace. 

     5. Not Setting Up A Stop Loss

Stop Loss, as the name suggests, is a tool designed for saving traders from incurring huge losses. This tool is of huge relevance and significance for intraday traders. 

Stop Loss Order is an order type that a trader places to instruct the broker to sell a stock as soon as the stock price falls below a predefined price on their so-called, Best Intraday Trading Apps.

This order gets executed immediately, thus saving a trader from losses.

Day traders are supposed to have a higher risk appetite to book bigger profits. Their natural tendency leads them towards committing this intraday trading mistake of forgetting to place a stop-loss order while placing a buy order. 

But, intraday trading doesn’t have to be about living on the extremes, i.e, you either make a hell lot of money or lose a hell lot of it. 

As a trader, you should look to maximize your profits, but on the same point, safeguard yourself against losses. Also, it doesn’t even take too much time to place Stop loss orders.

So it is better to stay on the safe side by avoiding one of the biggest intraday trading mistakes. 

For Example – In an uptrend, Dushyant purchases a stock valued at Rs 100 and places a Sell order at Rs 103. Now the market trend states that the prices should go up, thus assuring him of a profit.

However, the uncertainty of the stock market conditions can see prices decline. Just as a safeguard, Dushyant places a stop loss at Rs 98 so as to instruct the stockbroker to sell the stock immediately when the price falls to that specific level.


In day trade, the risk to reward ratio is high, and many traders fall into that trap to maximize the profits on their trades.

Of all, one of the biggest intraday trading mistakes is traders being too impatient and seeking results to show up at the earliest.

Knowledge is the key here, and traders should conduct technical analysis and place the trade on those assumptions.

Above all, the trader must consider the minimum amount required for intraday trading and should invest in a fund that he can bear the loss of.

However, the experienced day traders would know that earning money isn’t all that easy, and expecting to make profits in the first attempt is an unrealistic task.

So, the ideal way to go about intraday trading is to keep expectations real and low. 

Further, traders can feel insecure about their trading strategy and may want to switch things up too early. However, in that scenario, traders should first make sure that the strategy is executed effectively. 

Still, if that strategy fails, only then should a trader look for a new strategy. 

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