After this, if you are looking to avoid loss in intraday trading, one of the most important aspects of intraday trading is maintainingdiscipline at every step. Discipline means initiating a trade and exiting out of it at the precise moments decided by technical charts.
You should try to stay away from greed and hope in trading. It also means that you must always keep a stop loss for every trade that you make. The stop loss should be decided even before you initiate a trade and strictly maintain it to avoid huge losses.
Also, it is recommended to put only a small fixed percentage of your money in a single trade.
You must remember not to overtrade, that is, do not trade multiple sessions in a single trading day because keeping a constant focus on all those trades becomes very difficult and lead to losses ultimately.
If you are interested in learning the basic of technical analysis and about different technical indicators and their interpretation along with their use in intraday trading, you should consider taking an online stock market course in it.
You should also gather more information about trading platforms that can help you in trading. All the trading platforms have some pros and cons. There is a stock market education app which has a lot of useful content related to this topic.
This is called Stock Pathshala.
It has a specific course on technical analysis and technical indicators and oscillators. It also has detailed reviews about trading platforms and can help you choose the one that suits your requirements the best.
Income Tax on Intraday Trading Loss
Whether you make gains or incur losses in your stock market trades, all of that needs to go on record.
As far as filing your income tax is concerned, the profits from intraday trading are treated differently from the general capital gains you make from your stock market investments.
In fact, the technical provision of the gains or losses made from intraday trading is that those are treated as speculation gains or losses. This in simpler terms is seen as business income.
Where the capital gains from general stock market trading such as through delivery trades have a few concessions linked to them, gains from intraday trading is charged at a normal income tax rate. You MUST report the losses so that those can be set off against the profits you may have made from these speculations.
As these entries are reported as business entries, you are supposed to file ITR3.
Hope all these details would help you in becoming a better intraday trader while avoiding making a loss in intraday trading.
In case you are looking to get started with your intraday trading journey, let us assist you in taking the next steps ahead.