What is the most important thing in intraday trading?
TRADINGFEATURED
"The most important things in trading are knowing where you are wrong and having the discipline to lose small"
Knowing where you are wrong means identifying the point t which your trade thesis is invalidated. Thus, it is crucial to set stop loss levels or have exit strategies in place before entering a trade. This ensures that if the market moves against you, you limit your losses to a manageable amount.
Trading discipline is the ability to stick to your trading plan even when emotions are running high. It means resisting the temptation to deviate from your predetermined strategies based on fear, greed or impulse. This discipline is often what separates successful traders from those who struggle. The phrase “having the discipline to lose small’ reinforces the idea that it’s better to take a small loss early than to let a losing trade grow into a larger, more significant loss. This approach helps protect your capital and allows you to live to trade another day.
Discipline requires psychological resilience, accepting losses as a natural part of trading rather than taking them personally or letting them cloud your judgement. It is also about avoiding over confidence in winning trades. Knowing when you are wrong involves being open to new information and adjusting your strategies based on market conditions. It means being willing to admit when your analysis was incorrect and making the necessary adjustments.
Credit: Quora