InvestorQ : Can I trade intraday without stop loss if I am very confident of my trade?
Rashi Mehra made post

Can I trade intraday without stop loss if I am very confident of my trade?

Answer
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Crowny Pinto answered.
2 years ago


Whether you are confident or not does not really matter. Nobody can predict markets with any degree of confidence so you should first try to manage risk. Intraday trading must always be done with a strict stop loss only. The stop loss will act as your insurance when the market becomes very volatile as your downside risk will be limited to the extent of the stop loss level. Ideally, put the stop loss at the time of initiating your intraday trade and don’t wait till the last minute to put stop losses. You can get hit negatively by volatility in the markets.
Intraday trading accounts for a major chunk of the trading volumes on the NSE and the BSE. Traders find it convenient to trade intraday as it requires lower margins and they do not have to worry about delivery, demat charges. Each day, the profit or loss on intraday trading gets adjusted to the client account. The only way such a volume of intraday trading can be managed at a high level is to maintain stop losses and protect your risk.