More than being right is being profitable that matters. At the end of the day, your traders must end in making money for you. There is a subtle difference being right and being in the money. Let us start with a rhetorical question. What is the difference between an analyst who predicted the Nifty direction 9 out of 10 times right as against another analyst who predicted only 6 out of 10 times right? The answer is that there is no difference because both did not make money on the trade. The focus of the intraday trader must be on making money on the trade and not whether the bottom and top of the market was caught. Out here you are a practical trader and not a theoretical analyst. The intraday trader needs to be crystal clear that the core focus is to make money. How many times you are right does not matter; rather what you did when you were right matters more.

More than being right wrong, what matters is that you gradually learn and improve your trading skills as an intraday trading. That is where the trading book and the trading diary come in handy. Ignoring the trading plan and the trading diary can impact your success in intraday trading. These are two very important things that most intraday traders tend to ignore. Let us look at the trading plan first. The trading plan captures the broad outlines of how the intraday trades need to be conceived and executed. This includes how to put stop loss, profit targets, what factors to consider, how to select the right trading hours, maximum acceptable loss etc. This is like your constitution and must guide you in your intraday trading. This is what helps you to improve your trading activity over time. In fact, the trading plan is the constitution for your trading activity and you need to adhere to it strictly. The trading diary is a record of your trades during the day along with the justification and the EOD analysis of performance. The trading diary is intended to help you identify weak areas and plug the gaps in your trading strategy. You must religiously use both these facilities otherwise you cannot realize the full benefits of intraday trading. If you don’t accord due importance to the trading plan and the trading diary, then your success as an intraday trader could be difficult.