There is a popular saying in the market that profits are what you book and take out. All else are book profits. Why is profit booking so important? You trade intraday with limited capital and you can only be profitable if you can churn your capital quick enough and profitably enough. Here is how you go about it.

The first rule is to respect your stop loss levels and your profit target levels. Once your profit target is reached, don’t try to have second thoughts. Discipline comes first in intraday trading. Book your profits and take a fresh view on whether the stock is headed higher or lower. The idea is to keep booking and realizing your profits at regular intervals in intraday trading.

Always look at ways and means to maximize your ROI (Return on Investment) in intraday trading? You need to keep booking profits at regular intervals. Once the profit is booked, it increases your intraday trading capital and that enables you to get more leverage in the market. You improve your ROI in intraday trading by frequently churning your capital profitably.

Intraday trading is essentially risky because you trade on thin spreads and in short time frames. The only way to be profitable on an overall basis is to keep booking profits whenever the opportunity arises and when the targets are met. Churning your money quickly is at the core of intraday trading.