I am told to start intraday trading with small positions. Why is that?

Always cut your coat according to your cloth. This applies more in case of intraday trading. It is not uncommon for beginners to get carried away once they make some profits during day trading. They start believing that they have cracked the market code in a day. That is not the way it works because markets have an uncanny ability to surprise on the downside.

Markets are volatile, by default, and predicting the trends is not easy even for seasoned professionals. In such situations, beginners who are just starting off on intraday trading can easily lose all their investments. This is why an important intraday tip is to invest smaller sums that a user can afford to lose. When you invest a small sum and make a profit, you are more confident in your next trade. What you can do is to take a higher risk with your profits earned and a lower risk with your core capital so that your overall risk is still at a calibrated level. This will ensure individuals do not face financial difficulties in case the markets do not favor them. This may sound quite simple and easy but it is very important to get carried away in the heat of the moment.