InvestorQ : My broker tells me that the market is smarter than me. Then can I make money in intraday trading.
Chandralekha Desai made post

My broker tells me that the market is smarter than me. Then can I make money in intraday trading.

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Mitali Bhutta answered.
3 years ago
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That is not what your broker meant. As a trader, you need to respect the market trend. Your job is not to outsmart the market. Your task is to interpret the signals given by the market and trade accordingly. When we say follow the Trend, it does not mean that you must be reactive. While doing intraday trading, you can always prefer to move with the trend to earn profits on the expected lines. During a market when the overall prices are rising, you need to look for stocks whose price will rise accordingly. Conversely, a market slump calls for identifying stocks whose prices are going to fall. The message is that be as close to the underlying trend as possible. In intraday trading, the trend is always your friend.
That is not what your broker meant. As a trader, you need to respect the market trend. Your job is not to outsmart the market. Your task is to interpret the signals given by the market and trade accordingly. When we say follow the Trend, it does not mean that you must be reactive. While doing intraday trading, you can always prefer to move with the trend to earn profits on the expected lines. During a market when the overall prices are rising, you need to look for stocks whose price will rise accordingly. Conversely, a market slump calls for identifying stocks whose prices are going to fall. The message is that be as close to the underlying trend as possible. In intraday trading, the trend is always your friend.

Secondly, make it a point to research thoroughly before trading. It has been noticed that most of the intraday traders miss out on the research part. Undertaking quality research happens to be an inseparable part of intraday trading. Get over the belief that only investors need to research. As an intraday trader, you also need to research markets. Only your execution must be more sync with the underlying trend of the market. Start with identifying an index and then locating industries in which you are interested. Afterward, create a list of stocks which are liquid. Follow up with the fundamental and technical analysis to arrive at the right stocks. Then, of course, enter and exit the stocks based on technical indicators.
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