Intraday trading is a lot more about discipline and process than about being a great trader. Here are six steps you should take to keep your intraday trading losses under check.
Be very selective about your stock trading list for intraday. Focus on liquid stocks with low levels of spread risk. Avoid trading in stocks that are fundamentally and technically volatile. Limit your stock selection to just about 10-12 stocks to track.

Always trade with a stop loss. This is the golden rule of intraday trading. Stop-loss cannot be an afterthought but must be part of your initial order. Apart from stop losses, you must also put price targets in the system. When you put closed bracket orders, you also get higher margin benefits.

Protecting your capital must be your primary focus in intraday trading. Put strict limits on how much you are willing to lose in a trade, in a single day and overall as a percentage of your capital. When such limits are reached, just stop trading and rethink your strategy.

Averaging is a cardinal sin in intraday trading. When you buy a stock and the price goes down that means you were wrong. When you average the stock, you are being wrong twice. Also, don’t become an investor by default just because you don’t want to book a loss. For an intraday trader, overnight risk has to be avoided.

Intraday trading has 3 parts; buying, selling and keeping quiet. When the markets are too volatile or when you are unable to understand the trend of the market, just sit out. You may end up having your best days sitting out rather than jumping in.

Finally, if you want to reduce your risk as an intraday trader, treat the market trend is your friend. Never try to outguess or outsmart the market. The market is always right and always gives you signals. Trade accordingly. There is no easy route to intraday profits. But keeping risk in check is the most important step.