The Significant reason why people fail in intraday trading is that they jump into this field without any preparation. Traders do not study market behavior and pattern. They do not even know the high and low of stock. It is seen that many traders do not go through or read the company parameters. Many people simply have faith in the tips given by their relatives or friends, and thus they put their hard earned money at stake. It is said that if your basics and fundamentals are not clear or you do not have a profound knowledge of the subject matter naturally the trades will not earn you any profit.
Many people do not understand the rules of the game. In the dream of reaping huge profit overnight, they keep on committing the same mistake repeatedly. Traders do not understand that they have to spend adequate time to learn the ropes and succeed in the long term.
Usually, newbie traders believe in tips provided to them from unknowledgeable investment consultants. Thus at the end of the day when the stock has to be squared up, the traders have no option except to sell it at a loss. Hence, when things like this happen repeatedly traders lose confidence and start playing safe. It, in turn, reduces the profit margin and thereby is at loss of the whole purpose of intraday trading. Traders who have deep pockets should go for intraday. If you have shallow pockets then sustainability is low.
You have to be very cautious about the timing during intraday trading. You must never miss the entry as well as the exit points. You must also decide at what price you have to enter and exist before buying any stock. Once the stock price rise reaches the predetermined price or the prices that you have decided upon one should book profit and exit. You must also use stop loss and adhere to it.