Mastering the Art of Survival: Risk Management Strategies Every Intraday Trader Must Know

Author(s): Mamoon Rashid and Hashmat Shaikh

Abstract:

Intraday trading, characterized by the rapid buying and selling of financial instruments within a single trading session, presents extraordinary profit opportunities alongside equally significant risks. This article examines the multi-dimensional risk management framework that separates consistently profitable intraday traders from those who deplete their capital. Drawing on principles from modern portfolio theory, behavioral finance, and practical market microstructure, this paper presents a comprehensive risk management approach encompassing position sizing, stop-loss mechanics, risk-reward ratios, psychological discipline, and technological tools. The framework is designed to be applicable across equity, currency, and derivative markets.

keywords:
Intraday Trading, Risk Management, Stop-Loss, Position Sizing, Behavioral Finance, Risk-Reward Ratio

Pages: 88-91     |    40 View     |    1 Download