How Retail Traders Lose Money Intraday — Trading Options

Chart insights + trading psychology • Rajkamal Stock Options

Why Retail Traders Lose Money Intraday

Intraday trading in options is one of the fastest ways retail traders burn capital. Based on my attached chart, here’s what usually happens:

• Chasing false breakouts above resistance (~81,035).
• Buying calls when momentum (AO -56.96) is bearish.
• Overreacting to oversold signals (Stochastic near 18).
• Buying far OTM options with high theta decay.
• No predefined stop-loss or exit rules.

Checklist to Avoid Intraday Losses

• Confirm trend with VWAP + momentum indicator.
• Trade liquid strikes only.
• Risk max 1–2% of capital per trade.
• Use defined-risk spreads instead of naked calls/puts.

Takeaway

Intraday success = discipline + risk control. Avoid overtrading, chase confirmation, and treat options as a high-risk tool.

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Chart Snapshot

• Open: 80,680
• High: 80,782
• Low: 80,608
• Close: 80,744 (+0.09%)
• Resistance: 81,035
• AO: -56.96 (bearish)
• Stoch: 18/27 (oversold)

Disclaimer: This article is for education. Not financial advice.

Tags

#OptionsTrading, #IntradayTrading, #StockMarket, #BankNifty, #TradingMistakes, #DayTrading, #RetailTraders, #TradingPsychology, #RiskManagement, #StockMarketTips

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