How to Select Stocks for Intraday Trading, Stock for Intraday, Intraday Stocks, Intraday, Intraday Trading Stocks, Stocks, Select Stocks
- Trade in Liquid stocks
- Filter stocks based on percentage, rupee value movements
- Look for stocks that follow market trends and indicators
Liquid stocks are those who have an outsized volume trading through the day. The single most vital criteria when choosing to trade intraday is to seek out stocks that are liquid. This is important for two reasons:
You can buy and sell large volumes without impacting the trend you would like to profit from.
The trades you line up have the potential to be executed quickly.
Intraday success depend on daily price movements. If you finish up trading stocks that have a sticky price, you’ll not find a chance to trade them profitably. Therefore, you’ve got to pick stocks that have a price movement almost a day .
You can filter the stocks supported movements either in percentage terms or the Rupee value of the stock. This filtration can typically offer you different sets of stocks. As a rule of thumb, experts suggest choosing stocks that move a minimum of 2% per day.
To succeed as an intraday trader, you must be able to predict the price movement in the short term. To improve chances of success, you’ll choose stocks that follow the trends and indicators. For example, if you would like to trade stocks from the IT sector, choose people who show a robust correlation with the INR vs. US$ movement.
TRADE WITH THE TREND:
While some traders concentrate on contrarian plays, most traders prefer and recommend trading in intraday with the trend. Meaning, an intraday trader has got to identify the waves of a stock exchange trend then attempt to ride on these waves. This can be possible by conducting intraday trading time analysis.
For example, if you see that the market is rising, you’ll attempt to select stocks that provide opportunities to require long (buy) positions. In contrast, during a falling market, traders can attempt to spot and take short positions where possible. The bottom line is to avoid challenging the market.