How To Select Stock For Intraday
Beginner’s guide to trading
The purpose of intraday trading is to profit from the price changes in the market in quick successions. Intraday traders don’t hold their position overnight.
Choose Liquid Stocks
Highly liquid stocks ensure significant price movements during the day. These stocks enjoy high demand.
Avoid Volatile Ones
Don’t confuse liquidity with volatility. Liquid stocks are high volume stocks. Avoid low volume, low cap S, T, and Z category stocks for intraday.
Gainers Vs Losers
Stocks that belong to the top and lower segments usually have good movement and hence, suitable for intraday.
A good intraday trading strategy is to select stocks with a solid correlation to sector and market index.
Stocks Widely Owned
Stocks that are widely owned by traders are a good pick for intraday. These tend to be less volatile.
Tick-spread = Volume
A tick denotes the minimum gap between two orders. A healthy volume in each tick indicates a good trading opportunity.
There is no alternative to good research - study charts, learn technical trading, and build a good trading strategy for intraday.