Stock Selection For Intraday Trading

 



The most important step of intraday trading is identifying the right stocks. A day trader requires stocks that have adequate movement on the exchange and at the same time are easy to predict their direction to move. The success rate of intraday traders is only 20%. Most traders fail to find the right stock as they pick stocks randomly and don’t prepare before the market opens.


For stock selection main rules are:


  • Trade liquid stock in terms of high volume and high open interest

  • Refer to the momentum of stock; strength & continuity of the move based on the previous day candle

  • Avoid ranging market

  • Filter stocks based on percentage, rupee value movements

  • Prefer stocks grouped by market trends and indicators

  • Categories stocks as strong or weak according to the correlation with market


To succeed as an intraday trader, you can analyze shortlisted stocks further to identify trends to make entry and exit strategies after identifying the right stocks.


See also: Demat account


Let us discuss these rules in detail in this guidepost.


Also read:- How to Plan An Effective Long-Term Trading Strategy?

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