Intraday trading remains most popular for of trading. Over 50% of trading volume in exchanges are only in intraday trading . However its also a fact that most of traders make loss in intraday trading because they are not able to select stocks for intraday which are profitable. However thrill of trading and greed of quick money always bring thousands of traders everyday into stock markets. If you want to be profitable intraday trader , you need to have a clear stock selection methodology , risk management in place and psychological mind to properly execute your trading strategy. In this article we are going to have a look at how can you select stocks for intraday .
#1 : Select stocks that are in Trend
One of the best ways to pick stocks in intraday trading is to select stocks that are in momentum. Stocks that are in momentum or trend are likely to move fast and give good returns in short term intraday trading. Now question is how can you select stocks that are trending ?
Well you can do that easily by couple of indicators as well as price action basic strategies. SOme of ideal stocks which are likely to move will be
- Stocks that have broken 30 day high or low and are trading above /below it
- Stocks that have formed reversal candlestick patterns (like bullish engulfing or bearish engulfing)
- Stocks that are rising up continuously for last 3 days up or down
You can use Intradayscreener website and use range breakout scanner for such stocks which have broken range of last n days.
#2: Focus on High Volume stocks
Volume remains one of the best indicators for good price movement. Stocks which have good volumes in recent past will always be likely to do good in intraday trading . You can also check stocks which are having high delivery percentage and high volumes
You can see importance of all volumes here. After volumes starts to come in with price moves, new and new highs are forms. Such stocks are must watch to select stocks for next day.
To find such stocks , you can use Volume scans feature of Intradayscreener
#3 Focus on stocks which are top sector gainers showing good move in Intraday
If you want to select stocks for intraday trading , you can find stocks from sectors which are in top gainers. To see best sector , you can use Sector movers on Intradayscreener
Lets take an example to understand wy should you select stocks from sectors which are doiung good for day.
In above image you can see that PSU bank sector was trending throughout day. If you picks stocks from such trending sectors , its highly likely they will do well because usually traders and investors are active in particular sectors at given time. Example you should focus on PSU banks stocks in intraday if psu bank is top gainer sector at 10AM
#Keep on watch Top Gainers and Losers
Top gainers are the stocks which have gained or lost most among all the stocks in intraday trading. Remember if a stock goes from 1% in morning to 10% , definitely it remains in top gainer list . So keeping a watch on top gainers and losers at 10am in morning will help you to select stocks for intraday which are likely to go up