The big question which pops up in the mind of each and every Intraday trader is that “How to find the stocks which are suitable for Intraday trading. Right selection of Stocks is key for the success in Intraday trading. Many factors should be taken into consideration while selecting the stocks. There are thousands of listed shares, but all of them doesn’t qualify for Intraday trading.
a) High volume shares:
The main criteria to be observed while selecting the stocks are its volume. Volume is nothing but the number of shares traded in an entire market during a given period of time. Its always advisable to select such type of stocks which has high volume. Because such shares will be useful for fast entry and fast exit.
b) Watch out for the stocks of the day.
With the breakout of some important news, certain stocks will be expected to move in either direction with good support of volumes, such shares could be utilized for Intraday trading.
c) Seven days movement:
Observe the stocks which are continuously closing in positive and negative for last seven days. You can utilize these stocks for Intraday trading only after you analyze their further direction. Properly monitor those stocks and then decide your trades.
d) Resistance levels:
The stocks which have broken major resistance levels and moving in upward direction will be the favourite stocks for Intraday trading.
e) Trading on specific shares:
Some of the Intraday traders, trades only on specific shares. Its mainly because they would have studied their movements and will be aware of their movement. Even you can share on some specific shares, but for that you have to analyze those shares for days or weeks, before trading on them.
f) Keep an eye on top gainers and top losers:
Market participants react to the shares which comes under top gainers and top losers list. They are capable of providing some good movements. But its very important to have watch on them before entering into the trade. Take the position only after analyzing their direction.
Ultimately individual traders study and logic plays an important role in the selection of the stocks for Intraday trading. Since the Stock market is volatile, its very important to enter and exit fast from trade. Try to make small profits and do multiple trades. If you are still not sure about the stock selection, then you can take help of the good stock advisory company which provides sure shot Intraday tips as well as suggestions on stocks.