Hey there! I noticed you’re getting into intraday trading. It’s an exciting world, but it can be quite challenging, especially when it comes on how to select stock for intraday.
Yeah, I’ve been doing some research, and there’s so much to consider when it comes to stock selection. I’m a bit overwhelmed, to be honest.
Don’t worry, we’ve all been there. Stock selection is a critical part of intraday trading, and making the right choices can make a huge difference in your success. Let me share some guidance on how to choose the right stocks for intraday trading, especially tailored for beginners like you.
That would be awesome!
Great! I’ll do my best to simplify the process of “how to select stock for intraday” for you. So, where do you want to start?
Choosing the Right Stocks for Intraday Trading (Guidance on stock selection for beginners)
Hey, wait, if you are new to the trading world, I would recommend you to check How I selected the best stock broker among the 7 best stock brokers in India 2023
Key Takeaways on How To Select Stock For Intraday
Intraday trading involves rapid buying and selling within the same trading day, profiting from short-term price fluctuations.
Factors to consider include liquidity, volatility, corporate events, market and sector trends, momentum, and technical analysis.
Utilize resources like Google Finance, Yahoo Finance, TradingView, CNBC, Bloomberg, and Google News for stock data and market insights.
Understanding Intraday Day Trading practicallyÂ
Before we delve into the process of selecting stocks for intraday trading, it’s crucial to understand the basics of this trading strategy:
What Is Intraday Trading?
Intraday trading involves the rapid buying and selling of stocks within the same trading day. Traders aim to profit from the short-term price fluctuations of stocks, taking advantage of both upward and downward movements.
Also check: How To Do Intraday Trading in India For Beginners 2023 | Free Resources
How To Select Stock For Intraday
Factors to Consider While Selecting The Stock For IntradayÂ
Day Frame for Trading
Intraday trading involves buying and selling stocks within the same trading day. The chosen stocks should have price movements that can be exploited within this short timeframe. for “how to select stock for intraday” Look for stocks that exhibit significant price fluctuations during the trading day.
Must check : Best Time Frame for Intraday Trading? Intraday Trading Time Analysis
Corporate Events
Corporate events like earnings reports, product launches, or mergers and acquisitions can have a significant impact on a stock’s price. Traders often consider the timing of such events when selecting stocks for intraday trading. It’s essential to be aware of the earnings calendar and other corporate announcements that could affect the stocks you’re trading. how to select intraday stock.g
Examples of corporate events – Quarterly results, Yearly results, Dividend announcements, Bonus issues, Mergers & acquisitions, etc.Â
Liquidity and Volatility
Liquidity refers to the ease with which a stock can be bought or sold without affecting its price. Highly liquid stocks are preferred for intraday trading because they allow for quick entry and exit. Volatility measures the price fluctuations of a stock. Intraday traders often seek stocks with higher volatility, as it creates trading opportunities, but be mindful of the associated risks. How to select stock for intraday.
If you want to know my secrets for intraday trading in volatile market, then must check these secret tips: Intraday Trading Secrets for Beginners in Volatile Markets in 2023
Highly liquid stock examples: Usually, large-cap stocks are highly liquid. Some of the highly liquid stocks are listed below:
- Reliance
- IndusInd Bank
- Axis Bank
- Auro Pharma
- HDFC Bank
- Yes Bank
- Infosys
- Tata Steel
Market Trends and Sentiments
Monitoring broader market trends and sentiments is crucial. Positive or negative market sentiment can influence the direction of individual stocks. Understanding the overall market trend and sentiment can help you make informed decisions about which stocks to trade. Intraday stocks for today.
Best 7 Intraday Trading Tips for Success : Master Intraday in No Time
Sector Trends
Different sectors perform differently in various market conditions. By focusing on sectors that are in an uptrend or show strength, you can increase your chances of selecting stocks with potential intraday opportunities. Knowledge of sector-specific news and events can give you an edge.
Sector trend for stock market : Sector Wise Performance ScreenerÂ
News-Based Stock Selection
Stocks that are in the news or are experiencing significant price movements on a particular day may present intraday trading opportunities. You can find a list of such stocks by visiting financial news websites like CNBC, and Bloomberg, or using Google News with specific keywords related to stocks and market trends. Various company news like Earnings Announcements, Changes in the CEO or Key Member of the Company, Mergers and acquisitions, etc., move the stock prices quite a lot.Â
If the company announces that it has made a good amount of profits during the year, the stock prices of that company are likely to rise, and if the company announces that it has suffered losses during the year, the stock prices are likely to fall. How to select stock for intraday.
(Scroll down to check the news based resources you can use for “how to select stocks for intraday”)
Top Gainers and Losers
Keeping an eye on the top gainers and losers of the day can provide insights into stocks with significant price movements. Many financial news websites and stock market apps provide lists of top gainers and losers, which you can access easily through Google. Intraday stocks for today.
You can track daily top gainers and losers here : Top Gainers and Losers NIFTY 50
Stock Selection Based on Technical Analysis
Technical analysis involves studying price charts, patterns, and indicators to make trading decisions. Intraday traders often use technical analysis to identify entry and exit points. Common technical indicators include Moving Averages, MACD, Bollinger Bands, and support/resistance levels. These tools can help you make more precise trading decisions based on historical price data and select Best intraday stocks to trade.
Resistance Level
Resistance levels are price points at which a stock tends to encounter selling pressure. Identifying these levels is crucial for setting profit targets and managing risk. You can use technical analysis tools and charts available on most trading platforms to identify resistance levels. how to select stocks for intraday. how to select intraday stock.
Moving Average Breakout
You can track stocks that are moving above or below the Moving Average Line, wait for them to break the line, and take the position accordingly. Intraday stocks for today.
How To Make Money Trading With Candlestick Charts?
How To Select Stock For Intraday One Day Before
Here are some genuine online resources for “how to select intraday stock” that you can use to gather the necessary information for selecting the best stocks for intraday trading:
- Google Finance: Google Finance provides real-time stock market data, historical charts, and news related to stocks. You can easily find stock prices, volume, and other relevant data.
- Yahoo Finance: Yahoo Finance offers comprehensive stock information, including historical price data, charts, volume, and company news.
- TradingView: TradingView is a popular charting platform that allows you to analyze stock price charts, apply technical indicators, and identify resistance levels and trends. You can also check 5 Best Indicators for Intraday Trading in TradingView Free
- Bloomberg: Bloomberg offers in-depth financial news and analysis, making it a valuable resource for intraday traders looking for the latest market developments.
- Google News: You can use Google News to stay updated with the latest news related to stocks and market trends. Set up custom news alerts with specific keywords to receive real-time updates.
Conclusion on How To Select Stocks For Intraday
By considering factors such as liquidity, volatility, corporate events, market trends, sector trends, and momentum, you can enhance your ability to identify stocks with the potential for intraday opportunities for how to select intraday stock. Additionally, the resources available online, including stock data on platforms like Google Finance and Yahoo Finance, financial news from CNBC and Bloomberg, and charting tools like TradingView, can be invaluable for gathering essential information. Intraday stocks for today.
