Intraday trading requires traders to stay on their toes and pay attention to the finer aspects of the market as it involves fast-paced market speculation. This is because this form of trading requires traders to open and close each of their trades within the trading hours of a single day. To increase the chances of success, it is important to follow smart strategies to pick stocks for trading.
To help traders like you get started, Angel One has tons of educational resources available on their website that are designed to help you learn about the markets & trading strategies to take your trading game to the next level.
Continue reading to understand some suggestions for stock selection by that will help you take informed trading decisions.
Intraday trading gives you an opportunity to earn a high profit but at the same time, it is associated with a lot of risks. But trading in the right stock helps you in maximizing your profit and reducing the risk.
To help you with the stock selection for intraday trading, here are some of the smart strategies to pick stocks. Follow them and increase your chance of earning profit.
1. Only Select Liquid Stocks – Selecting stocks that are highly liquid is a key aspect of intraday trading. Liquid stocks are those that feature high trading volumes owing to which it is possible to purchase and sell a greater number of stocks without their price being majorly affected.
Checking the liquidity of stocks at different price levels is important as well as it can help you purchase these stocks at the appropriate time.
2. Avoid Volatile Stocks – One of the smart strategies to pick stocks is to check the volatility in the stock. A certain degree of volatility is to be expected within the market and is indicative of it being active and providing the potential for profit.
That being said, stocks that may show volatility owing to major news can be unpredictable and shouldn’t be used for intraday trading.
While there are no hard and fast rules, most intraday traders view stocks that have a 3 to 5 percent price movement on either side to be the best stocks for intraday trading.
3. Learning from Knowledge Centre – Angel One’s Knowledge Centre allows you to pick up the skills needed to identify appropriate stocks to select as an intraday trader.
This platform’s knowledge bank is split into varied modules that help shed light on trading (and investment) concepts as well as terms, practices, and strategies that allow you to make wiser intraday trading decisions.
Further, beginners can take advantage of the specialized intraday guide available here. It is also possible to understand the time & technical analysis and how to read different indicators.
4. Follow the Trend – A general rule of thumb followed by most intraday traders is that moving with the trend is beneficial. In instances of a bullish market, intraday traders should be on the lookout for stocks that have the potential to rise.
Conversely, in instances of a bearish market, intraday traders should pinpoint stocks that are set to decline.
One-Stop Centre for all your Trading Needs
If you’re uncertain about intraday trading, want to brush up your skills or are a seasoned trader who simply wants access to more resources, simply visit the Angel One website today and learn smart strategies to pick stocks.
A variety of resources are available here to help you navigate the stock market. Visit the website today and kick-start your trading journey.
This blog is exclusively for educational purpose
Investments in securities market are subject to market risk, read all the related documents carefully before investing.