How to Select Stocks for Intraday?
5paisa Research Team
Last Updated: 08 Jan, 2025 05:40 PM IST

Content
- How to Pick Stocks for Intraday?
- What is Intraday Trading?
- What factors to consider while choosing Intraday Stocks?
- Intraday Stock Selection - Types of Strategies Day Traders Use
- Types of strategies day traders use
- Tips for setting limits for your losses in Intraday Trading
- Pick best stocks for Intraday Trading
- How to Select Stock for Intraday a day before?
- Conclusion
You must choose the appropriate stocks to trade in order to be successful as an intraday trader. After you've chosen a few stocks and ETFs, you may keep an eye on and analyze them more in order to spot trends. The patterns you see determine the entry and exit tactics. Let's examine some guidelines and important points to think about while choosing stocks for intraday trading.
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Frequently Asked Questions
To assess a stock's liquidity, check its trading volume, bid-ask spread, and market depth. High trading volume and narrow bid-ask spreads indicate better liquidity, making it easier to buy or sell.
Intraday stock prices are affected by news such as earnings reports, economic data releases, interest rate changes, geopolitical events, company announcements, and market trends or sector developments.
Best intraday trading option depends on your style but momentum trading and breakout trading are popular due to the potential for quick profits by leveraging strong price movements.
Your trade will be automatically squared off by the trader, if you don’t sell intraday share.
Making consistent profits using intraday trading is the main objective of most traders. Buying when the stock rises above the Opening Range high and selling when the stock moves below the Opening Range low is the finest day trading method you can use to accomplish this. Every stock establishes a range, called the opening range, during the first half hour of day trading. This range's variations are interpreted as resistance and support. Purchasing is advised if the stock movement is seen to cross the opening range high. In a similar vein, if stock movement is seen below the Opening Range low, you can sell.
The degree to which a stock moves in tandem with another stock or even an index of the stock market is estimated by its correlation. The correlation coefficient, scatter plot, rolling correlation, and regression analysis are used to determine the correlation of a stock.
The risks are following: inappropriate pick of stock, inappropriate timing for trading for picked stock, sticking to only one stock.