Top 5 Factors To Consider When You Pick stocks for intraday trading.

Juni 21, 2021Juli 16, 2022 Harshal Patil 1 Kommentar

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What are the features of stock when choosing stock for intraday trading in the stock market?

First of all, we discuss what is intraday trading?

Intraday trading is the buying and selling of stocks from the time the stock market opens at 9:15 a.m. to 3:20 pm.

Intraday trading is done by buying and selling shares within a day. But in this, the timing of the opening and closing of the stock market matters a lot.

As the market starts at 9:15 am, you may buy the shares of a publicly-traded company after the market opens.

Die stock market will close at 3:30 in the afternoon and the sale of the shares at the date of the trade, at 3:20 p.m, prior to the closing time on the exchange.

Even if you don’t sell the shares, the shares will be sold at the closing price on your account within a day of trading.

In order to participate in intraday trading, you need to set up your own account, because you will not be able to trade on the stock exchange without any trading account.

How to choose intraday trading stocks.

Choice of intraday shares will depend on many factors, such as the levels of the intraday experience, trading style, the amount of available capital, the investor’s risk tolerance, market conditions, etc.

This is part of the trader’s trading plan, but this process is dynamic and evolves from time to time as the trader learns from their experiences and understands their strengths and weaknesses.

The bottom line of any strategy used to choose intraday stocks is to keep the capital safe and control the risk.

There are thousands of stocks being traded in the market, and to an untrained eye this may all be too much, however, an experienced trader knows how to do proper research and choose the intraday stock that suits his trading. Be thorough in plans and strategies.

There are many programs and tools that can help a trader choose the stocks in various ways during the day, but the trader must use the list option on the stock, according to his own personal style.

Top 5 Factors To Consider choose intraday trading stocks.

1) High demand (liquidity)

There should be more buyers & sellers in the stock so that you can buy and sell the stock at any point.

The stocks that have more buyers & sellers have more volume so we can easily buy and sell stocks.

2) Price fluctuations (volatility)

“Shares that fluctuate more in the day of the span are called volatile stocks.”

The trader will only benefit when he buys the stock at a lower price and sells it at a higher price. So when choosing stocks for intraday trading, always choose stocks that are volatile and whose price fluctuates 3 to 5% daily.

3) Momentum In Stocks

“The rate at which a stock price changes over time is called the stock’s momentum.“

If the Momentum in the stock is good, then it changes the price of the stock in either an upward or downward trend. Such stocks are good for intraday trading.

This means that if the share price is rising every day, you can make money by buying it, and if the share price is falling every day, you can make money by short-selling it.

4) Market Trend

There are a lot of stocks that follow the market. This means that if the market is in an uptrend then the stock is also in an uptrend and if the market is in a downtrend then the stock is also in a downtrend. Example Nifty 50 stocks follow nifty index, not all stocks but most of them following it.

For this reason, such stocks can be beneficial for intraday.

For the trader, the trend is a close friend.

In fact, there are three brothers

1) Uptrend

2) Downtrend

3) Sideway trend

1. In the uptrend, the share price is increasing day by day.

2. In a downtrend, the share price is falling day by day, which means it is getting lower and lower.

3. In the sideway trend, the stock is passing time from place to place, neither rising nor falling!

5) Sector Trend

The stock market is divided into many sectors, including technology, automobile, oil & gas, FMCG.

Of these, stocks in the sector under discussion and those that are performing well are the best for intraday trading.

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Top 5 Factors To Consider When You Pick stocks for intraday trading.

What are the features of stock when choosing stock for intraday trading in the stock market?