Hoe do you select stocks for day trading?

Trading
1

Am a newbie trader/ investor and in the process of learning through making losses.

I have read that for day trading, stocks with low to medium volatility should be selected. I understand that there’s a daily volatility chart available on the NSE India website.

I’d like to know how much volatility % do you guys take into account while choosing stocks for day trading? Or do you not consider this into the equation altogether?

Please advise on how you traders go about selecting stocks for intraday.

Thank you

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2

95% day traders make a loss. Been trying since 3 years now. Day trading gives you 100 Rs and takes away 1000 Rs.

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3

100% agreed

4

I suggest this to nearly every beginner. There is one fundamental to stock market - Learn about it. Well, it wonderful if yu are not emotionally bounded with stock losses as a beginner should be prepared for some loss.

It acts a first step in the process of becoming a good trader. There are some best ways to pick stocks for Intraday Trading and become a full-time trader.

Here are some key rules when you select stocks for Day trading -

  1. Trade Only in Liquid Stocks.
  2. Stay Away from Volatile stocks
  3. Trade in good Correlation stocks.
  4. Follow the Market Trend before deciding the right stock
  5. Pick the stock you are most confident in after Research.
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5

Thanks. Could you kindly explain what you mean by Correlation stocks and also what should be the daily volatility % of the stock selected for day trading?

6

While many people in the market believe that it is okay to lose money as a rookie trader, I have a contradictory view.

The thumb rule of any trader or investor irrespective of trading experience is to safeguard the capital, once you are able to trade and sustain in the market without draining your capital, you can think about returns, drawdowns, beta, etc

Now coming back to your question, how to select stocks for day trading?

The answer is very simple, it is manually impossible to keep a track of 1000s of stocks across all sectors, a wiser way to go about with such a situation is to build a strategy and have a plan. Once you have a fixed plan, you can always use a scanner

For if you do not know what a scanner is, Scanner helps you pick out stocks by automatically scanning all the stocks based on your strategy or plan.

For eg: I want to buy a stock that has just closed above a 50day moving average. I can put this condition on any scanner and it will automatically scan all the stocks across all sectors in a matter of seconds and give you the list of stocks that is meeting this condition. You can then, evaluate whether you want to trade or not.
You can also take a demo of Streak.tech by Zerodha to see how scanners work.

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7

Thanks for your reply

I know what scanners are and have created a couple of them at chartink. I just wanted to know what parameters should be set in order to be able to take high probable trades

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