How are traders selecting intraday stocks

Anyone who’s trading strategy is going to suffer the more people know it, obviously won’t share.

Whatever you’re doing, observe, if it works, it works, no further validation required.

If you think you’ve got something solid, perfect it with risk and money management, then look for more methods :slight_smile:

Not looking for validation or poaching strategies… just getting a general idea of how retail traders are approaching the market

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I choose intraday stocks based on the following criteria.

  1. Open = High and Open = Low
  2. Support and Resistance breach on daily chart
  3. Top Gainer, Top Looser and Most Active
  4. Familiarity with price action of some stocks.

Can you suggest some stocks for price action?

I think Nobody would share their secrets !
I would like to tell this much about mine. My technique boils down to observing price and volume data.
I have created my own set of formulas, process data daily and come up with stock selections. And then trade them manually.

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Hi All,
I would like to know where we can get the Companies announcement date information before they update their quaterly/annual updates.

For me, these are few stocks

  1. #DMART
  2. #CANBK
  4. #ZEEL
  5. #BEML
  6. #INDIGO

Ques : How to trade these stock after preparing a watch list based on

Some nice strategy has been discussed in this post.

I would like to know why PAGEIND options is not working? Is there any problem

Its very illiquid stock for option trading

I think due to high stock price, lot of people dont do option trading in it

For buying , you need someone to sell

For selling they need to understand proper price of selling. Which is difficult to do in such a Big priced stock.

Should they sell at 100, 200, 500? The gaps are big and buyers may not come even on a 100 point jump.

This is my take why its illiquid, maybe I am wrong also.

can you give more details…not your secrets but what do u mean when u say …‘observing price and volume data?’

Look for trending stocks - absolutely bullish or bearish. If the day is trending in either direction and if the scrip breaks prev day’s high/low, you will see magic happening.

For stocks that are sideways - supply and resistance works best.

On non trending days - demand and supply works best.

Have a robust system of risk to reward ratio, stop loss and dynamic trailing stop loss in place if you are doing intraday.

Here you have it my thought process for free…after 4 yrs of experience and after so many loss making trades. All the best!

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yash ?
Answer this question : What is the exact reason why price increases or decreases ? Why does the price move sideways ? What are those parameters controlling it ?

For a fundamentals investor, it is revenue/sales/profit margin of a company… and many other parameters.
If a company does some innovation which nobody else has then you can be sure that their company sales will increase and hence the stock price.

So from the point of view of data analytics what are those parameters (in price volume data coming out of exchange) which indicate a future price increase ? If you get this, you can be early to catch that delicious upswing. This is deeper than just “following price”.

All this does not mean that I have already mastered this technique. Far from it. But this is the path I tread. It is more rational way to make money from markets this way, than to draw some lines/circles on a chart which I think is more dependent on luck.

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I believe in homework …So after market closes look into daily volatility data and if any stock closes above 2% or below 2% it means there is a breakout the next day…As per my experience this is a good strategy

I have just shared the similar info in another question, How to select stocks for intraday trading

let me quote the same here

There are couple of methods I follow to select intraday trading stocks for the next day at the end of the market.

Intraday trading is all about quick momentum and small time duration. We cannot always trade on fixed set of stocks every day, we need to find out list of stocks that have shown significant strength or weakness. So to start with, I will first list down what are the top 5 gainers and top 5 losers for the day in NSE Fno segment.

This link will give you this data by EOD.

sharing some data analysis done for last 10 years data sets here, listed below is the return distribution, whenever a stock closed positive, how it reacted next day.

The below table, shows % returns for the day on left side and right side shows no of such occurrences. The same is shown in graphical representation below. It clearly shows that, next day returns are largely negative .

So a top gainer for today could be a stock to watch out for short the next day and vice versa for top loser.

Next is Volume Gainers :

I need to find the list of stocks that has show significant volume strength, we cannot simply pick top volume gainers for the day and trade on it next day. Stocks like RCOM, JPASSOCIATES might have more no of volumes and more % increase frequently. We need to to find whats their average volume and whats today’s volume, and then compare how much % it has increased when compared to its average volume.

I download EOD data for all NSE Cash and FnO stocks and calculate the above ratio, which will give me volume gainers list.

Next is Volatility Gainers :

Many traders tend to ignore the Volatility Gainers list, many institutional traders take positions in stock options and sometimes they unwind their positions or add more, and these indirectly results in increase in Volatility. For example, when a stock tanks in a day and also if volatility is increased exceptionally for this stock, it could mean that next day also, it can continue it momentum. So a stock that comes in Top 5 loser list and also in Volatility gainer list, is a very good candidate to trade next day.

So I download the daily volatility data from NSE and check what is the % change in volatility of each stock and sort them descending order and pick top 5 from this list.

As all these are time consuming process, I have created my own automated bot, that scan and do the analysis for me and message me this list automatically every day at 8 PM, so that next day I can be prepared to trade on it.

As these information are really help full, I have also started sharing this data for with other trades for free through Telegram, Twitter and FB.

source: National Stock Exchange of India Ltd.

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I don’t know why lots of people are not sharing their methods , If it is high liquidity stock , more number of traders following same strategy will have more the success.

Simple example is ORB strategy works most of the times because most of the people know it and all take same buy/sell when there was breakout.

Only since most people know fibonacci retracement , stock is moving to the pattern respectively , if it is holy grail and if only 2 or 3 people know it , do u think it will work ?

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But, isnt this like trading against the trend? What most authors keep asking traders not to do.

Thanks for including the backtest results, which proves your point.

What works in reality is sometimes the opposite of theories that are been taught to the crowd.

What could be the mass psychology behind this effect? The price moves opposite the previous days trend?

Do you mean daily time frame?

When I filter stocks for Intraday , I check out on these basic parametres -

  1. High Liquidity
  2. Medium to high volatility
  3. Mimicking the index
  4. Sectoral breakout is a good approach to filter out stocks
  5. Looking for other stocks in the sector when the leaders have started to move

I advice you to go forIntraday strategy that earns. Hopefully this will resolve all yoour queries.

In case you don’t want to learn then track your stock data with StockEdge app , a perfect app for stock news and analytics.