How do you select stocks for next day for intraday trading?

How do you select stocks for next day for intraday trading?
Do you look for particular breakout or crossovers of any technical indicators?

Study technical analysis and you’ll find out yourself.


I have studied TA and been swing trading for a while now.
I think the mindset, strategies and selection criteria of Swing and Intraday differ. That’s the reason I asked the question.

As an intraday trader, you take a position on a stock and square it off before the end of the trading day. When you place an intraday order, you must square off the position mandatorily on the same day. Therefore, choosing the right stock is important. Here are some tips to help you select stocks for the next day for intraday trading:

• One of the first things that you need to look for is the stock’s trading volume. Prefer stocks with high trading volumes as it indicates high liquidity. This makes it easier to buy large volumes without impacting its price. Also, make sure that you look at the historical liquidity levels at various price points.
• If a stock has low liquidity and high volatility, it can be counterproductive to trade in it. This is because despite having large price movements, most traders cannot capitalize on the gains due to low liquidity while the downside still stays large.
• Prefer stocks that have displayed a strong correlation with major stock indices. This makes the stock reliable, and you can predict the stock price direction with relative confidence.
• Go with the flow. Many intraday traders try to predict a change in trend and bet on it. While this might yield good returns, the risks are too high. Typically, betting in the direction of the trend is considered to be a better strategy.

Remember, day trading has various risks associated with it. So make sure that you create a trading strategy and choose stocks that are in sync with your risk tolerance levels.

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