I see big % gainers both long and short side everyday. There are lot of up trending stocks even Nifty moving down/bearish. How to pick stocks to trade with trend for intraday. Can you please give more views on this. Best strategy or indicator to start day trading everyday.
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Everyday is a New Day in Intraday Trading.
Market Runs on Sentiments.
At 9:15 AM you will see Stock A is 5% Up And Stock B is 1% Up in Just Few Seconds You will See Stock A is 4% Up And Stock B is 6% Up.
Intraday is a game of Uncertainty. You never know What will happen next moment. Everything Looks good on Chart but very next moment Stock goes down and eat all the Stop-loss and make a day high in no matter of Time.
Intraday is full of Risk & Reward. You have to cut your loss and make a One Good Trade.
One Good Trade can Cover Loss of 2 bad Traders but only if you have cut your loss at Early in those 2 bad Traders.
Loss is a part of Intraday, you have to face it but try to cut as soon as possible.
Intraday have only 2 options either you Win or lose.
You Get only one opportunity in Intraday also there is a Clock ticking till 3:20 PM You have less time to be right as compare to Investors.
Let’s take an example:-
Both Trader using same Chart settings.
Trader:-1
He is experienced and having experience of 5 years in Intraday Trading.
There is Gap Up Opening And Stock is 10% Up.
All the Indicators are giving Buy signal But he knows the stock Sentiments and also know Price Movement of that stock very well.
He will use his experience and Sell the Stock because he know the Stock will not go above this there will be No fresh New Buying at this Higher levels. He also knows the Right time to Exit.
(This Guy also know the Potential of which stock to buy even the Stock is Gap-Up open )
Trader:-2
He is a fresher say 2-3 Months of Experience he will follow all the Indicators and Buy by seeing the Signals. And In no matter of time stock will drop very fast the time he will understand why stock is going down it will trigger his Stop-loss.
He keeps position open for more profit But In Just few Minutes These Profits turns into Loss.
(When This Guy Sell the The Stock when it’s Gap-Up open by just watching Technical Indicators again Stock goes Up and Trigger the Stop-loss)
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@sritrader You cannot look at Nifty and take positions in a stock. You have to look at the stock price and understand the price movement before you enter into a position, and use Nifty as a point of comparison only.
Understand the overall price action of the scrip you’re trading in, wait for the stock to pan out during the first 1 hour of the markets everyday, see where buyers and sellers are coming in, correlate this to the movement of the previous trading sessions, size your entry quantity in relation to your account capital, use indicators to facilitate your trade entry and exit, maintain stops, exit at your desired target/monetary gain, enter a trade again only if you notice a sure opportunity.
When it comes to indicators 
VWAP for intraday trend analysis, RSI/Stochastic oscillator for overbought/oversold regions, ema crossover/reversal patterns for entry and exit, pivots for support/resistance, Bollinger bands for volatility But do note that you are the greatest indicator for your trades because the above indicators are only facilitators for your trade while you are the indicator that determines how much quantity to trade, your monetary target for the day and also when to stop.
But you have to note that indicators only facilitate your trade, they are not the decision makers. You are the only decision-maker here and you have to spend time getting a grip of the overall stock scenario to have a more holistic trading experience.
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Ok thanks, I see stock price dragged down when Nifty in downtrend even stock in up trend. any idea how to handle this.
Problem with trading stocks is that stock price is affected by macro news, stock specific news, movement of sectoral index that the stock is part of, movement of nifty, technical levels of stock etc etc.
LOL that’s the only true thing which drives stocks movement. If some people think that stock is moving up because of some EMA crossover or RSI, then markets will show you the mirror!
Technicals only follow stocks price movement. Yes an EMA crossover of stocks price closing above 50 dma, 100, 200 dma can be considered as a positive indication. But technicals provide better judgment for long term time frame.
Markets rallied today because of a trigger, and the control of this trigger lies in the hands of FIIs.
I have been repeatedly telling that FIIs will never drive the markets against them!! Why will they?
Last 1- 2 days back, someone on this forum mentioned about FIIs bought good volumes & see today they broke the news. Pre planned game.
No technical indicator ever exists which could tell you that today sensex will rally some 450 points.
Rather a couple of technical analysts gave a recommendation to short nifty!!
Its a matter of seconds for FIIs to set the direction of our markets.
No matter the number of factors affecting the stock, all of this shows up only in one place - the stock price.
This calls for understanding price action = price movement + price patterns + volume for support. Indicators only facilitate your trading and it will work only after you understand the price movement in the stock. This could take a considerable amount of screen time to understand but if one does spend the time, then they’ll certainly start to understand how price moves.
Any thoughts?
Totally agree with you that “all of this shows up only in one place - the stock price”. But in my experience trading the index (nifty) itself is much more easier than trading stocks because individual stock news will not effect the index as much as it affects an individual stock. I find individual stock movement highly erratic and many times totally confusing. eg: Stock trend is up nifty trend is down should i buy the stock or go short ? Both nifty and stock trend is up we buy the stock some negative news in the stock comes up and the stock zooms down, so on and so forth.
Clarity of thought helps me a lot while trading. Stocks can give huge percentage gains once in a while but I prefer the index as it is much more stable and respects technicals like support and resistance, price patterns etc more often.
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Honestly, stocks don’t move erratically expect during the time when results are announced or when there is actually some news that comes out which was not known earlier.
Ideally one should only look at the stock movement while trading the stock and use the index as a reference point only to get a sense of the larger picture. Just like how you only watch the index while trading the index
This is exactly why they say we should trade according to our personality. What works for me may not work for you and vice versa. Also our individual experiences while trading also play a role in our choice.
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That is completely true. Amen to that!
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I don’t agree with the viewpoint that stocks move logically most of the time. Many scrips don’t really have much news inflow and are not major constituent of their sectoral index.
They seem to just hover in a small range and only correct during the results.
For eg. Exideind, kwality dairy