Hey there,
I hope you are doing well.
I have question that are the following market leader in different sectors. This will sort out stocks among thousands of stocks in market for intraday trading.
Focus on strong price momentum on strong stocks…rather than running after only leaders without strong price actions. Most of the times investors and traders trap in losers for years.
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That correct focus on strong price momentum but not agreed with strong stocks as there are lot of them , Nifty 50 is full of strong stocks , but I don’t have more than 2 screens available currently including smartpone and laptop to look at different chart as well as I have one brain with two part and left iside of brain is dominanet and right side of brain is almost like dormant some time recharged with emotion but its okay it will we controlled soon. And I don’t focus on losses and regards anymore rather I will focus on chart and process and seek and create opportunity. Result will shine one day if focus in process. It’s all play of psychology and sub-consicous mind that restrict us to enter in field by realizing past incident . We will feel amazed if we focus on process.
My 2 cents.
Intraday trading is all about going with the trend, either stocks moving up or down, stocks which have huge volume for that session. So despite Nifty having market leaders, monopolies, on a trading day, they may not move either way, they don’t rise or fall, so I think it is better to look at stocks where there is action going on, up or down. This is the opportunity. Whether we will be able to win or lose in that stock is another thing.
If we don’t get entry on limited entry on selected stock then it’s okay atleast we will not face burden that what will I trade next as this you get in greed stage. Lots of breakout, breakdown happen on daily basis. If you don’t see in screener as they are limited to stock. Most of screener provide only upto 80% of stock available across stock exchanges. And going with trend is not crucial thing at all . At certain point we will se reversal too where technical analysis is handy. Having too many stock under table is better than on the table. And breakout stock with retest work well with swing trade. Limited stock inquire will have low risk ration then finding breakout stock which will have high risk.
That all the reason why I am asking what are market leaders for trading intraday.
My point is that for intraday, we need to go with trend either uptrend or downtrend. We need to go where the volume is, irrespective of if a stock is moving up or down, where traders are in those counters. And of course, we need to look at charts and take the decisions.
If for any reason, there is not much volume in the stocks of Nifty leaders, then we cannot trade for that day, or trade very little and also calculate the charges for such trades with less shares.
But for swing trading, trading in indices stocks is a better idea, than getting stuck with illiquid or pump and dump stocks, because if we don’t want to take loss for any reason, at least we can stay put for a while to see if the loss becomes less and then sell.
Rather than finding so many stocks how about just focusing on index ?
nifty and bank nifty
Majority of the trading volume in the market is Nifty and bank nifty derivatives. Liquidity therefore is not a problem (depending on strike).
Data available for index without any stock split hole issues. So easy to backtest.
Much easier to analyze and track an index compared to 5000 odd listed stocks in the exchange.
With stocks there is always someone who knows more than general public. Chance of getting operated is more compared to index.
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There are not so many stocks. For intraday, one can look at the top 10 gainers and losers in NSE and take a call. Although the stocks may move the opposite direction after we have initiated a trade. And obviously, we don’t trade in names that we don’t know much about or we have doubts about. And there will be stocks that are big which always rise or fall, with good volumes.
I am talking about only day trading.
Other points are fair but not this one. This may be your bias and theory but that does not make it true. High volume stocks trade fine and we have reasonably stable edges across a basket of stocks. ‘operator’ and manipulation fear is generally among people who don’t have edges so a bit surprising to see.
Another issue is high costs. STT is 2.5 times Futures in cash. Few other expenses are higher too. That adds up. Execution is generally tougher too as you have to look at various stocks rather than focos on one or two instruments.
If am a promoter of a company I will know more about my company than any one else in the general public. Same with people associated with a company in some manner - vendors, customers etc.
I just said the chance of getting operated is more than an index. Not that it is a certainty. May be bit of peep in to history would help.
As traders, it does not really matter. Even if info leaks, it reflects into price and demand/supply and trading edges will incorporate that. Better to assume all instruments are manipulated but that makes no difference to me. Manipulated against who ? There are different players with different positions.
Ultimately its about your edge = profits - losses and whether you can live with it. Manipulation fear is for people who don’t have edges.
What one can do ofc is compare edges in NIfty against those in stocks and decide that perhaps stocks are not worth it for him/her - or vv. Or perhaps trade both and get the benefits of diversification.
Well if one can stay away from stocks susceptible to pump and dump like schemes and one is fast enough to act upon price and volume triggers the edge you are talking about may be in a working zone.
how i can check Nifty and Nifty bank call and put Open interest during market hours ?
Want it free you can use Dhan web or mobile app. Opstra also shows but the feed is delayed for free plans.
i dont need free … need perfect data
Then use sensibull or opstra paid plans
ok thanks bro
Pump and dump is not relevant to short term trading in liquid stocks. Its no different to trading Nifty/BNF, just that its behavior is different and perhaps more noisy. Reversals happen ofc, and they happen in indices too.
This kind of thinking is similar to people calling option buying as a loser’s game and that selling always wins etc. In the end we need an edge that works over large sample. Anyway, that’s how i look at it.
Yes agree
Yes ofcourse and if you have been able to nail equity intraday trading just awesome.