How to select Intraday stocks ?

The most popular question of any Intraday trader is how to select stocks for trading in a particular day. Many of the Traders believes that they need to select the stocks which will have maximum possibilities to provide upside or downside on a particular day. As per me, it is very difficult to predict or to choose the most movable stocks on intra-day basis as because you have to relay on the news and the speculation for such an approach which can be venerable. However most of professional do it on the other way.

In this context I will describe the process I follow. You will agree with me that we should select the stocks which will have most liquidity and most of the players attention. I always prefer index stocks on the same.

My approach is that , we need to chase six to eight particular stocks on regular basis to understand the nature of the stock, Byers and sellers activities, pattern they are forming, time to trade those stocks and its behavior.

You should take the most liquid and movable stock. To choose the same, I am describing an approach , you may follow.....

Firstly you should take one stock from each sector. I am giving an example for your understanding ( take it as an example.... you can follow the approach and do select stocks as per your preference).

Trader -1 may follow the below list

Infosys (IT sector)
Reliance (Oil, now telecom)
Asian paints (FMCG)
Maruti Suzuki (Auto)
Dr reddy's (Pharma)
HDFC Bank (Banking)
Bajaj Finance (NBFC)

Similarly Trader -2 may follow the below list

TCS (IT sector)
Reliance (Oil, now telecom)
HUL (FMCG)
Hero Motor corp (Auto)
Lupin (Pharma)
ICICI Bank (Banking)
L&T
Titan (Consumer Goods)

You can create such a list by yourself and you need to just concentrate on your stocks only, no matter if any other stock is giving a huge momentum you need to ignore them. If you can concentrate only on your stock list for few months and understanding in and out of each and every stocks of your list, you will definitely experience best result of your trading life.

Let me clarify how your list will provide the best result for you. Suppose in a particular day, Nifty50 is in uptrend; now two or three sectors has to contribute to the uptrend, suppose IT and pharma is moving the nifty, I am sure on that day the stocks you have selected from those two sector will move at least 2-4 % ; you just need to trade those two stocks on the same day following your money management, stop-loss and emotional discipline .

Similarly in case of downtrend the sectors are contributing the downward movement will make your money.

I have same kind of preferred stock list and that is helping me to make money. Do use this method for few months you will surely able get rid of selecting stock problem.

Happy trading and make money.........

Comments

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