How to find Stocks for Intraday Trading
What to look in a Stock for Intraday Trading ?
1. High volume , high liquidity.
2. Hot & Happening sector.
3. Trending market.
4. Make sure that at whatever price you are entering in a stock, the move is not over already. I mean the stock has steam in it.
Keeping all these things in mind look for stocks which fall under these basic rules. Now calculate Stop Loss (SL), Target (TG) and do basic technical analysis (like support, resistance, overbought, oversold e.t.c)
Learn the technical analysis of the charts for intraday or swing purposes check the tips given by advertisers on various sites like valuenotes.com, icicidirect etc. counter check them with your studies and then take the decision. Do not work on tips untill you yourself have studied and analyzed them. It is good to select stocks for intraday for the sectors you have already picked up or traded before. All you need to do is refine them on your own study. If you do not find them good based on your study just reject them. Also try to analyse the point where the tips goes strongly right and at that point try to note what cnditions met for that movement. It will enhance you skill.
The major problem which most of the people encounter is that they are able to find high volume stocks and can apply macd,rsi,SSO,EMA cross over etc. to it, but they are not able to find stop loss and target because finding it in a normal way takes lot of time and in that time, many time trend will be over. So, here are some other methods for you.
Methods to Find Stop Loss and Target
I suggest you to regularly use the stop loss for whatever time frame you trade, the reason being that the indian market is very much volatile indeed the most volatile market where we dont know when the major reversal can occur and all your indicators can go wrong.
In my opinion you should keep the stoploss based upon you entry point + the total Percentage of your amount you can afford to loose in one trade.
1. The simplest method for Stop Loss in my opinion is to keep the trigger at 2-3 points below the last low or above the last high. According to MACD RSI OR STOCHASTIC you can place the stoploss at 2-3 points below the lowest or above the highest candle.
2. Choosing the risk is totally dependent upon you. Some Afford total risk of 1 % on their trade or some even 2-3 Percent. Depends from personality to personality.
But make sure that either the setup is good enough that Stop Losses are not hit frequently or better you keep Stop Loss much below i.e take higher risk only if the setup is not too good.
Now about the Target: what ever setups you create may it be stochastics, rsi or macd has it own exit strategy and that too on right point. The reason you are not getting much profit is because you havent mastered the strategy. Try to understand the working of these indicators and you will behave automatically on when to exit from trade and when to not.
So, this was an small effort from me for intraday traders to make them understand “How to find Stocks for Intraday Trading”. You can also read my article on “How to Start Intraday Trading“.
About the Author
CapitalVia Global Research Limited is Best Stocks and Commodity investment Advisory company in India. It provides recommendations or tips to invest in National Stock Exchange (NSE), Multi Commodity Exchange (MCX), National Commodities Exchange of India (NCDEX) etc.
Copyright © 2010 CapitalVia Global Research Limited. All Rights Reserved. Reprint of this article is allowed as long as due credit is given to the author and links are left intact.
Intraday Bollinger Trading
|
|
Intra-Day Trading Tactics [VHS] $69.00 … |
|
|
Intra-day Trading Tactics with Greg Capra [VHS] … |
|
|
Intra-Day Trading Tactics $29.95 … |
|
|
TRADE THE MARKETS with John Carter & Hubert Senters, Trading Stocks, Options & Futures In Both Up & Down Markets, Professional Traders Workshop $1,295.00 RETAIL $2495, 4-day day trading course with pro day traders John Carter & Hubert Senters. Review John Carter’s & Hubert Senters intraday online trading setups. Understand Trading Gaps,Moving Averages,Pivots in online trading,work with the TTM Scalper,buys & sells Indicator,Tick Fades,TTM squeeze Indicator Plays&Price Breaks,Learn how to make the right decision at the right time in the trading mark… |
|
|
Intra-Day Trading with Internals Part II $49.99 Intra-day Trading with Market Internals Part I and II are DVDs that the intra-day trader should not be without. In these DVDs, you will learn the all the internals needed and how to interpret them to successfully know what the current market environment bias is and in turn guide you to what yours should be. Most traders base their bias on their hopes and wishes for price direction, which is a comm… |
|
|
A Beginner’s Guide to Day Trading Online (2nd edition) $9.50 Day trading is highly profitable–and highly tumultuous. Moreover, the financial markets have changed considerably in recent years. Expert author Toni Turner gives you the latest information on mastering the markets, including: Decimalization of stock prices New trading products such as E-minis and Exchange Traded Funds (ETFs) Precision entries and exits The new breed of trader Written in an acce… |
|
|
Mastering the Trade, Second Edition: Proven Techniques for Profiting from Intraday and Swing Trading Setups $33.94 … |
|
|
Forex Price Action Scalping: an in-depth look into the field of professional scalping $33.35 Forex Price Action Scalping provides a unique look into the field of professional scalping. Packed with countless charts, this extensive guide on intraday tactics takes the reader straight into the heart of short-term speculation. The book is written to accommodate all aspiring traders who aim to go professional and who want to prepare themselves as thoroughly as possible for the task ahead. Few b… |
Related Articles
No user responded in this post
Leave A Reply