How to select stocks for day trading

Published: 20th January 2012
Views: N/A

Stock selection for day trading
• High volume shares in real time during market hours
• Breakout and Breakdown shares
• Stock to watch daily
• Shares continuously up and down for last 7 days
• Shares broken major resistance levels
• Top gainers and losers
• Stock Lover
• How to act on above stock selection methods
here are around thousands of listed companies at NSE and at BSE.

So all listed shares qualify for day trading?
The answer is NO.
Then ….How to find shares which are suitable for day trading?

Following two important criteria has to be met by the shares to qualify for day trading.

1. High volumes
2. Large market participants

Because above factors make fast entry and exit from trades.

So based on above factors there are various methods for selection of shares for day trading but in fact shares selection for day trading depends on traders how they plans their strategy for day trading.
There are around thousands of listed companies at NSE and at BSE.

So all listed shares qualify for day trading?
The answer is NO.
Then ….How to find shares which are suitable for day trading?

Following two important criteria has to be met by the shares to qualify for day trading.

1. High volumes
2. Large market participants

Because above factors make fast entry and exit from trades.

So based on above factors there are various methods for selection of shares for day trading but in fact shares selection for day trading depends on traders how they plans their strategy for day trading.


High volume shares
Such shares are useful for fast entry and fast exit by taking small profits.
To locate high volume shares please go to Intraday stocks - volumes



Breakout and Breakdown shares
Breakout shares
Shares whose price increases sharply with support of high volumes are called as breakout shares.

Breakdown shares
Shares whose price decreases with support of high volumes are called as breakdown shares.

To have a look on break out and break down shares please Go here



Stock to watch daily
We daily update specific shares which have certain news and are expected to move in either direction with good support of volumes, so such types of shares can be utilized for day trading.
Please visit at below link to have a look on Stock to Watch Today
To watch Stock of the Day please visit here



Shares continuously up and down for last 7 days
Shares which are continuously closing in positive and negative for last 7 days are mentioned at below link.
These shares can be utilized for day trading only after analyzing their further direction.
The shares which have closed up in last 7 days may continue their journey or may enter into profit booking phase so traders should monitor them appropriately and then decide your trades.
For such type of shares please Go here



Shares broken major resistance levels
Please Go here where you will find stocks which have broken major resistance levels and moving in upward direction.



Top gainers and losers
Shares coming under top gainers and losers list may have some certain attraction from market participants due to which they provide good trading opportunities or for short term investing or for future derivatives traders.

The shares coming under this category provided good movements but you have to keep watch on them before entering into the trade or investing for short term.

Because yesterday’s top gainers may continue its upward journey or go in profit booking phase so traders or investors have to check the volumes and direction and then take their position. So its all depends how market participants react.

For daily top gainers and loser’s please Go here

For weekly top gainers and losers please Go here

For monthly top gainers and losers please Go here

We also in process to publish real time hourly top gainers and losers during market hours


Stock Lover
Some day trades are stock lovers means they trades only on specific shares on daily basis because they have studied their movements and are well aware how they move when market moves up and down.
To become stock lover it is important to analyze the specific shares for couple of days or weeks before start trading on them.
How to act on above stock selection methods
Important criteria
The day trading requires fast entry and exit from the trade so it has been observed that high priced shares provide good momentum to enter and exit as compared to low priced shares.
But after all it depends on individual trader’s study and logic, which share should be chosen for day trading.
So choose your day trading shares based on your own confidence and understanding of share movements.
It is very important to enter and exit fast from the trade because no one knows what is going to happen in next movement in share market.

Take small profits and do multiple trades.
To learn about this technique please Go here

Avoid over trading especially, if you are new comer to share market and to day trading
To read how to prevent high risk by avoiding margin trading please Go here

If you are looking for more information to do successful day trading then please visit our “Day trading section” on home page


Report this article Ask About This Article


Loading...
More to Explore