This will help you to know how to select stocks for intraday trading? Intraday trading is very risky. Even after being so risky, people do intraday trading. The reason for doing intraday trading is that people get profit everyday. People do intraday trading to make daily income without knowing the risk of intraday trading.
There is profit in intraday trading but you should trade knowing the risk of intraday. Today I am going to tell you how you should choose socks for intraday trading.
Today I am going to tell you how you can select stocks for intraday, it is necessary to identify the best intraday stocks while making such investments, as it involves relatively high risk.
Highly Liquid Stocks
While choosing intraday stocks, you should keep in mind whether the stocks have liquidity or not. Choosing Stocks Without Liquidity Can Lead You to Loss. Equity shares of small and mid-cap companies can be easily bought and sold.
If the 52-week high and low values also become a part of your selection, then choosing the stock will become even easier. With the help of this, you get to know about the true value of the stock.
Higher Trade Volume
Which stock are you choosing for intraday trading? You should also keep an eye on the volume of that stock. Whichever stock has more volume. There is no gap in demand and supply.
With the help of volume, you can understand that stock. In such cases capital appreciation gains can be earned through both buy and sell transactions.
Best intraday stocks tend to possess medium to high volatility in price fluctuations. Generally, market value fluctuations of more than 3% should be avoided while performing intraday trading, as the possibility of incurring a loss is huge in case of an adverse downturn in the stock market in an economy.
How to Select Stocks for Intraday Trading?
With the help of the above information, you must have come to know very well how you can choose stocks for intraday trading.