Stock Selection for Intraday Trading

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How to Select Stocks for Intraday Trading

In this article, I am going to discuss Stock Selection for Intraday Trading i.e. How to Select Stocks for Intraday Trading in detail. Please read our previous article where we discussed how to make your own day trading scanner step by step. As part of this article, we are going to discuss the following pointers in detail which are related to stock selection for intraday.

1. Rules for stock selection
2. 3 stock selection methods
3. With live example

Why do most traders fail to pick the right stock?

1. They pick randomly on tips from social media or news
2. They don’t prepare before the market open

Rules for Stock Selection in Intraday Trading

Price Structure = Trend (avoid ranging market)
Trade active stock=high volume and high open interest build up (smart money active on these stocks)
The momentum of stock = Strength & Continuity of the move (previous day candle)

Stock Selection for Intraday Trading types

1. Breakout trading
2. Momentum trading
3. Pullback reversal trading

How do select stocks for intraday trading?

Generally three methods of stock selection for intraday trading

1. Aftermarket closed
2. Live market stock selection
3. News or result-based stock selection

Aftermarket closed

Aftermarket closed stock selection

1. Based on the end of the day (EOD) data
2. Based on breakout

Based on EOD data

Here we have to select stocks based on

1. High volume
2. High Open interest
3. Top gainer and top looser

Step to find high volume, high open interest, or top gainer/loser stock

Step1 We have to find out stock that showing increasing in open interest with increasing volume at the end of the day (EOD). Suppose we find some 10 stocks with both bullish and bearish data from our scanner

How to Make Your Own Day Trading Scanner

Step2 then we check where the action happening in the chart
Step3 if price action also indicates bullish or bearish behaviors then we keep it on our watch list. If the index and sector indicate positive. we prefer only bullish stock
Step4 aftermarket open if our system tells us to buy then we will go long in that stock

Let’s do with an example

Based on breakout

Time frame hourly or daily

The breakout means price breakout from any

1. Support or resistance
2. Trend line
3. Chart pattern

This method takes time. As we have to find out manually in our chart

Chart Patterns like

• Rectangle
• Wedge
• Triangle
• Flag
• Cup & Handle
• Tight trading range

Live market Stock Selection For Intraday Trading

There are two methods to select stocks from the live market

1. Pre-market stock selection for intraday trading
2. After 15 of the market open

Premarket Stock Selection For Intraday Trading

• First, select FO stock
• Check market sentiment(Check advance-decline ratio )
• Generally, I trade only gap up or gap down stock from pre-market stock selection
• Pick a stock and check-in chart

Let’s do it with an example

Live Market Stock Selection

After 15 market open find
Step1 find the Top gainer /looser from the NSE site
Step2 Check the premarket volume
Step3 see the last 2/3 days’ activity and draw the support and resistance line
Step4 wait for the pullback to entry(pullback entry strategy)

News-based/result based(no technical analysis work)

We get the news from the MONEY CONTROL APP

1. WHAT CHANGES WHILE YOU ARE SLEEPING
2. STOCK IN NEWS

Here, in this article, I try to explain, How to Select Stocks for Intraday Trading with examples. I hope you enjoy this Stock Selection for Intraday Trading article. Please join my Telegram Channel and YouTube Channel as well as my Facebook Group to learn more and clear your doubts. Please watch the following video if you want to learn and understand this concept in a better way.