How to Select Stocks for Intraday Trading

How to Select Stocks for Intraday Trading

In this article, I am going to discuss the How to Select Stocks for Intraday Trading in detail. Please read our previous article before where we discussed how to make own day trading scanner step by step. As part of this article, we are going to discuss the following pointers in detail.

  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 trading

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

Stock selection for trading types
  1. Breakout trading
  2. Momentum trading
  3. Pullback reversal trading
How to select stocks for intraday trading?

Generally three method of stock selection for intraday trading

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

After market closed stock selection

  1. Based on end of 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/looser stock

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

How to make own Day Trading Scanner

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

Let’s do with an example

How to Select Stocks for Intraday Trading

Why do most traders fail to pick the right stock? Rules for stock selection

Based on breakout

Time frame hourly or daily

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

Stock selection for trading types How to select stock for intraday trading? After market closed Based on EOD data Step to find high volume ,high open interest or top gainer/looser stock Based on breakout Live market stock selection Premarket stock selection for intraday trading Live market stock selection for intraday trading Stock selection for intraday trading types Live market stock selection for intraday trading Rules for stock selection in Intraday trading

Premarket stock selection for intraday trading

Live market stock selection

There are two methods to select stocks from live market

  1. Pre market stock selection for intraday trading
  2. After 15 of market open
Premarket stock selection
  • 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 stock and check in chart
Let’s do it en an example

Live market stock selection for intraday trading

How to Select Stocks for Intraday Trading?

Live market stock selection for intraday trading

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

Live market stock selection for intraday trading

News based /result based(no technical analysis work)

We get the news from MONEY CONTROL APP

  1. WHAT CAHNGES 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 article. Please join my Telegram Channel to learn more and clear your doubts. https://t.me/tradingwithsmartmoneyPlease watch the following video if you want to learn and understand this concept in a more better way.

2 thoughts on “How to Select Stocks for Intraday Trading”

  1. Sir good evening. . Sharemarket started 2014 till now .not confidence buy or sell the trades. Not profits only loses.can you help me sir please.

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