How to pick up the best intraday trading stocks  

 How to pick up the best intraday trading stocks  

Intraday trading is a quick way of making money. However, it is also important to have a good understanding of the various aspects of intraday trading including the ways to identify the best intraday trading stocks. Trading in the wrong stocks result in massive losses irrespective of the trader’s knowledge of trendlines, indicators, moving averages, etc. Thus, it is important to pick up the correct stocks for intraday trading. Some of the methods as suggested by HQBroker Review have been mentioned here.

Going with the current trend

The market trend Intraday Trading Tips has an important role to play in picking up stocks for intraday trading. In case of bull market the trader needs to select the stocks which can rise while in case of bear market, the stocks likely to fall must be selected. Intraday trends undergo reversals and do not remain the same for the entire trading session but one or two trades can be done before the reversal happens. As soon as the dominant trend shits, trading needs to be switched over to the new trend.

High average daily volume

The minimum volume requirement in case of intraday trading varies from that of swing trading. The minimum average daily volume of a stock for intraday trading should be 1 million shares. In other words, the trader must look for high volume stocks in order to reap profits.

Track the news

Intraday traders need to find out the stocks which are showing some amount of volatility. Thus, finding out the names of the stocks which are active due to FDA announcements, earnings reports, economic data releases and other factors by monitoring the news helps in making a list of potential day trades and picking the best ones.

There is no single strategy to get the best intraday trading stocks. However, HQBroker Review breaks down the basic strategies into the following parts.

  • Going for stock with high liquidity, medium volatility and correlation with sectors and indices.
  • Charting market waves.
  • Correct entry and exit strategies.

 

Categories: Finance

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