Intraday stock selection in 1 minute
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Intraday Stock Selection Tips for Beginners
Intraday trading requires quick decision-making, especially when selecting stocks within a short timeframe.
Here are some quick tips from my experience that help you choose intraday stocks effectively in just one minute.
Focus on High Liquidity: Prioritize stocks with high trading volumes to ensure easy entry and exit positions.
Check Price Volatility: Look for stocks that have moderate to high volatility, as they offer better opportunities for quick profits.
Identify Trending Stocks: Scan for stocks with high price momentum and volume support to ride short-term trends.
Stay Updated: Stay updated on market news and economic events that can influence stock prices for intraday trading opportunities.
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Watch Pre-Market Data: Monitor pre-market data (gainers and losers) to identify stocks likely to continue their momentum into the trading session.
Set Clear Entry and Exit Goals: Make sure to have clear entry and exit points based on technical indicators or price patterns to avoid risk.
Use Screening Tools: Use screening tools such as “screener” to filter stocks based on specific criteria such as price range, volume, and volatility.
Practice Time Management: Develop a routine to improve your stock selection process and maximize efficiency within the one-minute timeframe.
Follow the above tips and practice paper trading with virtual money to gain confidence.
Intraday Stock Selection in 1 Minute
You can select intraday stock in just 1 minute bearing in mind the 3 rules that are established by the stock experts in trading.
Systematically follow these 3 rules to avoid confusion as they set a decent playground to level up your trade plan.
Intraday trading involves option buy and option put activity of a stock that should be completed in a single day.
Make a trade to make profits in small amounts during the price swings in the day trading.
3 Rules to Choose Intraday Stocks
However, follow these 3 rules that are established to benefit the intraday traders.
1. Choose Liquid Stocks
Liquid stocks characterize the voluminous buying and selling of the stocks. You can find a free flow of buying/selling process with the availability of high-volume stocks.
Buy stocks that possess a high liquid position otherwise your bought shares may not find buyers while you execute an option put in the trading day.
Calculate the liquid stock by the formulae made available, liquid stock = Average daily volume of a stock traded / market capitalization.
You must drop the plans of trading while the liquid stock ratio is less than 10 %.
2. Search for Volatile Stocks
Volatility of stock is the measure of the price fluctuations for a predetermined time frame.
In trading sessions, the stock price varies by 1% then it is called a volatile stock.
Identify the stocks experiencing at least 1% price variations then you can think over to place an option buying in your trade plan.
Invest in the multiple stocks that are interrelated in profile.
For instance, if you buy ONGC Ltd stocks belonging to the energy sector then other stock selection must be a chemical stock, extracted from the oil belonging to the chemical sector.
3. Follow the Market Trends
You regularly practice the art of analysing the candlestick chart patterns that deliver information on market trends.
It tells you whether you can enter to trade your chosen stock or backout, & stop your trade plan of the day.
Further analysis also helps you in knowing the entry/exit positions.
Adopt strategies that enable you to define the entry/exit positions in the day trading.
Making use of the moving averages technique in the candlestick chart can help you derive the best entry/exit position of your stock.
The breakout techniques adopt resistance and support levels to identify the best pullback entry/exit positions.
Consider the stocks whose business operations are in the news regularly.
Evaluate the performance of the sectors in the markets and then invest in them accordingly.
Make a selection of stocks that have voluminous buying and selling in trading, they should be visible in the derivative segment.