By: rapidtips On: September 05, 2017 In: Intraday Trading Comments: 0

Just buying and short selling stocks won’t make you an efficient intraday trader, and it has been seen that traders with all necessary qualities still doesn’t get success. Hitting the right stock is a crucial attribute that one need to have along with other qualities. Most of the time intraday trader faces a loss because they fail to choose the proper stock which will incur them a safe return. This article will guide with tips which will assist you in picking the right stock that will provide you steady growth.

It is always best to follow certain advice and opt for substantial research before trading a stock which will help traders to avoid themselves from any kind of downfall. Whenever you are choosing a stock never ever gets swayed by emotion or ego because they are a most disastrous factor that can make you lose all your money. So it is better to follow some guidelines which provide the path towards growth.

Tips To Choose the Right Intraday Trading Stocks 

The following points will provide some tips or suggestion which will help you hit the right stock and thus you will be able to gain a good amount of profit in your intraday trade:

  • Whenever you are going for an intraday trade, always try to choose liquid stocks because it has high average trading quantity, so there is a high buying limit. Liquid stocks assist traders to buy or sell plenty of shares without facing any problem. Many follow these tips because it provides them a good return. So if you buy low volume, then it would be best to stick stocks having 50,000 to 75,000 average trading volumes.
  • It is advisable never to pay attention to high volatile or unpredictable stocks because there is a chance that you will end up facing loss. This kind of volatile stocks often has a low average daily volume which enhances their unpredictability. Many intraday traders make a mistake as they buy volatile stock and wait for news to change the price the stock but at the end, it stays same.
  • If you want to choose right stock in intraday trading then always opt for stocks that have good correlation with prime stocks and indices. Correlation indicates when you buy a stock of particular index or sector and if that index moves up in the market consecutively, the stock will also go up. Stocks having correlation are reliable because it won’t be unpredictable and you follow the trend.
  • Always follow the trend because when you move along with the trend, you will find good return. During a bull run, always identify the stocks that have potential to rise and during bear run always choose a stock that has high chances of going down.

It is a smart move to research before starting your intraday trade like monitoring the index and then identifying a sector that goes by your niche. You need to analyze on a daily basis to predict their movement and always choose a stock that is tradable and lies top tier position in that particular sector.