If you are into intraday trading, you're probably a busy trader. You need to be active on the current stocks, and understanding the market condition is essential.
However, successful intraday trading comes down to selecting the appropriate stocks for the day. Picking the correct stocks can make or break your bank, and decide your investment future.
So, you need to take your time during the process to maximize your returns in the future.
Need tips to start selecting stocks? The article will guide you through the best stocks for intraday trading and tips to select them wisely. Let’s dive right in!
Best Stocks for Intraday Trading
The best part of intraday trading is that all stock selections, sales, and associated transactions occur during the day. So, there are no issues with holding certain stocks, and your money is stuck for a night or two.
It enables you to make quick decisions according to the market conditions and earn profits.
The best stocks for intraday trading, which other traders most actively use, include the following –
- Tata Motors
- CIPLA
- SBI
- Jindal Steel and power
- IndusInd Bank
- Vodafone India
- Axis Bank
- Adani Green
- Wipro
- State Bank of India
If you focus on the type of stocks available, there are plenty. You can check out a trending stock that follows the current market trends. Understanding this stock will give you a better insight into the market processes.
You can also consider breakout stocks. It has two factors associated with it - resistance level and support level. The resistance level is the stock price above which it will not rise. Further, the support level indicates a price beyond which an intraday stock might not fall.
Factors to Consider While Selecting Intraday Stocks
To understand the best stocks to buy today, you need to consider various factors. Along with considering your risk-taking appetite, you must focus on liquidity and volatility.
Liquidity
Liquidity is the primary factor for intraday stock selection. Liquid stocks involve large-volume trading and will suit inexperienced traders. So, you can easily buy or sell a particular stock with high liquidity anytime you wish.
Moreover, liquid stocks allow you to purchase and sell large volumes without affecting the associated trend. You can trade them in larger quantities without hampering the price.
Volatility
It is essential to consider the volatility of a stock, which defines its price moments throughout the day. A stock with medium or high volatility will have sufficient price movements daily. So, you can buy and sell these intraday stocks having more trading opportunities.
However, you should also avoid selecting highly volatile stocks, as they may negatively affect the price movement. To be safer, you can select stocks with a 3% average movement daily.
Market Trends
Following market trends is the most common strategy to maximize your intraday trading earnings. Select the stocks that might perform better on a particular day, per market conditions. Conducting a process like trading time analysis can be helpful.
You have to carefully follow the market trends and identify which stocks might perform well. These stocks must have good volume and price movements. Further, you can discuss with other expert investors to analyze market trends.
Remember not to make hasty decisions and move in the market’s direction.
Are There Other Strategies To Determine the Best Intraday Stocks?
Choosing the best intraday stocks takes thorough research and patience. After pointing out the stocks, you wish to move forward with, determine their resistance and support levels.
Then, understand the risks and benefits associated with each stock. It will provide you with sufficient information to make your investment decision.
Be it Bajaj Finance or Tata Motors' stock, your broker might highlight the top performers of the day. Similarly, you'll see the lowest-performing stocks. It is important to understand the movements of both these types of stocks to enhance your intraday investments.
Further, traders concentrate on the shortlisted stocks out of the thousands added daily on the stock exchange. You should research these stock options to find lucrative investment opportunities.
Wrapping Up
Intraday trading can be an excellent source of income if performed wisely. It helps you build your revenue in small portions or profits through several trades daily. So, focusing on market fluctuations and stock performances will tell you the best stocks to opt for.
Always select stocks having a low risk associated with them. Also, your investment decisions must compliment your bank account savings. Try not to invest more than you are capable of.