HOW TO FIND STOCKS FOR INTRADAY?

In intraday trading, stock selection is one of the core areas to focus.

You have to be very selective in this process and going for any random stock will lead into consequences, like heavy loss and continuous capital erosion. So, it becomes very important to adapt one good method and stick to it.

I find stocks to trade from my custom scanners, which provides me right entry points. I prefer to trade in F&O. Very few times I trade in non-F&O stocks.

I prefer stocks which comes in my scanners with well-defined setups and one can design their own conditions and get stocks for trading.


Here we get two major parts in it.

Stocks selection for next day using EOD (end of the day) selection process

Stocks selection in live markets looking at different parameters.

Stocks selection for next day using EOD (end of the day) selection process

In my EOD method I analyse price action of past 2-3 days to get idea of what buyers and sellers are doing, based on which I rank my stocks and pick 4-5 stocks for buying as well as selling for next day. Looking at major direction of markets I initiate my trades.

I prefer to select my stocks a day before and that gives me confidence. Here I cannot reveal my entire selection process but I definitely want to share one of my selection criterias for intraday trading.

Before you start day trading with real money there are three things you must have:

STRONG HOLD ON PRICE ACTION

A STRATEGY THAT’S BEEN BACK TESTED & PROVEN PROFITABLE

ROBUST RISK MANAGEMENT SYSTEM TO CONTROL LOSSES

I normally prefer my pre-selected stocks to trade in next trading session but some time I don’t get good setups to enter and sometime huge gaps makes it difficult to tradeWhere I use this method as a last resort or prefer not to trade at all.


Stocks selection in live markets looking at different conditions

Now let’s talk about selection process

I only trade in stocks where liquidity is high in terms of volume. (Check highlighted box with value)

I use volume with good momentum stocks (% change) so that I don’t get stuck with them long time. As more time you are in a trade which is not moving in your direction, have huge chances to turn into a loss making one.

I use volume with good momentum stocks (% change) so that I don’t get stuck with them long time. As more time you are in a trade which is not moving in your direction, have huge chances to turn into a loss making one.

As market preopen activities starts at 9:00 AM and settles at 9:08 AM, we get all opening tick prices for index as well stocks

https://www.nseindia.com/market-data/pre-open-market-cm-and-emerge-market

now start observing the top stocks in both gainers & losers which are opening with highest % move. If in that list, more than two stocks are belonging to same sector keep that sector on radar as well.

When market opens, watch which sector is moving nifty up or down in first 15 min. 
https://www.niftyindices.com/market-data/index-movers

now start observing the top stocks in both gainers & losers which are opening with highest % move. If in that list, more than two stocks are belonging to same sector keep that sector on radar as well. When market opens, watch which sector is moving nifty up or down in first 15 min.

In these stocks, one more thing you can track is future open interest activities, if you wonder most of the days why some stocks move very fast and throughout the day become super trending are the one which have highest OI built-up and you can track it here,

https://www1.nseindia.com/products/content/equities/equities/oi_spurts.htm

In these stocks, one more thing you can track is future open interest activities, if you wonder most of the days why some stocks move very fast and throughout the day become super trending are the one which have highest OI built-up and you can track it here,

Apart from nifty and bank nifty when you see other stocks in this highlighted box which have unusual open interest built-up, these are the counters which are fast moving compare to others, and show visible results as most active smart traders are interested in such stocks.

Apart from nifty and bank nifty when you see other stocks in this highlighted box which have unusual open interest built-up, these are the counters which are fast moving compare to others, and show visible results as most active smart traders are interested in such stocks.

After bank nifty we have Cummins India with highest OI and good volumes too. See it’s amazing run for entire day.

For e.g.:

If you observe my 10th November trades, I traded KOTAKBANK, in this trade I started tracking markets where I found banks were top gainers where big money was flowing at that moment and was pushing index higher. Same method you can use to select selling stocks as well when broader market is going down.

Now Here comes the real task, go and check which are the top moving banking stocks and as per your entry methods find out where you can enter with defined & as much possible as small stop loss.

Always respect your stop losses and whenever your buy/sell gets executed, place your SL simultaneously in the system & not in mind.

Strategy works beautifully when you trade in major market direction which rewards quickly.

Always aim for good risk rewards such as 1:2/1:3 which is highly recommended for being a consistent profitable trader.


At first you may think that the process mentioned above for selecting stocks for day trading is very simple and not worth following. But believe me when I say ‘SIMPLE THINGS WORK BEST IN STOCK MARKET’ and I am saying this from my 9+ years of experience in markets. People go on looking for complex strategies with indicators, waste money running behind expensive programmes, but come back again to the plain, old & gold PRICE ACTION setups with VOLUMES.

So KEEP IT SIMPLE SILLY!!

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