Choosing the right stocks is the most important thing for intraday trading.
You should choose stocks which atleast moves up or down 3.5–4% on intraday basis and our aim as a day trader is to catch atleast 1%, then only we can be profitable in the long run.
Here are some important factors which I look while choosing stocks for intraday trading:
Stock should be listed in Futures & Options segment. This ensures that there is enough liquidity in the stock and you can get in and out of the stock whenever you want.
The stock should have high Beta value. Generally I choose stocks with Beta greater than or equal to 1.5.
The stock should satisfy the criteria of NR4 or NR7 i.e. the range of the stock (High - Low) is the smallest on fourth day for NR4 and smallest on seventh day of NR7.
Upper Band of Keltner Channel should be above Upper Bollinger Band till closing or Lower Band of Keltner Channel should be below Lower Bollinger Band till closing. If any stock satisfies both the criteria then is very good.
The trend of the stock can be found using the combination of Hekin Ashin Candles of 15min and Stochastic RSI. If you the getting in uptrend sign then buy the stock when it break it’s first 15min High or if you are getting downtrend sign then sell the stock when it is breaking its first 15min Low.
If all the steps are done using proper discipline and risk management then it can give good results.
You should choose stocks which atleast moves up or down 3.5–4% on intraday basis and our aim as a day trader is to catch atleast 1%, then only we can be profitable in the long run.
Here are some important factors which I look while choosing stocks for intraday trading:
Stock should be listed in Futures & Options segment. This ensures that there is enough liquidity in the stock and you can get in and out of the stock whenever you want.
The stock should have high Beta value. Generally I choose stocks with Beta greater than or equal to 1.5.
The stock should satisfy the criteria of NR4 or NR7 i.e. the range of the stock (High - Low) is the smallest on fourth day for NR4 and smallest on seventh day of NR7.
Upper Band of Keltner Channel should be above Upper Bollinger Band till closing or Lower Band of Keltner Channel should be below Lower Bollinger Band till closing. If any stock satisfies both the criteria then is very good.
The trend of the stock can be found using the combination of Hekin Ashin Candles of 15min and Stochastic RSI. If you the getting in uptrend sign then buy the stock when it break it’s first 15min High or if you are getting downtrend sign then sell the stock when it is breaking its first 15min Low.
If all the steps are done using proper discipline and risk management then it can give good results.
Life is simple, so you just keep it simple, dont complicate it.
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