Successful implementation of day trading strategies is one of the key factors to succeed as a day trader.
One such criterion for you is to select the best trending stocks for intraday trading.
Your day trading strategies will fail if the stock you have selected is not trending.
You may know the fact that either stock will move sideways or trending. So, you need to grab those stocks which are likely to move in one direction.
It doesn’t matter if the stock is trending upwards or downwards. You can ride with the trend if you find such stocks and make awesome money from it.
However, finding a trending stock is really tough. Otherwise, all traders will succeed in their day trading strategies.
It is a fact that stocks are not always in a trend. So, professional traders try to find intraday stocks on a daily basis to make money out of it.
It will be a good idea to find such stocks daily and trade them.
However, you need to find such stocks real fast and act super fast. As in day trading, time plays a crucial role that decides whether you make or lose money.
On the other hand, I like to trade on the same stocks that are likely to trend most of the time.
If you already have a bunch of stocks that you know may trend is an advantage for you.
Moreover, you will understand the behaviour of stocks more deeply.
The good thing is I found some of the stocks which trend most of the trading session. So, you don’t need to find such stocks that make your day trading strategies successful.
Day Trading Strategies – Intraday Trend Following
I select stocks for intraday trend following strategy based on volatility, liquidity, and their movement respective to their sectors or index.
You need a high price movement in order to make money from day trading. So, you need to choose a stock that is likely to move higher.
Stocks that tend to move 3% or more on a daily basis allows you to make consistent profits from the trade.
Liquid stocks normally have a larger volume and so you can buy and sell huge quantities.
High volume lets you get in and out of trade very easily.
So, better you trade faster as day trading strategies depend on time and accuracy.
There is another crucial factor which most of the traders look for in an intraday stock. It is the association with their respective sector or index.
So, you may notice that stocks are most likely to follow their peers.
If sector or index is moving up, then the stock is likely to move with the sector trend.
However, if you opt to trade the same stock every day, then you don’t need to worry about whether it is in line with the sector or not.
Intraday trading is a risky business and so you must have knowledge, skill, and discipline.
Better you stick to your day trading strategies no matter what happens. That way, you will able to manage your trading risk properly.
Furthermore, backtest these stocks with your day trading strategies and select the stock which gives maximum returns.
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There may be other good stocks for intraday trading. So, do let us know if you know any good bet for trading.
Which stock you have selected for trading? Do you trade in a single stock or select stocks based on market conditions?
Either way, you can comment below with your trading ideas.