Wondering where and how to select stocks for day trading in just 1 minute.
Picking a wrong stock especially for intraday is one of the biggest mistakes most of the newbie trader make. Moreover, day trading is very risky and so you need to act very fast.
You need to select stocks for day trading very quickly. It must be your top priority to find stocks that are likely to perform for the day.
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Picking a wrong stock that may move sideways or move against your expected direction may wipe out your capital. Apart from selecting stocks for intraday, you also need to follow your trading rules.
Your day trading strategies along with right stock selection makes you a winner.
Having said that, here are the 6 easy ways you can select stocks for day trading in just 1 minute.
Select Stocks For Day Trading – OHL
You can quickly find stocks for intraday trading using OHL strategy. OHL is nothing but OPEN=HIGH or OPEN=LOW.
So, you can easily select stocks for day trading if the opening price of a stock is equal to its high price. The idea is to go short in stocks if OPEN=HIGH.
Similarly, you may go long in stocks if OPEN=LOW. That means the opening price of a stock is equal to its low price.
You can get OPEN=HIGH or OPEN=LOW data by using a scanner. Either you can build your own excel scanner or use a readymade scanner.
Moreover, you also need to keep an eye on market trends. So, if the market is bullish, then you must select stocks where OPEN=LOW.
Likewise, if the market is bearish then you need to select stocks where OPEN=HIGH.
Top 5 Gainers and Losers
Another way to select stocks for day trading is to use the top 5 gainers or losers list. This is one my favourite list and you may find great intraday trading opportunities here.
You can select stocks from Nifty50, Nifty Next50, MidCap50, and F&O Stocks.
52 Week High and Low
You can also select stocks which are closing near their 52 Week High or Low price. If a stock gives breakout in either way, then you can trade with that direction.
So, if a stock breaks its 52 Week High price, then it may likely to go up and so you can buy the stock.
Similarly, if the stock breaks its 52 Week Low price, then most likely you can expect it to go down further.
Top Gainers Index and Losers Index
Top gainers index and top losers index are also one of the best ways to select stocks for day trading. You will get an overview of the market and select the sectors which have gained or lose in the day.
Once you select the sectors, you can choose the stocks from the list which gains or lose the most. I prefer to choose stocks which gains or lose by more than 2.5%.
Open Interest With Price Movement
Open Interest is one of the key factors to gauge the market direction. So, if you find an increase in Open Interest along with an increase in price, then you might consider going long.
On the other hand, if you find stocks where there is an increase in Open Interest with a decrease in price, then you can short it.
High Beta Stocks
High Beta stocks are the stocks which are very volatile in nature. That means you may get huge price fluctuation in these stocks. Professional traders like to play around these stocks.
All you need is to select stocks which have a high beta value of more than 2. You can select high beta stocks and trade on a daily basis.
Moreover, you will be ready before the market opens as you don’t need to find stocks. I prefer high beta stocks no matter where the market headed.
Key Takeaways…..
You can choose any of the above tricks to select stocks for day trading. Once you select the stocks, just apply your day trading strategy on these stocks.
If the selected stock matches or gets fit into your trade setup only then you trade.
It doesn’t matter what strategies you follow unless you are discipline while day trading. If you’re not disciplined, then you will never make money from the stock market.
Did I miss anything?
Either way, do let us know how you pick stocks for day trading.
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Published on: May 04, 2019
Thanks for sharing the post. The way you narrated the post is good and understanding. This is the best post know tips to select stock for day trading. After reading this post I learned some new things. Please let me know for the upcoming posts.
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