June 22, 2024

What kind of stocks to choose for intraday trading?

4 min read
intraday trading?

Intraday online stock trading is a great way to make money in the stock market. It involves the purchase and sale of stocks within the same day, requiring investors to make decisions in a very short period of time. So, choosing the right stocks for intraday trading is key to successful trades. As an intraday trader, it is important to pick stocks that will provide 


  • The most return while minimising risk.
  • That have high liquidity, 
  • Good price momentum, and 
  • Consistent returns. 

The process of selecting the stocks for day trading

Let’s move on to the how-to for choosing stocks for intraday trading in practice. By building a trackable universe of stocks, you can start narrowing down the best stocks for intraday trading. To focus on these equities, use filters and screeners. To discover the top stocks for intraday trading properly and carefully, let’s start with some basic procedures.

  • The first guideline is to only invest in well-known, liquid stocks. They won’t make execution simple, but they also make sure you don’t run the risk of being trapped in spread risk or being unable to exit intraday. The Nifty 50 stocks are some of the most liquid stocks you can find.
  • Filtering stocks based on their movement is an intriguing technique to find the finest stocks for intraday trading. To gain a clearer picture, consider the % movement as well as the rupee movements.
  • By being aware of stocks that have an excessive amount of market correlation because they can virtually act as a carbon copy of the market.
  • Stocks with distinctive price movement patterns are the ones to look at. For intraday trading, these are typically the best stocks.
  • A risky stock may appear appealing, but wise to limit your risks. If you invest in such equities, you can end up trapped without a way out, or the spread might be too wide.
  • Avoid stocks with little free float and excessive promoter ownership. These won’t qualify as the greatest stocks for intraday trading because they can be easily manipulated by a group of insiders or traders.

Tips for choosing the right stocks

Check the total number of shares exchanged within a specific time period to get an idea of the volume transacted. You can learn more about the volumes being bought and sold from this. Stocks that trade in huge volumes are the best choices for intraday traders.

  • Trending stock: Does a certain stock have a lot of buzzes? Day traders may find attractive chances in these stocks. They are likely to exhibit strong trade volumes and momentum in one way or the other.
  • Recent research: Look at the performance of the stocks on your shortlist during the past week or two. Has the closing price been constantly rising or falling during the time frame? Before submitting a purchase or sell order, consider the day’s expected movement.
  • Breakout stocks: Pay attention to your chosen stocks’ levels of resistance and support. The price over which stock is not anticipated to advance is known as the resistance level. The price over which a share is unlikely to fall is known as the support level. Does a stock appear to be about to move past these levels? Take advantage of the breakthrough to quickly turn a profit.
  • Losers and winners: The majority of brokers will identify the day’s top gainers and losers. As you choose your intraday positions, keep a close eye on the fluctuations of these equities.
  • Watch a few stocks: On the stock exchange, thousands of stocks are traded. Day traders are unable to monitor them all. That is why the majority of traders concentrate on a select group of shortlisted equities. The trader can seize profitable opportunities when they present themselves by conducting in-depth research on these equities.


Remember that choosing the correct stocks to trade in is the first step to success as an intraday trader. Once you’ve located these stocks, you may keep a careful eye on them and further assess them to spot trends. You cannot create your entry and exit strategy until you can recognize unique trends. Let’s summarise the most crucial factor in choosing the finest stocks for intraday trading. The stock you choose must be readily available, exhibit distinct trends, be cost-effective, and react promptly to breaking news. In particular, stay away from shares of companies with relatively small ownership groups. 

It is important to remember that intraday trading involves short-term strategies, so investors should pick stocks that have good short-term prospects for growth. Intraday trading is a fast-paced way of trading stocks. When deciding which stocks to choose, consider these key factors. Besides stock picking, intraday traders should also focus on other key factors like technicals of the trade, risk management measure, and the intraday trading brokerage.

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