What should we look for before picking a stock for Intraday?

I often get messages from my clients and friends asking me about how to choose the correct stock for trading,how do you know it will bring no loss and give lots of profit.

Well the truth is simple no stock selection strategy or the intraday calls are 100 % efficient.The success rates vary between 70-80 % which is quite normal.

One best technique I would like to explain you for selecting some of the best stocks for Intraday trading.

First thing remember - Never trade daily.

Intraday is not about trading daily. This is a misconception of many people.

Ok so lets come to one trick for choosing the best stocks for Intraday trading.

• First and foremost remember - History repeats itself. This is also going to happen in markets.
• Tell me how does an Intraday chart of a company forms? How is a chart formed for a particular day? It is basically an extension of the previous day. Remember that it is always expected what happened yesterday will happen today in Intraday. So it is very important to analyse previous 2–3 days charts.
• Go to yahoo finance/google finance/investing.com or any site that shows you previous day's charts and see whether the stock has went up or down for some days. Normally,a script moves up or down for 2–3 days consistently after which it comes down. So, find stocks that have moved up just for 1 day. The scripts that have moved up/down 2–3 days are not of our concern. So just select those who have just just started moving up/down and had shown this trend for just 1 day.
• Then, open its hourly candlesticks chart and see the movement of candles whether it has a continual uptrend/downtrend or it was in a sideways trend for most of the day and had given a large breakout after that.
• It is has given a continual uptrend/downtrend then it is likely to move in the same direction today. Its not however 100% that it will pick up the trend from the morning itself. It may start after 10am also.
• That's why one more thing you need to see is whether the script has opened on the previous close or approximately near to the previous close. That gives a confirmation as to what will happen next. If the script does not have enough demand/supply for today, then it is likely to open at the prev close or near that.
• This is one of the best strategy for selecting stocks in Intraday for a particular day.

Try using and creating your own methods and let me know how this stock selection method worked for you.

Happy Trading!

BY ABHIRAM DAPKE