Tips for Picking the Right Stocks for Day Trading
Day trading takes a lot of time to master. Develop or learn a strategy, and then practice it thoroughly for a number of days until it gives you good results. You can do this by either trading a Virtual Free trading game account or by doing paper trading. Once you ready with your strategy for your day trading, and also you have gauge the trend of the market you can start with the real trading in the NSE market. Start trading with say 25-50 shares, even if you can afford more, later on you can increase the trading qty. If market is bullish for the day, i.e. market is trending up. Select a sector and the stock which is also going up from the 1000’s of stock available for day trading.
Stock Selection for day trading
Stock Selection means identifying the stock that you will trade for the day. This will include lot of work before market opens for trading. First Read Financial news papers, Watch any Business News TV Channels like CNVC TV 18, NDTV Profit, etc Before / During the Trading hours. A Trader should visit sgxnifty.org to view the sqx nifty charts trading in singapore markets in the morning, you can predict the nifty openings by looking at the SGX nifty movements in the morning before our Indian NSE market opens for day trading. Also you can check the news for any change in govt policy which may impact a particular sector. Any change in Crude oil rates have impact on oil stocks. An Earnings or any bad news report of a particular company can also have impact on the move of the stock.
Also Read: What is a good RSI number?
You select a Stock with Good Volumes particularly a Large cap stocks for your Day trade. Since you are also ready with your daily income and loss targets, plan your trade accordingly. At any point of time, if you think you trade has gone wrong, square-off your positions before it turns in to a huge loss. You can always take a another trade by saving your valuable capital. If market open on a weak note and is trending down, you can use this as opportunity to earn by selling at higher levels and squaring off at lower levels to make money. There are certain occasions when market trades in a range. You should avoid day trading during this time. Wait for market to consolidate and give you a visible trend either up or down.
Learn from your negative trades as well as your positive trades, think which stategy in which market suits you better and prepare your own trading plan. Keep changing your trading plan according to its results as one needs to improve day by day to fine tune it.
If you are a new to trading, you are likely to suffer some losses during your learning period. We advise you to take benefits of experience advisory like us to Advise you in day trading. You can take our Two days Free trial and trade in our intraday tips, make money and then pay us later to continue our services. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.
Also Read: What is a Daily Chart in Intraday Trading?