If you want to get much profit, you need to know the rules for picking stocks when intraday trading. By knowing the rules for picking stocks, you won’t get trapped. In addition, you can avoid the worst things as an intraday trader.
Here are 3 rules for picking stocks when intraday trading in a stock market.
1. Liquidity, Liquidity, Liquidity
Liquid stocks continue to have highly liquid, allowing for the purchase and sale of greater volumes without greatly impacting the price.
Since intraday trading strategies rely on speed and correct timing, a lot of volume makes it easier to get into and out of trades.
Depth is also important, which indicates how much demand a stock has above or below the current market bid and offers at various price rates.
2. Medium to High Volatility
Day traders need moving prices to make profits. Day traders should pick stocks that appear to change a lot in terms of the dollar or the ratio, because these two filters frequently yield different outcomes.
Stocks that continue to jump 3 percent or more a day have consistently significant intraday trading moves (price moves). The same goes for stocks which continue to move more than $1.50 a day.
3. Group Followers
While there are those specializing in contrary matches, most traders are looking for equities that move in correlation with their industry and index group. That ensures that the price of the individual stock often rises as the index or sector ticks upwards.
This is important if the trader wishes to trad the strongest or weakest stocks every day.
If a trader wants to exchange the same stock on a regular basis, it is prudent to rely on that one stock. Because of that, there is no reason to stress if it is associated with anything else.
Trading on a day is risky and demands knowledge, skill and discipline. If you’re looking to make a major win by betting on your gut instincts with your money, try the casino.