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Day trading is often referred as intraday trading in stock market and it is highly dynamic in nature where trading positions are opened and closed within the same trading day. It’s only picking the right trading stock at the right time which leads to success in intraday trading.  This article will cover how to identify the best share for intraday trading for tomorrow.

How to Identify the Best stock for intraday Trading
As mentioned stock selection is the key for success in intraday trading so here are few factors to consider before taking intraday position in Indian stock market.

1. Liquidity:

Liquidity refers to volume. Liquid rich stocks ensures that trades can be executed at the right levels within fractions of seconds and if liquidity is low then trades give major pain while getting activating or at the time of exiting.
Examples: Few Large cap stocks having high liquidity: Reliance Industries, Adani Ent and HDFCBANK to name few.

1. Volatility:

Its all about price movement when it comes to intraday trading or day trading. Highly volatile stocks often shows big swings in fraction of seconds which results in triggering stoploss so traders should target medium to moderate volatile stocks for day trading so as to materialize gains.

1. News Driven Movements

Stocks influenced by recent news, earnings reports, or major announcements tend to show significant movement during the day. Keep an eye on corporate updates, policy changes, or global events.

1. Sectoral Trend:

Day traders should make trading strategies based on the movement of sectors like for example if nifty is trading in green and all major sectors except IT sector are trading in green so while buying any stock one should avoid IT sector as one should prefer to trade as per market trend.

1. Technical Indicators:

Technical indicators are the best tool for doing day trading. Based on the market movement and trend indicators generate right signals and it’s the job of day trader to enter at the right time as per indicators for good gains. Few commonly used technical indicators are RSI, MACD, TRIX and Bollinger Band

Tips for Intraday Trading Success
Main thing while trading is to maximize gains and to minimize losses for that one should use stoploss and logical target to safeguard positions and heavy losses. Here are few tips to keep in mind while doing intraday trading.

1. Set Realistic Target

Set your target, keep greed aside. Once target is reached book profit and close positions and target should be realistic don’t chase market and thing to become rich in single trade.

1. Use Stoploss Orders

Everyone hate losses but still placing stoploss make sense and it prevent heavy potential losses so don’t feel shy in placing stoploss orders and always trade with stoploss.

1. Follow Market Trend

Trend is king and market is supreme always remember that never go against the market trend and traders should trade as per market trend in order to earn good profit.

1. Avoid Overtrading

Once you meet your daily profit/loss target stop trading and avoid doing over trading as it will eventually result in losses at the end of the day.

1. Stay Informed

While trading information is the key. Traders should keep eyes on all the events and news in order to make better trading decision.

Overall identifying the best intraday stock for tomorrow requires lot of knowledge, awareness and analysis of market only then traders are placed in good position for earning potential gains else if traders try to speculate in the market they tend to lose more money overall rather than what they earn. Traders should rely on research and analysis for placing trades.

Remember, while intraday trading offers exciting opportunities, it also carries risks. Trade responsibly, and never risk more than you can afford to lose.

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