With thousands of equities to choose from, the intraday traders can opt for any of these for getting back profits. However, before this, one needs to identify the kind of trade one wishes to pursue –
- Single stock
- Multiple stocks
- ETF alternatives
It is important to select stocks that have a history of delivering ample profits along with mid to high liquidity. This is one of the basic of intraday trading tips for doing business in India. For this you need to do research on the current market trends and use your skills to capitalize on them.
Intraday trading tips India for selecting stocks
Another important aspect of the trading process is selecting the right stock for your needs. Here are a few intraday trading tips India for your benefit –
- Liquidity is the key factor
Liquid stocks have high volume and allows you to invest in larger quantities without any major effect on the price. Thus, the key intraday trading tips India here is to have speed and accuracy in finding out the right stock and volumes to aid in your benefit.
Similarly, depth of the stock is important to understand the extent of liquidity a stock has at the given price levels.
- Stick to medium and high volatility stocks
Day traders need to monitor price movements to get the right profits. Hence, the key intraday trading tips India here is to filter the ones that tend to grow in dollars or percentage values. Hence, stocks that move 3 percent or more each day have better intraday moves and the same goes for the ones making 1.50 dollars each day.
- Group followers
Traders who specialize in contrarian plays are often experts looking for new avenues of growth. Yet many traders prefer equity that moves in Correlation to the actual sector they have invested in. This means that when the stock or index moves upward then the stock prices turn up.
As a trader, this is an important part of the day trading experience to identify and filter between the strongest and weakest stocks. Hence, if the investment is made to the same stock everyday then the best idea is to continue doing so without worrying about Correlation or similarities.
Day trading is risky and requires knowledge, skills and experience to build your wealth. If you are looking to make a big move and earn big then this is not the right place for you. The last intraday trading tips India is to learn the ropes before making a major investment.