How to pick stocks for Intraday Trading?

How to pick stocks for Intraday Trading?

Intraday trading is defined as buying and selling a security on the same day with the goal of profiting. You don’t intend to take delivery or execute it, thus it’s equivalent to a market order. In other words, you don’t want to buy shares if you place an intraday order to buy them; instead, you want to wait for the share price to climb and then sell them before the trading day closes. You can also use these orders to sell shares you don’t own first and then buy them back later in the day to complete the deal.

Because you only have a few hours before squaring off your position, intraday trading success is based primarily on selecting the right stocks. As a result, picking the right stock is critical.

If you want to buy and sell a commodity in the same day, it must meet certain criteria. Here are a few examples:

  • High demand (liquidity)
  • Volatility
  • Market trends
  • Sector trends
  • Technical Analysis


The liquidity of the stock should be sufficient to allow you to buy and sell it at any moment. Another benefit of investing in high-liquidity equities is that they frequently trade in large volumes. As a result, you can purchase and sell large amounts of shares without affecting the stock’s price.


If the stock price is volatile, they can place more intraday orders and profit from favourable price changes. Buying highly volatile companies, on the other hand, can be risky if the drop/rise is too steep.

While there is no hard and fast rule, most intraday traders prefer equities that move between 3% and 5% up or down on a daily basis.

Market Trends                    

Markets tend to rise or fall in response to a variety of economic, political, social, and other reasons. A positive or negative correlation exists between stocks and markets. As a result, stock prices may rise or fall in response to market fluctuations. As a result, it’s crucial to keep this correlation in mind while buying stocks for intraday trades.

Sector trends

Pharmaceuticals, automobiles, oil and gas, fast moving consumer goods, and banking are just a few of the industries that make up the market. It’s vital for an intraday trader to keep track of the economy’s performance throughout all sectors.

Technical analysis

There are several strategies that can help you do technical stock analysis and find buy or sell signals. You could search for stocks with price gaps in one way or the other. Day traders can benefit handsomely from these gaps. Technical analysis can also be used to spot stocks that are breaking through barrier or support levels.


It’s important to remember that making money in intraday trading requires buying the right stocks. While the aforementioned suggestions can help you locate them, you will eventually figure out how to select stocks that are most beneficial to you.

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