If you are intraday trader and you are finding very difficult to find out high quality stocks to trade then this article is for you. Here we will sharing tips on how to choose the most suitable intraday stock without much efforts. This is very simple process, make sure you follow it precisely.
step 1: In google search – look for- ticker tape or go directly using this link:
Scroll down and click on start screening:
This will take you to the screening page:
Now with the help of this tool we will try to find out quality stocks.
There are thousands of stocks listed in the NSE and BSE but not all stocks are suitable for intraday trading. On this tool there are some filters which we need to apply once you apply those filters you will get high quality stocks for trading.
Step 1: click on stock universe and choose nifty 100. These stocks usually have very high volume and volatility
Step 2: go to close price section. This gives you the latest price of the stock. We will not trade in any stock whose value is lesser than Rs.100 and maximum price of the stock we want will be Rs.5000. This suitable range for intraday. We will not go for any penny stocks.
Step 3: Apply beta filter. Click on the filter button and search for beta and apply it. Once it is visible in the left section, open and select high range. Beta is a parameter through which we can determine the range of a stock or the volatility of the stock. In intraday you should always trade for high beta stocks.
When ever we deal in intraday trading, beta value of 1 or lesser than that has higher chances of sticking in the sideways. But we need stocks which are not moving sides but should have up and down momentum. Our calculation here is simple – since we have selected nifty stocks – if nifty goes up by 1 percent, all the other stocks also grow accordingly. Here we will read this data as – if nifty moves up by 1 percent Indusind bank ltd has potential of growing by 2.26 percent.
We there has to always choose stocks which has higher beta level so that you don’t get stuck in the sideways market. So out of the filtered stocks you should choose the top 10 stocks having highest beta level. Any stock which is having more than 1.5 beta level that is suitable for intra day. Once you this list ready add them to your watch list. Once you are done with this listing.
You can again go back to the step 1 and choose nifty mid cap from this option. You can now apply the same logic mentioned above for the stock selection and add to your watch list. Once you are done with this, you can either apply your own logic for day trading or you can with our simple price action trading strategy.
Here we follow strategies like – breakout, breakdown, channel pattern, triangle pattern, symmetrical pattern etc. Whenever we identify these kind of patterns in any of these stocks we can plan our entry and exit. Make sure you do all these home works one day before the market opens. What you need to do, one day before the market start open all these stocks charts and mark their important support and resistance levels. You use 1 hour hour time frame for preparing this.