How to Select Intraday Stock in 1 Minute: The stock market consists of different categories of stock. These stocks belong to different sectors and have different prices, different volumes, and different market capitalizations.
Selecting the right stock for intraday trading from various stocks can be a challenging task for beginners. In this article, we will be discussing how to select intraday stock in 1 minute.
Selecting Stocks for Intraday Trading
As we all know intraday trading is a form of trading where you buy and sell stocks on the same day. The transaction needs to be completed within the same day for a trade to be completed.
One needs to devote enough time to analyze the market trend, know how the stock is moving, and how much can it move, and be updated with current news in the market. Moreover, the key to successful day trade is picking the right stock.
So as far as the question of “how to select intraday stock in 1 minute?”. The simple answer to this is, it is not possible to do so. But here are some things that will make your process of selecting stocks for intraday easier.
1. Look for Liquid Stocks
Liquidity is the most essential factor for a stock to be selected for the purpose of intraday trading. Price moves quickly when you are trading on an intraday basis and having good liquidity in the stock will ensure that you can buy and sell the stocks quickly at any point.
Another importance of the liquidity of the stock is its high volumes. Stocks having high volumes can be bought and sold in large quantities without impacting the stock price and that presents an unnecessary stir in the market.
2. Look for Volatile Stocks
As you all know, in intraday trading, the trade is completed within the same day and you can only make profits if the stock makes good movement in your favor. Stock will only have good movement in its price if it is volatile in nature. So it is recommended to pick stocks with medium to high volatility.
But one should note that picking volatile stocks can also prove to be counterproductive if they move against your favor. Thus is it important to always set a stop-loss while intraday trading.
3. Select Stocks That Move With the Market
Markets tend to move in an upward or downward direction based on economic, political, social, and other factors. It is recommended to execute an intraday trade based on the general trend of the market.
Thus while selecting stocks for intraday trading, pick the ones that mirror the movement of the market. Higher the correlation, the higher the chances of making profits.
4. Trade Based on Sectoral Trends
The stock market is divided into various sectors. As an intraday trader, it is important to be informed about all sectors of the economy. If you notice any trending news impacting any specific sector, you can select stocks from that sector and take appropriate trades.
5. Monitor Select Stocks
There are thousands of stocks that are traded on the stock exchange and it is not possible for an individual to keep a track of all the stocks. Thus, it is recommended for traders focus on a few shortlisted stocks.
Doing so can help the individuals get familiar with the stocks, which in turn will help them take better trades. The best and simple way to do this is to have a watchlist of stocks for the purpose of Intraday Trading.
In this article, we answered the question of how to select intraday stock in 1 minute and we also discussed the process that can help you select better stocks for intraday trading.
The first step for a successful intraday trade is selecting the right stock. Individuals often fail to make money because they choose the wrong stocks to trade during the day. Thus, it is important for individuals to allocate proper time to selecting stocks and follow the above-mentioned steps in order to get better trades.
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