Things keep in mind while buying stocks for Intraday Tradingby The GRS Solution your buisness Our growth
Rule 1: select more Liquidity
Liquid stocks contain the big volume, through which larger quantities can be purchased and sold without significantly affecting the cost. Since intraday trading strategies most depend on timing and speed, a lot of volume makes getting into and out of trades easier. Depth is also critical, which present you how much liquidity a stock has at several price levels above or below the current market bid and offer.
Rule 2:focus Medium to high volatility
Intraday traders require movement in price order to make money. Traders can choose stocks that tend to move a lot in terms of the dollar or in terms of percent, as these two filters will often produce different results. Stocks that tend to move by 3 % or more per day have consistent large intraday moves to trade. The same applies to stocks that tend to move more than $1.50 per day.
Rule 3: Group followers
While there are those who specialize in antagonist plays, most traders wait for equities that move in correlation with their sector & index group. This means, when the index or the sector shake upward, the individual stock's price also increases. This is an important point if the trader wants to be trading the strongest or weakest stocks each day. If a trader doesn't like to trade the same stock every day, it is a wise idea to focus on that one stock, and there is no need to worry about whether it's correlation & anything else.
Created on Dec 4th 2019 04:37. Viewed 324 times.
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