How to Select Stocks for Intraday

Intraday trading is one of the most popular trading strategies in which traders initiate and execute all trades on the same day.

As a day trader, choosing stocks for intraday is an essential skill that you must practice. Whether you are a professional trader or someone new to the market, picking the right stock is critical.

Many factors go into selecting the right stock for intraday trading, including the company’s financials, the stock’s volatility, and the time of day the stock is traded. With careful selection, making money in the stock market through intraday trading can be rewarding.

Intraday has become a popular choice with the new age investors. Multiple factors are under consideration for selecting suitable stocks for intraday trading, such as the stock’s volatility, news update, etc. With the right selection of stocks, intraday trading can be fruitful for traders.

What is intraday trading?

“Intraday trading” describes the buying and selling of a security within a single day (i.e., before the market closes). This type of trading is done by traders interested in making smaller and quicker profits.

Intraday traders do not have long-term goals for their investments; instead, they are looking for short-term gains during the same trading day.

Intraday traders minimise the risk of impact from overnight events. This trading method aims to take positions for shorter time intervals and book smaller profits during market hours. Intraday traders sometimes aim to take more than one trade on the same day.

Eight Rules for Selecting Stocks for Intraday Trading Intraday

Trading is all about buying and selling shares on the same day with an aim to book profits. However, to succeed as an intraday trader, you need to have extensive market knowledge so that you can select the suitable stocks which will generate profit for you.

Let’s take a look at the eight rules for the selection of stocks that will make you a successful intraday trader.

  1. Choose Liquid stocks.
  2. Look for volatile stocks.
  3. Invest in correlated stocks.
  4. Follow market trends.
  5. Use different strategies that can help you conduct technical analysis of stocks for the identification of buy or sell signals.
  6. Go for stocks of companies that have sufficient news about their business operations in the market.
  7. Follow the performance of various sectors in the market and invest accordingly.
  8. Select stocks that have a presence in the derivative segment.


To succeed in intraday trading, picking the appropriate intraday trading stocks is crucial; as a result, make technical analysis your companion. Moreover, by following the above tips, you will have a clear understanding of selecting the right stocks for day trading. Finally, to avoid emotional bias, ensure your judgments are data-driven.

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FAQs (Frequently Asked Questions)

The position that you’ve taken, gets squared off by the broker by the end of the trading hours on that same day.

Technical traders use various charts and indicators to gauge market sentiment. There are various ways to identify a trend. You can use indicators like MACD, RSI, moving averages etc. to spot/find the direction of the trends.

Intraday trading requires a lot of patience and research.

  • Set a percentage of profit and stick to it rather than waiting to generate huge profits from a single trade.
  • Be well-informed about and adapt to the latest market trends to make the most of it.
  • Have a thorough knowledge of the technical indicators like MACD, RSI, etc so that you can use it in combinations to make appropriate trade decisions.

Intraday is the buying and selling of shares on a single trading day whereas if you buy and hold shares overnight then you take delivery of shares. This is called delivery trading.

© Bajaj Financial Securities Ltd