How To Pick Stocks For Intraday?

How To Pick Stocks For Intraday?

By Adam Smith | Finance Contributor on February 4, 2021
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Before we talk about the process of picking stocks for intraday, we should first learn about some relative subjects such as trading in the share market, intraday trading, and more. A share market is a market where shares are either issued or simply traded-in. On the other hand, intraday trading essentially refers to the buying and selling of stocks on the same day to gain profits.

In this article, you will be advised with the best intraday tips which will assist you in the buying and selling of shares within the same trading day to earn sizeable profits.

Here, we will talk about the best ways to pick stocks for intraday, along with learning more about what intraday trading refers to and how it should be performed to earn benefits.

What is meant by intraday trading?

Now, intraday trading primarily implies the purchasing and selling of shares on the same given day with the sole intention of earning profits. Here, the stocks are not bought to invest. Instead, stocks are bought as an attempt to earn profits by channelling the movement of share indices. In this type of market, one does not intend to take delivery or fulfil it. So, if you choose to perform intraday trading, you are buying shares with the hope that their value will increase so that you can sell them by the end of the trading day.

Here, since you do not possess the luxury of time, you can only accomplish your goals by choosing the right stocks. Hence, choosing the right stock is imperative.

How to pick stocks for intraday trading?

Before you think about picking stocks for intraday trading, you need to note the presence of certain features in the stocks that you purchase. These are explained below:

  • Heavy demand or liquidity of stocks: The demand or liquidity of the stock you choose to buy should be considered high so that you can buy and sell at any point in time. Another advantage of buying stocks having high demand is that these stocks usually possess large volumes which in turn ensure that you can buy and sell large volumes without affecting the stock value.

Before you choose to buy liquid stocks, you should make sure that you evaluate the liquidity of the said stock at different price levels. Understanding this factor will allow you to buy and sell the stock at the correct time.

  • Price variation or volatility of stocks: It is a fact that intraday traders can only reap the benefits of intraday trading if the value of stocks fluctuates according to their predictions. If the stock value shows volatility, then the traders can place more intraday orders and gain profit from satisfactory price movements.
  • Market trends in stocks:

Markets generally tend to move upward or downward which is dependent on various economic, social, and political factors among other things. Stocks usually possess a positive or negative correspondence with the markets. Therefore, it is vital to keep this connection in mind before you decide to buy stocks for intraday trading.

  • Sector trends in stocks:
    The market as a whole can be divided into several sectors such as banking, information technology, pharmaceuticals, etc. Now, to perform intraday trading, it becomes crucial for the trader to be up to speed with the statuses of all sectors in the economy. Therefore, if you can recognize any sectors that have been enhancing over a long time and are ready to emerge, then you can seek out companies from that same sector to invest in.
  • Stock momentum:
    Stock momentum essentially refers to the speed at which the prices of stocks change over time. This can assist you in recognizing the strength of the trends in the value of the stocks.
  • Technical evaluation: Several strategies can assist you in performing the technical evaluation of stocks to recognize buying or selling signals. You can also choose to use this technical analysis process to identify stocks that are breaking their resistance levels as well as their support.


Intraday trading represents the act of entering into and exiting stocks on the same trading day intending to gain profits. However, this act is mastered only with a lot of practice especially if you are well-versed in share market trading. You should be very cautious before you enter the world of intraday trading because one wrong decision on your part can result in heavy losses. You should make sure that you are only working based on your collected data and that your objective is set straight before you enter the world of intraday trading. Emotion-driven decisions often lead to tragic losses in the world of intraday trading.


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