Intraday traders need to look for stocks that have a large amount of liquidity and a low risk. This can be found on the website of the exchange. They should avoid stocks with small daily volumes and big news because these are more volatile. They should also try to avoid stocks with high volatility, as they are more likely to hit circuit filters. Intraday traders should also avoid stocks that are only held by a few market operators.
Intraday traders should always follow the rules of trading, which include having a solid basis for a trade. This can be anything from a news event to a stronger stock reversing from a support level. A basic setup must be followed, as well as rules of thumb, such as cutting losses rather than averaging a bad trade.
Intraday traders should always keep two or three liquid stocks in their portfolio. These are typically shares from large cap companies. These shares are also good for squaring off open positions. Intraday traders should also keep an eye on shares that are trending. Trending stocks are likely to have good trading volumes and momentum.
The most common intraday stock selection approach involves picking stocks that react to news. These stocks tend to react to any news or event that is related to the company. This makes it easier for traders to take positions. However, it is important to be wary of stocks that react too quickly to the news. This can cause the share value to move either way.