However, there are so many equity shares to choose from. You must first decide what exactly you want to trade in. Often, people are unable to generate profits in day trading because they lack the required knowledge and skill when it comes to selecting stocks. So, if you are just getting started, here are some suggestions that can help boost your confidence in intraday trading:
Ø Trade in liquid stocks only: If there’s one intraday trading suggestion that you must take home, it is liquidity. Liquid stocks have larger trading volumes. This makes it easier for traders to buy and sell it without significantly affecting its price. It is generally difficult to buy or sell large quantities of stocks that are less liquid. This is because of lack of buyers.
Ø Always follow the trend: This is another important intraday suggestion you must remember. Following the trend is beneficial. This is because the market always moves in waves, and as a trader you must learn to surf. Focusing on uptrends and downtrends and even dominant trends will show you the path and help you earn profits.
Ø Do your due research: Undertaking research will definitely bear fruitful results in intraday trading, but unfortunately many traders tend to avoid this. One must identify the index and then find sectors of interest. This will help traders find the right stocks and avail maximum profits.
Ø Stay away from highly volatile stocks: It is advisable to stay away from stocks that move in an unexpected way or are extremely volatile. In addition to this, such stocks tend to have low daily volumes, which make them illiquid.
Ø Trade in good correlation stocks: The best formula for intraday trading is to choose a stock that has a higher correlation with big sectors and indices. This means when a sector or an index sees an upward trend, the price of the stock also increases.
Ø Be patient: Trends don’t continue for a long time. Thus there may be a few losses you may incur in the process. But be patient and focus on the overall profit.