Mastering Intraday Trading: Strategies for Selecting Stocks and Reaping Daily Profits

Getting profit from the intraday market is certainly not easy, but it is achievable if you select the right stocks after thorough analysis of their parameters, charts, and technical indicators. For novice traders like you, starting with an investing course can be incredibly beneficial. Trading Fuel is offering such courses, which can bring you up to INR 20,000 per month in profits.

How to Select Stocks for Intraday Trading

One of the biggest questions retail traders ask is how to select stocks for intraday trading. With the right courses and a deep understanding of technicalities, you can learn to do it yourself. Here are several important factors to consider:

Capital and Risk Appetite

First, it's important to assess your capital and risk appetite. Successful traders often trade with a limit of just 3 stocks. For instance, I currently trade on only 7 stocks. When I tried with 3 stocks earlier, it did not work as well in India's unique market conditions.

Favorite Stocks for Intraday Trading

Based on my experience, the following stocks have proven to be good choices for intraday trading:

Hindustan Petroleum Zeel RBL Bank Power Grid Petronet LNG Appollo Tyre CICB Ltd.

These stocks are relatively cheap and have moderate volatility, which means lower brokerage and tax costs as well as fewer operator activities. Additionally, there are fewer algorithmic traders involved in these stocks, making them more stable.

Stock Selection Strategy

When choosing stocks for intraday trading, you should consider the following strategies:

Fundamentally Strong Stocks

Selecting fundamentally strong stocks is a critical step. It may be time-consuming, but it will pay off in the long run. Conduct thorough research on the company, including their background, previous results, and past performance. Look at the company structure as well. For example, HDFC Bank, TCS, and LT are all good and fundamentally strong stocks to target.

News-Based Stocks

Pay attention to stocks that are in the news, or those with upcoming quarterly or weekly results, or those involved in controversies. Analyze the impact of these situations on the stock and trade accordingly. As an example, on the day before a Maruti Suzuki quarterly result, I observed that the result would likely be negative. Using this insight, I posted a call for a 7000PE option trade, which resulted in significant gains when the news was released.

Stocks Flowing with the Market Trend

Identify stocks that move in line with market trends. For example, during a bearish market, these stocks will also fall, and during a bullish market, they will rise. Examples of such stocks include HDFC and Reliance.

Stocks with Weak Fundamental Structures

Avoid stocks with weak fundamental structures. For instance, Airtel and PC Jewelers do not have a strong fundamental structure, and their trends are difficult to predict. It can be tempting to invest in such stocks due to their large size, but it is advisable to avoid them.

Practical Example

During the analysis of Maruti Suzuki, I noticed that their quarterly results were about to be released and that the results would likely be negative. I posted a call in my own Telegram channel for a 7000PE option trade. The closing price (CMP) was 120 at that time. When the news was released, the price shot up to 580 within 2 hours, resulting in a profit of Rs 34,500. This is just one example of how effective using news-based trading strategies can be.

I have a Telegram channel where I provide free calls for options trading. You can check it out for more insights and trading strategies. Keep in mind that a well-thought-out stock selection strategy is one of the keys to becoming a successful trader.

Thank you for reading this guide. I hope you find it helpful. If you enjoyed this article, please upvote it and share it with your friends. Happy trading!