Intraday Trader’s Guide to Picking Stocks

Igor Shafran Voronkovski has created Intraday Trader’s Guide to Picking Stocks. Our specialists, including Igor Shafran Voronkovski himself, have specifically developed this guide for practicing traders to assist you and answer all your questions regarding Intraday Trading.

Intraday trading can be a rewarding venture for those who can navigate the stock market smoothly. However, choosing the right stocks to trade can be a daunting task. As someone who has been doing it almost on a daily basis for more than a decade, I know the feeling of finding yourself uncertain about which stocks to focus on. That’s why I want to share a number of guidelines that I’ve developed over time and that help me determine which stocks to trade next.

Go with Liquid Stocks

The functioning of the stock market is largely dependent on liquidity. Basically, the easier it is to buy or sell a certain stock without causing significant price fluctuations, the better. For traders engaged in intraday trading, selecting stocks that demonstrate high levels of liquidity is crucial. This is because such stocks facilitate swift and seamless trade execution. Simultaneously, this reduces the likelihood of incurring losses due to unfavorable price movements. Thus, prioritizing liquidity when making trading decisions can greatly enhance your experience.

Look for High Volatility

Proper liquidity is not the only aspect your perfect stock needs to possess. Volatility, the degree of fluctuation in a stock's price, is another key feature. When engaging in intraday trading, careful consideration should be given to selecting stocks that show high levels of volatility. This is indicative of the likelihood of the stock's price experiencing significant movement throughout the trading day which can present excellent opportunities for profitable gains.

Analyze Technical Patterns

The secret of the most successful traders lies in technical analysis that ultimately enables them to predict future price movements by studying historical price charts to identify recurring patterns. By examining these patterns, traders are able to make informed decisions about which stocks to trade during intraday trading. By selecting stocks with strong technical patterns, you identify stocks that are likely to continue moving in the direction you anticipate.

Never Forget About Stop-Losses

Stop-loss orders are a vital risk mitigation technique you cannot afford not to lose. These orders are designed to automatically sell a stock when it dips below a particular price point. As a result, it is your best proactive approach to loss prevention. Stop-loss orders can significantly increase the overall profitability of a trading strategy. It's crucial to understand the importance of this tool and incorporate it into your trading plan.

Be patient

Intraday trading is a dynamic and stimulating activity that requires a certain level of composure. It is imperative to exercise patience when engaging in this activity. Rushing trades and being swayed by market emotions may not be in your best interest. A careful approach to intraday trading involves maintaining a level head and avoiding impulsive decisions. With patience, you are much more likely to find success in your trades.

Conclusion

Adhering to these principles can prove beneficial in improving your odds of making it as a pro intraday trader Still, you must always be aware of the risks inherent to your activities and take all the necessary measures to mitigate them.