Helping You Build Wealth With Honest Research
Since 1996. Try Now


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

India's Third Giant Leap
Discover the Best Category of Stocks to Ride this Mega
Opportunity at Our Upcoming Special Event

**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.


Intraday Stocks for Tomorrow

So, you want to be an intraday trader. That's great.

But do you have what it takes to be good at trading? Do you know the ABCs of trading or are you just punting money based on your broker's advice?

Many people have jumped on to the trading bandwagon recently to make extra money.

Unfortunately, most don't have the necessary knowledge or skill or even the temperament to become a good intraday trader. They don't know how to find intraday stocks for tomorrow.

Let's try and evaluate how to select intraday stocks for tomorrow. If done right, intraday trading can offer many advantages.

First, examine the market trend and stick to it.

This is one of the easiest ways to make profits from intraday trading. Market trends help in determining the movement of stocks.

A simple way to determine the trend is to look at price action and certain technical indicators.

There are more than 250 indicators and infinite more which a trader could develop on his own. So, it is completely on his own discretion what kind of indicators to use.

Some of the well-known technical indicators are focusing on price action, moving average convergence-divergence (MACD), relative strength index (RSI), etc.

Technical analysis considers statistics related to the market activity of the buys and sells. This analysis uses the stock's historical change in price and its trading volume.

A trader would believe that historic trends in a company's share price can be used to predict a future change in the share price.

Then there's moving averages. Moving average is a statistic used to chart a trend in a particular company's share price.

If the moving average increases at a faster rate, it indicates that a trader should buy the stock and vice versa. Traders also look at sectoral trend to trade in stocks. This method of identifying the market and sectoral trend is also known as top-down approach.

From a trading perspective, a top-down trader first analyzes the trend of the entire market, followed by the trend of the sector, and then the trend of specific stocks.

Apart from that, traders consider short interest as well as support and resistance levels.

Short interest measures the total number of shares of a company that have been sold short without being covered or closed out.

While support and resistance levels refer to price levels beyond which the price of an asset will not go in a certain direction. Support and resistance levels are not always reliable though. In a volatile scenario, they're not of much use.

Next, always trade in liquid stocks.

Liquid stocks are those which have decent trading volume daily and shares of these companies are exchanged on a daily basis.

If you trade in liquid stocks, you'll get to buy and sell the stock anytime you want.

This is not the case for illiquid stocks which don't have much daily trading volume. In these cases, you may as well just be stuck with it for many days.

Last, but not least, doing your own research should not be compromised even if it's trading.

Here, you'll enjoy the benefit of doubt and will be assured that the company won't be in news for any negative reasons.

Now that you know the steps, make sure you have an exit strategy. Because none of it will matter if you don't plan well and lay down certain rules.

And yes...don't forget to keep stop losses in place.

Stop loss is a way that could prevent your hard-earned money from draining beyond a certain point.

Traders need to be on their toes for quick entry and exits as the market volatility can hit them badly.

This way, you can make a living from trading stocks.

Check out this trading strategy that guarantees you never lose money with the use of stop loss.

For a deep dive in the world of trading, check out our guide on the secret to success in intraday trading.

You can also checkout our playlist on Intraday Trading on Equitymaster's YouTube channel.


Why Ambuja Cement Share Price is Falling

Mar 20, 2023

Ambuja Cement recorded its biggest intraday fall since 2006, tracking a sharp selloff in Adani group stocks.

Can Anyone Learn Trading?

Sep 15, 2022

The amazing story of Michelle Williams will convince you that successful trading can indeed be taught and learnt in a classroom.

Why IT Stocks Are Falling Today...

Apr 18, 2022

Infosys plunged over 9% intraday after the company posted its earnings. The fall was primarily because brokerage houses lowered their margins.

How to Pick Stocks for Intraday Trading

Nov 5, 2021

In this video, I'll show you how I pick stocks for intraday trading.

Intraday Versus Swing Trading

Aug 20, 2021

In this video, I'll show you the nuances between intraday and swing trading.

Earn Faster Intraday Trading Profits

Aug 18, 2021

A simple tool that can boost your day trading profits.

These Stocks Are Ready to Zoom

Aug 2, 2021

These stocks are the best from a traders point of view.

Why You Should Trade

Jun 22, 2021

This is why you should consider making consistent trading profits.

Don't Break These 5 Intraday Trading Rules

Jun 1, 2021

To become a better intraday trader, follow these rules religiously.

Is Intraday Trading For You?

May 13, 2021

Do you think you have what it takes to be an intraday trader? Find out in this video.

Dealing with Trading Losses

Sep 19, 2022

From personal experience, I can say that ample experience will reduce your turn around time and also help you bounce back faster and harder.

Why Jubilant FoodWorks Share Price is Falling

Aug 23, 2022

The company's shares were down over 5% intraday yesterday. Here is why...

Nifty 50 - At the Law of Averages

Apr 13, 2022

For intraday traders, the gap is filled at 17,530 level and the momentum may shift back to the higher levels towards 17,600-17620 zone.

My September Trading Blueprint

Aug 26, 2021

This is how you should trade in September.

How the Taliban Changed our Markets

Aug 19, 2021

In this video, I'll show you the immediate impact of the Taliban on our stock market.

Secret Hack of Millionaire Traders

Aug 10, 2021

Follow this simple hack to boost your intraday trading profits.

What Ails the Market?

Jul 8, 2021

Let me tell you why the bulls are finding it difficult to push the market higher.

Why Did Shares of Divi's Lab Rally Today?

Jun 10, 2021

The stock jumped 3.6% in intraday trade to hit its 52-week high.

5 Intraday Trading Rules to Never Break

May 31, 2021

To become a better intraday trader, follow these rules religiously.

This is How You Should Trade Intraday

Jun 19, 2020

In this video, I'll show you how to trade the market intraday like a professional trader.


What is the most successful intraday trading strategy?

There is no single strategy that is consistently successful in any form of trading, including intraday trading. Financial markets are dynamic. Traders all around the world are constantly learning and improving their knowledge and skills.

You will need to do the same. Stay up to date with charting techniques and keep learning all the time.

Soon you will be able to develop your own intraday trading strategy which will beat the market.

What is the secret of intraday trading?

The secret to day trading is simple. Follow a clear trading strategy.

You see, most intraday traders don't follow any strategy at all. They just 'read the tape' and hope for the best.

Or they trade in anticipation of some news that may move a stock intraday.

Rarely do they have a system to fall back on. If you have one, then you will immediately set yourself apart from 99% of intraday traders in the market.

Your intraday strategy must be based in the competent use of short-term technical charts. These will be 3, 5, 15, 25, and 75 minute charts. We suggest using Heikin Ashi candlestick charts.

You should also use technical indicators that are appropriate for intraday trading. The moving average convergence-divergence (MACD), average directional index (ADX), and Relative Strength Index (RSI) are three good choices.

Finally, always trade with a stop loss and follow sound money management principles.

Is intraday trading profitable?

Most intraday traders lose money. This is because they trade without a plan, without a strategy.

Many don't use stop losses. Often, they commit large amounts of capital in a single trade. In such situations, a single bad trade takes a big bite out of their trading capital which is hard to earn back.

To make consistent profits in intraday trading, you need to follow a sound trading strategy. This strategy should be built upon a good grounding in the fundamentals of technical analysis.

It will require some trial and error on your part. It will take some time. But once you have a winning trading strategy, intra-day trading will become profitable.