To choose the best intraday stocks, you have to analyze their liquidity and volatility. Despite being a highly specialized and sophisticated form of trading, intraday trading is not appropriate for every trader. The amount of risk that you are willing to take should be carefully weighed against your capital and risk tolerance.
Technical traders usually focus on stocks with strong momentum and high trading volume. They also pay special attention to shares near support or resistance levels. Support levels represent the lower limit of a price range. When a stock breaks through these levels, traders will be looking for opportunities to take advantage of the breakout. To find these breakouts, most traders follow the top gainers or losers.
Choosing stocks for intraday trading requires sensitivity to news flows and chart patterns. You should use reputable brokers who can help you read charts. When selecting stocks for intraday trading, you should also consider the company’s history. Remember, you can’t trade stocks if you don’t have enough information.
In addition, you should focus on stocks that are trending because they are getting news coverage. A high volume stock is ideal for day trading because it has high demand. Also, look for the best gainer and biggest loser of the day