Stocks that react quickly to news may be good day trading candidates. News flow can give traders hints as to what a stock will do next and allow them to place buy and sell orders accordingly. There are many articles out there that will help you choose which stocks to buy for intraday trading. For example, Kotak Securities offers a free trade plan and helps its members choose the stocks that they want to buy.
In order to be successful trading penny stocks, you need to understand the basics of technical analysis. First, you need to know what the risk-reward ratio is for your chosen stock. Secondly, you must be able to find the support and resistance levels for your chosen stock. You should also be able to place a stop loss order for any trade that you make. This will help you minimize your risk. Lastly, you should monitor your trades closely to avoid making costly mistakes.
Secondly, the market doesn’t always follow trends. Sometimes, the trend reverses overnight and the stocks may not reach major highs or lows. The key to making money with intraday trading is to pick stocks that can make a large enough move over the short term. For example, if you buy a stock at $0.10, it should move enough for you to make between $0.15 and $0.20.
