Sun. Jul 14th, 2024
7 Best Ways to Pick Stocks for Intraday Trading

Are you wondering how to pick stocks for intraday trading? Intraday trading can be a profitable and exciting way to make money on the stock market. However, it’s important to pick the right stocks for intraday trading. In this blog post, we will explore the 7 best ways to pick stocks for intraday trading. By following these tips, you will be well-prepared to take advantage of short-term movements in the stock market. Read on to learn more!

7 Best Ways to Pick Stocks for Intraday Trading

Look at the price chart

When it comes to picking stocks for intraday trading, one of the most important things you can do is look at the price chart. By examining the chart, you can identify patterns and trends that could help you make decisions about when to buy or sell. You can also see whether a stock has been rising or falling over time, and if it is currently in an uptrend or a downtrend. Knowing this information can help you decide when to enter or exit a trade. Additionally, you can use technical indicators like moving averages and support and resistance levels to give you additional clues as to what the price might do next. By taking the time to look at the price chart, you can gain valuable insights into how a stock is performing and make better decisions when trading.

Study the volume

When it comes to intraday trading, one of the most important factors to consider when selecting stocks is the volume. Studying the volume of stocks can help you identify which stocks are likely to be more volatile and provide greater opportunities for profitable trades. To study the volume of a stock, look at the total number of shares traded over a certain period of time. This will give you an idea of how active the stock is in the market. Also, take note of the days when there is unusually high or low volume for a particular stock, as these days may be indicative of an impending trend or price movement. By studying the volume of a stock, you can gain valuable insight into its potential for profitability in intraday trading.

Analyze the company’s financials

Analyzing the company’s financials is one of the best ways to pick stocks for intraday trading. Knowing the company’s financial health and performance can help you understand its potential to generate returns. With this information, you can identify companies that are likely to outperform the market on a daily basis. 

Before investing in a stock, it is important to understand the company’s balance sheet, income statement, cash flow statement, and other related documents. This will give you an insight into how the company is doing financially, allowing you to make an informed decision about whether or not to invest. 

You should also be aware of the company’s history and recent performance in order to gauge its future prospects. Look at the company’s revenue, profits, and dividends over the past few years to get an understanding of its performance and where it may be headed. Evaluate how management is handling different aspects of the business, including strategies for growth and development. 

Finally, take a look at the company’s competitive landscape. Understand who their competitors are and how they are performing compared to them. This will give you an idea of how successful the company is compared to its peers and if it is likely to perform better or worse than them in the future. 

By analyzing the company’s financials, you can gain valuable insights into its performance and potential as an investment. Doing your due diligence on a stock before investing in it can help you make wise decisions that will lead to long-term success in intraday trading.

Check the news

If you’re looking to make successful intraday trades, one of the best things you can do is to check the news. Staying informed of the latest economic events and developments in the stock market will help you make educated decisions about when and how to buy and sell. This includes keeping up with industry reports, financial publications, business journals, and even daily news programs. Knowing the current news of the day will give you an edge when deciding whether or not to enter a trade. Additionally, checking the news for any sudden price changes can be helpful in deciding if you should jump on a potential opportunity. For example, if you notice that a company’s stocks are trading at significantly lower prices than its competitors, checking the news may provide some insight into what’s happening. One thing that may have happened is that a new product was just announced by their competitor and investors are afraid that it might affect sales of this company’s products. In this case, checking the news would allow you to assess whether these fears are well-founded or not.

Consider the technical indicators

When it comes to intraday trading, it is important to consider the technical indicators when selecting stocks. Technical indicators are used to identify patterns and trends in the stock market, which can help you make more informed decisions when trading. Some of the most popular technical indicators used by traders include moving averages, Relative Strength Index (RSI), Average Directional Movement Index (ADX), and Volume. 

Moving averages are a form of trend following indicator that tracks the average price of a stock over a certain period of time. It’s a great way to determine if a stock is trending up or down over a certain period. The Relative Strength Index (RSI) is a momentum indicator that measures how fast a stock is moving up or down. It can be used to identify overbought or oversold conditions in a stock. The Average Directional Movement Index (ADX) is another useful indicator for traders. It measures the strength of a trend, helping to identify potential entry and exit points for trades. Lastly, Volume is also an important technical indicator for intraday traders. Volume provides insight into the amount of shares being traded for a particular stock, helping traders decide when to enter and exit positions. 

By utilizing these technical indicators, you will have the tools necessary to make more informed decisions when trading stocks for intraday. It’s important to remember that each technical indicator has its own strengths and weaknesses, so be sure to use them wisely. With the right knowledge and understanding, you can use these indicators to your advantage and increase your chances of success in intraday trading.

Use a stock screener

Using a stock screener is one of the most effective ways to pick stocks for intraday trading. A stock screener is a powerful tool that allows you to filter stocks based on certain criteria. This makes it easy to identify stocks that fit your trading strategy and have the potential to make profitable trades.

Stock screeners can help you quickly find stocks that are overbought or oversold, have high volume, and are exhibiting other technical indicators that may signal an opportunity for intraday traders. Additionally, stock screeners also allow you to narrow down stocks by industry, market cap, sector, and even geographic region. This can help you to focus on the stocks that are most likely to be successful for your intraday trading goals.

When using a stock screener, it’s important to remember to keep your criteria simple. Don’t try to include too many parameters when filtering stocks – too many filters can lead to missing out on great opportunities. Instead, try to focus on just a few key criteria that will help you quickly identify stocks with the highest potential for intraday trading success.

Paper trade first

One of the best ways to pick stocks for intraday trading is to paper trade first. Paper trading is the process of simulating stock trades without actually investing any money. It’s a great way to practice trading, hone your skills, and get comfortable with the markets before putting your hard-earned money at risk.

Paper trading is also invaluable for testing out strategies and ideas. When you have an idea for a new trading strategy, paper trading is the best way to test it out. You can see what works and what doesn’t before risking any of your money in the markets.

If you’re just starting out with intraday trading, paper trading is an absolute must. Don’t try to jump in head first without taking the time to practice and develop a strategy that works for you. Take the time to learn the ropes, make mistakes on paper, and get familiar with the markets before trading with real money.


In conclusion, intraday trading can be a great way to make short-term gains in the stock market. With the right strategy and approach, you can make money from day trading. However, it’s important to remember that intraday trading is a high risk activity and is not suitable for everyone. Before you jump in, make sure you are comfortable with the level of risk involved and understand the strategies you will use to pick stocks. By following the seven best ways outlined in this article, you should be able to find stocks that are primed for success and help make your intraday trading profitable. In conclusion, intraday trading is an incredibly popular and lucrative form of stock trading that can help you make quick gains in the market. However, it is important to remember that it requires a great deal of research, planning, and risk management. By following the tips and strategies outlined in this article, you should be able to make informed decisions that will maximize your profits and help you succeed in the world of intraday trading.