Methods for Intraday Stock Selection
Important Factors While Selecting Stocks For a trader to select best stocks for intraday trading , it is crucial to consider these important factors: Liquidity and Volume Liquidity refers to the ease with which a stock can be bought or sold without significantly impacting the price. High liquidity means there are a huge number of traders who are ready to trade the stock at that price. And volume refers to the number of shares traded. While choosing stocks it is potentially beneficial to select highly liquid stocks for intraday trading. This way, if you place an order for any number of shares, it will get fulfilled easily, and you will be able to buy and sell the shares at your desired price, whereas a lack of liquidity can lead to delayed execution of the order, not getting the desired price or your order might not get fulfilled. For example, before entering a position, traders can use tools like Bid-Ask Spread to gauge liquidity. A stock with a wider difference between bid (pric...