How to pick stocks for day trading? an insider’s guide. Day trading is risky compared to investing, at the same time high yielding. Choosing right stocks for day trading is more important to be profitable.I have listed some professional tricks to find good day trading stocks.
1.High Beta Stocks:
High beta shares reflect the stock market index with high price fluctuations so they are good for day trading.High beta stocks are traders’ favorite as the nature of high movement helps them to make quick bucks.when index trend changes, high beta stocks trend changes quickly. so must keep a close watch on the index. Click here to know Dow movers with contribution points.
2.Bollinger Band Top or Bottom Stocks:
The shares that are touching the top of the Bollinger band are likely to go up 3 to 5 percent.The shares that are touching the bottom of the Bollinger band are likely to go down 3 to 5 percent.So one can select these stocks for day trading. Personally, I use these techniques to select my day trading shares.
3.Top Gainers and Top Losers:
John and Paul can not change the stock price by 2%. if a stock moves more than two percent then some big high networth individuals entered the stock, or insiders entered the stock. So these stocks will follow the trend. Don’t trade opposite on top gainers and top losers.
I do not advocate predefined stock portfolio for daily trading. Because you will have a bond on a few stocks, and same stocks do not perform well every day. The market is changing every day its favorite shares. So you must change your day trading shares daily.
5.News Based Stocks:
somebody choose news based stocks for day trading. It is a type of day trading stock selection criteria. But sometimes Buy on rumor, sell on news work. So be careful while trading news based stocks.
How to Pick Stocks for Day Trading:
I preferably advise selecting shares based on Bollinger band and top gainer and top loser for day trading. Here, how to pick stocks for day trading I listed 5 techniques to pick day trading shares. Select any one strategy for your trading or comment your strategy here to help others.
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