How to Pick Stocks for Day Trading in India?

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How to Pick Stocks for Day Trading in India?

How to Pick Stocks for Day Trading in India? ( Beginner’s Guide ):

Do you know about Day Trading?

If no, then you do not need to get stress out as we will discuss the whole topic of the day trading as this will be beneficial for all the beginners’ traders or not in the Indian Stock Market.

So, this article is about “How to Pick Stocks for Day Trading in India?”

And with this, you will get the basics understanding and the normal terminology used in the day trading.

Before starting the day trading, you need to first decide your risk appetite and the capital allocation, after that only you should make decisions for further.

So let us first understand with the definition of “Day Trading”

Day Trading

Day Trading defines when the traders buy or sell the shares or their position on the same day during the market hours.

This trading is also defined as the “Intraday Trading”.

In day trading, the shares are not visible in the Demat account but rather than they are transferred to the trading account.

As the day trader does not get ownership for all the shares he owes in day trading because the positions get squared off by the end of the market hours.

Day Trading is beneficial for as a short-time method or way to earn money by using the proper knowledge about the market situations and its volatility.

This type of trading is suitable for that trader who can take the risk and can follow the market closely.

The trader who can closely follow the market and can perfectly time the trades then only he or she is capable to turn out to be profitable in a day trading.

All these perfections require more efforts likewise to learn and study the market, to read and understand the theories of successful traders and to imply the knowledge practically in the stock market.

Let’s observe about the instruments traded in day trading.

What can be traded in Day Trading?

  1. Stocks or shares
  2. Currency
  3. Options
  4. Futures
  5. Forex
  6. Commodities
  7. Cryptocurrencies (as they are now legal in India)

Learn from books, articles, magazines, newspaper and more sources regarding the concept and events in the stock market.

For knowing the strategies you can read our blogs on “Intraday Trading Strategies”

Learn more about the patterns and focus on the technical analysis part if you want to become a professional trader.

Some more aspects that are important for the traders to point before day trading are:

  • Capital Allocation
  • Risk Management
  • Risk per Trade
  • Use the Stop Loss while trading
  • Maintain a habit
  • No Greed and No Fear Factor
  • Read and Learn More
  • To set up unique strategies
  • To follow the above points with discipline

Now I would like you to introduce with some important tips for picking the stocks for Day Trading:

How to Pick Stocks for Day Trading in India?

  1. Starting with the first rule, you need to do trading in liquid stocks. This will help you in the later course when you just exit your day position. Illiquid counters do the other of what eminent share market tips do. Always use NSE day calls or BSE day calls insufficiently liquid counters. Gain confidence after that only eye for day trades spinoff technical trades.
  2. Then the second rule is to pick stocks that have medium to high volatility. Don’t punch the trade-in that stocks that exhibit terribly low swings. Then, your target worth might never be reached in a very day. As a part of your day trading methods, keep on with stocks with a fair quantity of volatility.
  3. Proceeding further with the third rule is to do trading solely with the present-day trend. Avoid taking contra positions that are diametrically opposite to general market movement for the day.
  4. After that, the fourth rule is to punch that trade with buying stocks in an uptrend and trade weak in stocks in a very downtrend. This rule should be practiced diligently. All you’ve got the simplest day tips, trading strong in stocks in a downtrend may be a direction for disaster.
  5. The fifth rule is to hold back, several investors exploitation day trading tips usually get impatient. You’ll be needed to attend. Once there’s a pullback, traders will get handsome profits. So, build patience an integral part of your day trading is it equity or commodity.
  6. Lastly, the sixth rule is the need for regular profits from day trading as operating. There’ll continually be trades wherever you create cash, and trades wherever you do not build cash. It’s vital to legitimatize share market tips that are showing gains. Profit booking helps you gain confidence.


With the help of this article on “How to Pick Stocks for Day Trading in India” in the end I hope this article helped you with the understanding of the day trading and also about the pointers that will be helpful for picking the stocks for day trading.

In the end, I would also like to add one thing that in day trading “Don’t borrow money for trading or take too much of leverage while trading that you are not capable to repay it when you are in a situation of a loss”.

 With this, I want to make a conclusion that while punching the day trades always prepared with the stop-loss and targets number and insert the values while you are punching the orders as in day trading only stop-loss is the tool that can reduce your losses.

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