How to pick winning stocks for intraday trading
Intraday trading requires a strong knowledge on technical analysis and the ability to predict prices by looking at charts and indicators like RSI, EMA, Volume etc. However, for amateur traders, understanding the entire mechanism can be challenging. Hence, StockEdge has come up with the option to get ready-made scans made by a team of Market Analysts, so that the users can get investment ideas without having to research a lot.
Some of the scans include Price Scans- with options to check stocks which are having monthly, weekly, or even yearly breakouts. Volume and Delivery Scans reflect on the volume of stocks that have been bought and sold during a time frame. The Technical Scans include advanced indicators like Exponential Moving Average, Simple moving average, Relative Strength Index, etc. Fundamental Analysis scans offer a list of stocks from business management or a macroeconomic perspective that may affect the prices of that stock. Some other scans include Options, Futures and Candlestick scans, which are based on Candlestick patterns.
Selecting a list of Stocks
Based on the preferences of the trader, they can have a broad look at how various sections are performing, using the Sector Analysis. StockEdge also has the option of giving an exclusive insight into the portfolios of eminent personalities of the stock market, in case the traders want to follow their footsteps. Readymade investment ideas are also available on StockEdge, based on a combination of several scans used to come up with a list of promising stocks. StockEdge also allows the users to have a custom list of stocks that they would like to watch.
Having a basic understanding of technical analysis is critical for intraday trading. Candlestick patterns, volume indicators, price indicators, price momentum, support and resistance- these need thorough understanding for intraday trading. Learning how to read charts, indicators is crucial.
Support is that price level in which traders expect the price to bounce and move upwards. Drawing at a lower level where many candlesticks have dipped and bounced can be a simple indicator of support. Moving Averages are another great way to find price support. 20-day or 55-day moving averages are commonly used to find price supports. Any dip below the support confirms a breakdown or dumping where traders start selling more.
Conversely, resistance refers to the price level at which the traders start selling, hoping that the price will start dipping from there. If the price exceeds the support level, it is a confirmation of a breakout.
Taking trade decisions
Before arriving at a conclusion to buy or sell stocks when you are doing Intraday Trading, it is important to judge the viability of the project, environmental factors which might affect the price. Moreover, it is important to analyze the charts to look for price movements, indicators to ensure that you are buying around the lowest range and selling around the highest. With StockEdge, this entire process becomes hassle-free. If you are a professional who does not have time for research, StockEdge makes Intraday Trading easy.