How I Pick My Stocks For Day Trading - Part 1

Day trading is buying a stock and selling it the samevolume I buy and wait. When I am satisfied of the
day before the markets close for the day. This isprofits I have made I exit and never give the trade
one way of trading in order to save on commissionsanother though even if it shoots through the roof.
and fees as well as to ensure some level of safety. IThe second way is to do a bit of research the
will disclose how I pick stocks for day trading andprevious few days and pick out the stocks with the
make a profit at the end of each week.most liquidity i.e. the stocks that are traded most on
To begin with I down load the copy of the entirethe exchange. Sorting out this list I then pick the
days stocks that have been traded on the Bombaystock which ahs a price I am comfortable with. I
Stock Exchange - as I live and trade in India. This isusually pick the stock between 20 to 30 Indian
called the 'Bhav Copy' and is available for free onlineRupees. This is called trading on volume.
the Bombay stock exchange web site home pageThe stocks that have the most volume offer the
after 6:30 pm every working day. Other stockmost liquidity. This means that it is comparatively
exchanges in the world have the same system andaeasier to buy and sell such a stock as it would be to
little research will reveal where they hide the record.sell a stock with low liquidity. I also pick a stock that
I use two methods to trade a stock during the day.has a lot of swing. This means that the stock has a
First of all I keep my ears peeled for breakingprice movement that is very wide and offers a lot of
positive news on a stock. This I get through thevolatility and good profits can be made by trading
television channels if and when the news emerges Isuch stock.
immediately prepare to go into action. I wait afterI will explain how I do my research in part 2 of this
the news has broken and watch the stockarticle.
movement. Should there be any spikes in price of