Liquid stocks are considered to be the best intraday stocks to trade. This condition is basic as it has a direct effect to hazard and cash administration process for consistently broker.
While there are no hard and fast rules a minimum liquidity ratio of 10 should be the benchmark to consider a stock for intraday trading.
How to buy stocks in intraday. It regards have high normal day by day volume for these stocks. For buying stock in intraday trading there is a common procedure that should be followed in intraday trading. The rest is about waiting and watching.
However most successful day traders will tell you that intraday trading is only 10 action. In simple terms the stock should have an ample number of traders buying and selling the stock at every given point of time during the day. Liquidity average daily volumes market capitalisation.
One of the basic measures of liquidity is to view daily volumes as a proportion of market capitalisation. The liquidity of a stock is measured by the ease at which you can buy or sell it at the current market price. One of the prime criteria for intraday trading is the volume of the stocks.
It is most recommended to purchase stocks that are of high volume. Many new investors believe that intraday trading is an action packed way of investing in stocks. Then you need to get the knowledge from the expert and after that you need to follow the approach with discipline.
The total number of the shares that are traded in a particular market at given reflect time reflect volume. To choose the best stocks for intraday trading most traders will find it beneficial to look at equities or etfs that have at least a moderate to high correlation with the s p 500 or nasdaq. First of all you need to open a demat account and trading account.
A stock ought to sufficiently offer liquidity i e intraday volume.