Day Trading Stock Selection Strategies For Huge Profits In 2019-Two Easy Steps

Do you feel that picking a stock to day trade is difficult ??

Actually, it is.

When it comes to day trading, picking stocks with high momentum can provide you huge returns.

The worst thing that can happen to a day trader is getting stuck in a low momentum stocks.

We all get frustrated when we don’t make money after buying or selling a stock.

So is there any magic rule to pick the perfect day trading stock ??

Or can you randomly pick any stock and will it become a high momentum stock for the day ??

Well, let me tell you one thing very clearly, picking high momentum stock every single time is impossible.

But don’t get disappointed.

To make a consistent income from day trading you don’t have to pick high momentum stock every single time.

You just need to pick a stock with decent volume.

Avoid illiquid stocks

In stock markets, stocks with low volume are difficult to buy or sell.

Speculators will not be interested in buying or selling such stocks.

Below is a candlestick chart example of illiquid stock.

Momentum will be low in such stocks.

The dashes in charts show low volume and less change in price.

Other than illiquid stocks, you can trade in any other stock.

Now what you can do is either pick a day trading stock in a live market or pick 1 day prior to trading day.

I usually like picking stocks for day trading in live market hours.

But if you want to pick stocks one day before trading day, follow the below-mentioned strategies.

Look for stocks which are nearing or just approached a support or resistance zone

If you find a stock which just approached the support level, add alert for that stock. On the next trading day, you can expect the stock to bounce up from the support levels.

Support levels are used by institutions and other market speculators as an entry price level.

Same way if you find stock at a resistance level, add alert for it and use it to short the next day.

Check out below in charts how stocks react the next day after nearing or reaching a support or resistance levels.

day-trading-stock-selection-with-previous-support

In above-shown candlestick chart, prices reached support levels previous day.

We have considered right arrow marked green candle tail or wick as a support level.

Below you can see 5 min intraday chart of above-shown stock and how it reverses the next day after reaching the support level and made a large green candle.

intraday-reversal-after-reaching-support-level

Take a look at another stock which reversed after reaching support levels.

Same way, you can track stocks reaching the resistance levels and use them for selling in the next day trading session.

This above-mentioned process will become easy once you start following it.

Now let’s look at another way of picking stocks for day trading.

Use Bollinger Band

Sometimes I scan for stocks which have gone above upper bollinger bands or gone below lower bollinger bands.

Stocks above bollinger bands are good for selling the next day and stocks going below bollinger bands can be used for buying.

If you had marked this stock on the previous day, you would have made good money by day trading this stock.

I have just shown two ways of picking intraday/day trading stocks.

If you want me to post more ways of choosing the intraday stocks use the comment section and let me know.

I will be happy to share.

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