How to Select Stocks and Manage Risk in Equity Intra-Day Trading

Introduction

Equity intra-day trading is a form of trading where you buy and sell stocks within the same trading day. It is a popular way of making profits from the fluctuations in the stock market. However, it also involves a high level of risk and requires a lot of skill and discipline.

If you are interested in equity intra-day trading, you need to understand how to select stocks, manage risk involved, and determine the best entry and exit positions. This article will answer these questions and provide you with some useful tips and tricks.

Before you start trading, you’ll need to open an online Demat account with a reliable brokerage firm. A demat account is an account where your stocks are held electronically. It makes trading faster, easier, and safer. You can open a demat account online with Goodwill, one of the leading brokerage firms in India. Goodwill offers low brokerage fees, advanced trading platforms, and expert guidance. To open a demat account online with Goodwill, visit their website and fill out a simple form.

How Do I Select Stocks for Equity Intra-day Trading?

Selecting stocks for equity intra-day trading is not an easy task. You need to do a lot of research and analysis before you decide which stocks to buy and sell. Some of the factors to consider are:

Liquidity: Choose stocks with high trading volumes and low bid-ask spreads. This ensures quickly and fair price transactions.

Volatility: Look for stocks with significant price movements and fluctuations. This will give you more opportunities to make profits from the changes in the market.

Trend : Select stocks that are following a clear uptrend or downtrend. This helps identify the market direction and trade accordingly.

Fundamentals: Focus on stocks with strong financial performance and growth potential. It will ensure that you are investing in quality companies that can generate consistent returns.

To help you select the best stocks for equity intra-day trading, you can use Goodwill’s stock brokerage calculator. This tool helps you to calculate your brokerage fees, taxes, and profits for each trade. You can use it to compare different stocks and find out which ones are more profitable for you. To use the stock brokerage calculator, visit Goodwill’s website and enter the details of your trade.

Conclusion

Equity intra-day trading can be a rewarding but risky way of making money from the stock market. You need a clear strategy, good knowledge of the market, and strong discipline to succeed in this type of trading. In this article, we have answered some of the common questions that you may have about equity intra-day trading, such as how to select stocks, how to manage risk, and how to time the market.

If you are ready to start your equity intra-day trading journey, you’ll need to open a demat account with a trustworthy brokerage firm. A demat account is an essential requirement for stock market trading as it allows you to hold your stocks electronically and trade them conveniently and securely. Start your equity intra-day trading with Goodwill and enjoy the benefits of the stock market.