To become a successful trader, you need to understand the market yourself. It means learning to find your own stock ideas in everyday trading. You’ll need to wake up before the market opens and start your analysis. 

If you want to find the best stocks to trade, you need to know:

  • trading volume and breakthrough potential;
  • volatility;
  • risk of trading stocks with high growth potential.

How to find shares for intraday trading: what is intraday trading?

In fact, it’s just trading shares in one trading session. If you buy shares and sell them on the same day, then you only trade during the day.

But if you want to succeed, you need to develop a strategy and stick to it. It is the hardest part. Relying on emotions such as fear and greed, instead of preparation, is the main cause of failure of most day traders.

Victor Tran, Co-Founder & CEO of Kyber Network and Kyberswap.com, discusses the tech tools he uses to manage his business

What criteria are best used?

There are important points to understand for dealing with stocks and trading on the stock exchange.

Volume

High trading volume is the first sign of a good potential deal.

The volume represents the number of stock buyers. After all, trading is a situation of supply and demand. If everyone wants stock, the price goes up.

Volatility

Volatility is another important component of good day trading.  Volatility is the secret of playing within the day.

For example, television hates volatility. That’s one of the reasons the anchors advise anyone who listens to them to stay away from the penny sector.

But if you want to grow a small score quickly, volatile stocks can be a good option – if you understand the rules, risks and strategies.

Liquidity

To prevent the dark side of volatility, your stocks need good liquidity. It means that you can withdraw from the transaction whenever you want and fix the profits according to your trading plan.

You want to look for stocks that are projected to move at least a million shares a day. It sounds like a huge number, but it’s the minimum you need to make sure you’re not stuck in a deal.

You can set up a screener to collect shares traded for at least 50,000 shares at the premiere. If they continue to gain momentum, they can make a solid deal in the future.

Price

It will not bring or break the deal. But for you, a trader, it is very important.

How big is your account? What is your risk tolerance?

All these are important questions to ask when checking shares. Many people do not want to take risks if it is related to penny shares. Perhaps they will check stocks worth between $5 and $10. They are missing out on the opportunity to make huge profits for greater confidence.

Low float

Another thing I’m looking for is a low-float stock.

Fleet refers to the number of shares that are publicly available and actively traded. This is the side of the offer.

We usually call stocks with less than 40 million shares in circulation low-float stocks. When the stock is large, the limited offer will make the price go up. And it is what you want as a day trader.

Stocks with higher float may move too, but they need much more. Stocks like Apple will probably never get as big a percentage increase as low-circulation stocks.

Percentage change

All these ingredients should yield a large percentage of profits for the shares you are going to trade. The shares that rose at the premier could potentially give you a boost.

But the wave can surge, and then plummet like you’re dreaming about your new Lamborghini. You can’t fall in love with numbers. But they are a good sign of the future movement that you could trade if the setting is right and consistent with your strategy.

Catalysts

Often you are looking for a reason why the target price is moving. Otherwise, your deals will be rather useless.

On the other hand, thanks to high-quality news catalysts, the campaign can work for several days. These may be financial announcements, press releases or news concerning the entire sector. A catalyst can cause several green days in a row.

If you wait too long, important news will already be included in the stock price. If that happens, you may be mistaken in this classic market advice – buy rumours, sell news.

No one can guarantee that even the best news will lead to a shift in actions. Such thinking is for amateurs. But quality news is one big hit on what makes a good deal.

Hot sector

News can also cause the movement of an entire sector. Or sometimes a hot sector is just something people pay attention to.

For example, the hot year 2020 for Tesla elicited sympathy throughout the electric vehicle sector. Referendums on the legalization of marijuana led to a week-long surge in this sector.

How do I know which stocks to trade?

Here is an example of the criteria that you can define for yourself:

  • the price is from $1 to $10 – this is the best place to focus if you have a small budget;
  • percentage change of at least 10% – if you follow the rules of the pattern-day trader, your trades are limited. 

You need liquid stocks. It means that demand will continue to raise the price. It also means you’re more likely to get out whenever you want.

When you learn to trade, the greatest danger comes from a lack of discipline. Make a trading plan and stick to it.

Do not dwell on what you can earn, and never assume that you can continuously earn a certain amount of money every day. The market can change quickly. Always be aware of the risks and be prepared for anything.