There are many reasons why you should buy stocks for intraday trading. One of the most important reasons is the volume of trading. If a stock has a high volume, it means that it is highly liquid. These stocks are often small companies with prices starting at under Rs 20. Once you decide which stocks to buy, determine an entry price and a target price. You should also place a stop-loss order to limit your risk. It is also a good idea to monitor your trades closely and exit your position when the price hits the target price.
In addition to liquidity, other important factors to consider are volatility and news. While volatile stocks may seem to offer the best opportunity, you should be careful with these stocks. Traders should also avoid stocks with high promoter holding or limited free float. These stocks can be manipulated by their promoters, putting their trading results at risk. It is crucial to choose objective stocks for intraday trading.
Another important factor to consider when deciding on which stocks to buy for intraday trading is market liquidity. Smaller stocks tend to be less liquid, so make sure you choose stocks that are liquid at various price levels. This will ensure that you can exit in time if needed.
