There are thousands of equities to choose from in the stock market. Traders who execute intraday strategies attempt to make a profit due to the price changes of a particular asset.
Identification of the right stocks for intraday trading involves isolating the current market trends and capitalizing on that trend. You can also subscribe to KLSE stock tips to get useful market updates.
Here are some strategies that will help you to select stocks for intraday trading in Malaysia.
#1. Liquidity of Stock
Liquid stocks tend to have high trading volumes. This allows for larger quantities to be sold and purchased. Since intraday traders are dependent on speed and precise timing, the high trading volume makes getting into and out of traders easier.
Some Malaysia intraday stock pics will help you to identify such stocks with high trading volume and significantly high liquidity.
#2. Medium to High Volatility
Intraday traders require price movements in order to make a profit. They can choose stocks that tend to move a lot, either in dollar terms or in percentage terms. One of the important KLSE stock tips is to choose stocks that tend to move 3% or more. These stocks will have large intraday moves and can result in huge profits.
#3. Group Followers
Look for all the intraday traders. Almost all the traders look for stocks that move in correlation with the index or sector. This means that when a particular index or stock ticks upwards, the individual stock price also increases. This information is particularly important if the trader will be trading the strongest or weakest stock every day. Focus on stock tips Malaysia to get all the information related to market movements and trading sentiments.
#4. Stock Selection on the Basis of Business Cycles
One of the most fundamental approaches to choose Malaysia Intraday stock picks. Each company that specializes in a particular seasonal product will witness a particular cycle in its business.
So on the basis of the business cycle, the prices of stocks move. This can be used as a strategy for short-term stock selection.
#5. Following the Trend Strategy
One of the most important KLSE stock tips is to follow the past market trend. All the stocks listed follow a particular trend. This can be used as an Intraday trading strategy.
After the markets have seen a downtrend there will be minor changes in the prices. In such cases, choosing the stock which replicates the index can be a good strategy to earn profits.
#6. Trade Stocks in Uptrend, Weak Stocks in Downtrend
When the indexes and markets are bullish, traders should look to buy stocks that are moving up more aggressively than the futures. When the futures pull back, a strong stock will not pull back as much. These are the stocks to trade in an uptrend because they tend to lead the market higher and, thus, provide more profit potential.
We hope that these strategies will help you to choose stocks for intraday trading in Malaysia.