Thread by @JayneshKasliwal

Selecting Stocks For Intraday
A Thread For Weekend 🔖
How to Top Down Approach
Basic Stock Selection
RETWEET SHARE ! 🔄
#StockMarket
@kuttrapali26 @rohanshah619
1/n

Manual Stock Filteration WHY?
1. Doing manually requires a lot of effort and time , so it can be tiring.
2. You will gain edge over finding stocks if you do it regularly
3. After your own analysis you gain confidence, that will help you in more successful trading
2/n

Watchlist:
Picking Random Stocks Or FnO stocks Is a option
Midcaps and Smallcaps with High Liquidity will Provide high volatilityfor trades
Having stocks from all
sector and all sizes
Always have sectors in your intraday
watchlist
That will increase your winning ratio
3/n

SUPPORT AND RESISTANCE
1. Pick any stock
2. Check its hourly time frame for major support , resistance
3. Check its 15 min time frame for minor S/R
4. Use 4 to 5 days old data to get accurate levels
5. Can use wicks and tails for support resistance to get maximum points
4/n

Which time frame ?
You can use hourly timeframe to find the short term trend for the stock
If stock is forming lower lows or higher highs take trade in direction of trend
Use 15 min time frame to identify patterns and support resistance
Use 5 min to enter into trades
5/n

How to look for stock ?
Filter stocks in ascending or descending order
Randomly open charts and try to identify is you are finding stocks near support or resistance
Check if stocks are forming ascending or descending triangle pattern
Prefer stocks in Range to trade Anything
6/n

When to short?

1. When you see the price respecting the resistance and 5 min closing is below the resistance
2. Use candlestick confirmation like doji candles , spinning top candles , marubuzu candles
3.Look for Highly Liquid stocks
4. Avoid Margin if beginner
7/n

3. When support is broken you can short at pullback because sometimes it is just a shake off
4. Always look for volumes in downside
5. If you are new then check hourly timeframe trend , sectoral trend and trade in that direction
8/n

When to go long?
1. When you see the price respecting support and 5 min closing is above the support
2. Use candlestick confirmation like doji candles , hammer candles , marubuzu candles, candles with tails
3. Look for Volumes and sectoral trend
9/n
Examples:

Gap up and gap down problem ?
1. Never chase stocks that open gap up and gap down
2. If stocks open above our resistance levels then wait for pullback and check price movement
3. As soon as you see red candle on gap up opening you can short with small stop loss

10/n

4. If stocks open below our support levels then wait for pullback and check price movement
5. As soon as you see a green candle closing above support you can long
11/n

Stop loss rules in intraday:

Don’t risk more than 1 to 1.5%
Target should be just below resistance
Stop loss should be lower than support
Use trailing sl if price is just below the target and reverses
Dont Take leverege more than 3x to control the risk
Use trendlines
12/n

TOP DOWN APPROACH
If you are new to intraday :
Look for buying if nifty is positive
Look for selling if nifty is negative
If you are trading in bank check banknifty how it is doing
Example if pharma is positve look for long rade in pharma stocks
13/n

Psychology

Don’t overtrade
Don’t have FOMO
Remove stock from watchlist if you are tempted to take a trade after you exit the stock
Have a calm mind
Have defined risks
14/n
@AmitabhJha3 @StocksNerd