Rules for Picking Stocks When Intraday Trading

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Rules for Picking Stocks When Intraday Trading
How to Select Stocks for Intraday Trading: The Criteria
Figuring out how to identify the stocks for intraday trading is only the first step to a successful intraday trading trading strategy.
To choose the best stocks for intraday trading, most traders will find it beneficial to look at equities or ETFs
that have at least a moderate-to-high correlation with the S&P 500, Dow or Nasdaq indexes, and then isolate those that are relatively weak or strong, compared to the index.
Intraday enter-and-exit strategies are as numerous as traders themselves,
but again, by sticking to certain guidelines and looking for certain intraday trading signals, you are more likely to succeed.
Wait until the price moves up the downward sloping trendline, then when the stock
begins to move back down, you use this as a trading signal to make your entry.
Therefore, in selecting stocks for intraday trading, we can use a trendline for early entry into the next price wave in the direction of the trend.
When the futures pull back, a strong stock will not pull back as much, or may not even pull back at all.
Overall the market moved higher throughout the day,
and because XOP had such large gains on rallies, it was a market leader and outperformed SPY on a relative basis.
When entering a long position, buy after the price moves down toward the trendline and then moves back higher.

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