Intraday trading is all about picking the right stock at the right time. But most beginners struggle because they don’t know which stock to trade and when to enter.
Which stock should I trade?
If you’ve ever picked a stock and got stuck in sideways movement, don’t worry. I’ll share a simple stock selection strategy that I personally use. If you follow this, you will avoid 90% of bad trades where traders lose money.
Let’s go step by step and keep things easy.
Step 1: Pick Stocks from the Top Gainers & Losers List
To trade intraday, we need stocks that are moving—not the ones that stay flat. The best way is to check the Top Gainers & Top Losers list on:
- NSE India
- Moneycontrol
- TradingView
- Your broker’s trading platform
Important Rule:
Only consider stocks that have moved between 0% to 10%.
Avoid stocks that have moved more than 10%.
Example:
- Stock A is in the Top Gainers list with +6% movement ✅ → Consider this stock.
- Stock B is in the Top Gainers list with +12% movement ❌ → Avoid this stock.
Why avoid stocks above 10%?
- They are already overbought and can reverse anytime.
- You might get trapped if you enter late.
This step already filters out risky stocks.
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Step 2: Wait for 30 Minutes Before Taking Any Trade
Many beginners make the mistake of entering a trade in the first 5-10 minutes. But in this period, the market is very volatile, and price movements are random.
What should you do?
Wait for 30 minutes and let the market settle.
This helps in identifying clear trends and momentum.
Step 3: Use the First 5-Minute Candle as a Reference
Once the market opens, look at the first 5-minute candle and note its closing price.
How to use this?
If the stock is trading above the first 5-minute close, it is a strong stock.
If the stock is inside the first 5-minute range, avoid it.
Example 1 (Good Stock to Trade)
- Stock A’s first 5-minute candle closes at ₹500.
- At 9:30 AM, the stock is at ₹510 (above ₹500). ✅
- This means the stock is showing strength.
Example 2 (Stock to Avoid)
- Stock B’s first 5-minute candle closes at ₹600.
- At 9:30 AM, the stock is at ₹595 (inside the range). ❌
- Avoid this stock—it is not moving properly.
Additional Rule: Even if a stock breaks the first 5-minute high but later falls back inside the range, do not trade it.
Step 4: Check First Swing High & Low (After 30 Minutes)
By 9:45 AM, every stock will have created a Swing High and Swing Low.
Now, use this as a filter:
If the stock is trading above the first Swing High, it’s a strong trade.
If the stock is inside the Swing High & Low range, avoid it.
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Important Rule Before Taking Entry
Even if a stock breaks the first swing high and rallies up, before entering the trade:
Check if the stock is still trading above the first Swing High.
If the stock has come back inside the first Swing High-Low range, do not trade it.
Examples to Understand This Clearly
Example 1 (Good Trade Setup)
- Stock A’s Swing High: ₹520 | Swing Low: ₹495
- At 10:15 AM, the stock breaks ₹520 and goes up to ₹530 ✅
- At 10:30 AM, it is still above ₹520 ✅
- This is a strong stock for entry! 🚀
Example 2 (Stock to Avoid)
- Stock B’s Swing High: ₹450 | Swing Low: ₹420
- At 10:00 AM, it breaks ₹450 and goes up to ₹460.
- At 10:30 AM, it comes back inside the range and trades at ₹445. ❌
- Avoid this stock—momentum is lost!
This rule will help you avoid getting trapped in false breakouts.
Final Checklist Before Taking a Trade
Is the stock from the Top Gainers/Losers list (but under 10%)?
Is it trading above the first 5-minute candle close?
Has it broken the first Swing High (after 30 minutes)?
Is it still trading above the first Swing High (not back inside the range)?
If all these conditions are met, take the trade confidently!
Why This Method Works
Most traders lose money because they:
Pick stocks randomly.
Trade inside sideways markets.
Enter too early and get trapped.
But by following these steps:
✔ You only pick high-momentum stocks.
✔ You avoid sideways traps.
✔ You trade with a clear trend.
This method doesn’t guarantee profit, but it increases your success rate and helps avoid unnecessary losses.
So next time you trade, follow these steps and see the difference!
Happy trading!
