I could'nt select shares for day trading. can any one help me.
Basis of selection of stocks for day trading:
1) Select actively traded stocks, like with good monthly average turnover.
2) Among them pick high volatility stocks ONLY IF your risk appetite is more, otherwise go for medium volatility stocks. Low volatility stocks yield too little to cover the brokerage expenses.
3) Pick stocks from actively traded sectors and with good correlation to the sectorial index / Sensex / Nifty etc.
4) Pick the leaders in each sector.
To put in simple terms, I feel it is best to select stocks from Sensex 30 stocks belonging to the sectors Oil&Gas, Banking, IT, Metals & Autos and with a volatility matching with one's risk appetite.
All the best.
murthymsr
