Stock Selection for Shortterm Trading

Most active traders face a dilemma regarding choice of stocks for Trading. With experience they may gravitate towards their favorite sectors or familiar names.

1. Useful stock screener at Icharts
2. Most actives list at NSE on the previous day
3. I personally prefer stocks fronm Nifty as midcaps may have wild movements intraday
4. Atleast if the stock is in F&O there is some sort of balance through options
5. Significant news on the stock. I try to avoid trading on the breaking news unless I already have a position and a view on the stock.
6. If the stock behaves whackily , try to avoid it for intraday trading ( eg Everonn, Educomp)
7. I try to distinguish between morning, afternoon, evening movement in the stock.
8. I try to fade extreme reaction of the stockspecific news ( Extreme is gauged by 2 sigma movenent of the stock's return in the previous 250 days )
9. Avoid small and midcaps as they are jerky and force the trader to shift timeframes
10. In the earnins season, I have to be careful of trading the results announcements after 2.30 pm ( I had a bad experience trying to fade JSW Steel at Q1 results )