Stock selection for Day Traders

One of the important decision day traders make is selection of stocks for the day. As the saying goes "we are only as good as the stocks we trade ".

1. I try to trade stocks in play ( SIP). Stocks which are having fresh news.
2. Business papers like Business Standard, Economic Times report stocks in news which are good candidates for day trading.
3. Most active securities for the previous day and the trading day.
4. Breaking news stocks on Business channels like  CNBC, ET NOW
5. Earnings season offers number of stocks for Intraday opportunities.
6. NSE website has a tool called  STOCK WATCH which gives comprehensive picture of many stocks and sector along with their 365 day and 30 Day movements which can help the trader on over performance and under performance of stocks.
7. Stock screeners on websites like ICharts.

Some problem trading patterns in Intraday Trading

Day Trading places more emphasis on the psychology aspect. The trader has to take fast decisions under stress which is relatively less in swing or positional trading. In the heat of trading,the trader is prone to errors.
some of the problem trading patterns I have observed and trying to control in my intraday trading are

1. Placing impulsive, frustrated trades after losing ones.
2. Failing to take good trades after a losing period by becoming risk averse
3. Taking more unplanned trades after becoming overconfident during a winning period
4. Increasing trading size to make up for prior losses
5. Trading for excitement rather than to make money

Market Overview 10/12/2012

As markets gain energy ( with huge volumes) I am trying to be active once again !

1. My approach more or less follows the detailed description given here.
2. Nice blog where the conceptual approach to trading decisions is provided.
3. I look to closely follow MCDOWELL and PANTALOON RETAIL for Monday.
4. Will there be a Lobogala in MCDOWELL ?