Analazying the Indian stock market for intra-day

in #stock8 years ago (edited)

I have used this strategy for few months and it seems to have at least 70-80% strike rate. As we know markets these days are extremely sensitive, no matter how fast you think of a reason to buy/sell a stock, you would be too late. So how does an individual investor make money risk-free? Use these tips (make sure your stock matches these qualities) :

  1. Should be a profit making company (Consistent profit in minimum 1 year)
  2. Should have excellent book value.
  3. Should be trading at low volumes. Considering all other active stocks , this stock should have low volume, not extremely low(around 200,000 by end of day)
  4. This is the most important point to be noted, THERE SHOULD BE NO NEWS regarding this stock anywhere. By saying this, I mean there should be no activeness, because once there's momentum, you're too late to put money in.
  5. Stock should be at 5 day low.

If these qualities are matched, there is a high chance next day the stock's price will increase, 2-5%. If there are no external factors like bad market,political news affecting the market etc.
Consider this for intra day or for 2-3 days holding period. Not more than that.