Intraday trading—or day trading—is the practice of buying and selling stocks within the same trading day. Unlike long-term investing, where one holds positions for weeks or years, intraday traders close their positions by the end of the day to avoid overnight risks. One of the most critical elements of success in intraday trading is choosing the right stocks. This chapter focuses on how beginner and intermediate traders on the Pakistan Stock Exchange (PSX) can effectively choose stocks for intraday trading to maximize their potential gains while managing risks.

Wondering how to pick a stock for intraday trading in Pakistan? It all starts with the right strategy—and the right platform. Open your trading account with Azee Securities today to access real-time market data, intelligent screeners, and expert insights to power your intraday trades.

Why Stock Selection Matters in Intraday Trading

Unlike positional trading, intraday trading profits rely on small price movements that happen within hours—or even minutes. The volatility, volume, and price patterns of a stock determine how tradable it is for short timeframes. Choosing the wrong stocks can mean missing out on price movements or getting stuck in illiquid counters.

Hence, understanding how to screen and shortlist the right intraday stocks is crucial for any PSX trader working with Azee Securities or independently.

Key Characteristics of Ideal Intraday Stocks

• Liquidity (High Volume Stocks): Liquidity refers to how easily a stock can be bought or sold without causing a significant change in its price. High liquidity ensures that you can enter and exit positions quickly. Example from PSX: ENGRO, OGDC, UBL, and TRG typically have high daily volumes.
• Volatility (Price Movement): A stock that doesn’t move much in a day won’t offer profit potential. Look for stocks that exhibit reasonable daily volatility. Example: TRG Pakistan Limited often moves 2–5% in a single day—ideal for experienced intraday traders.
• Correlation with Sector/Index Trends: Stocks aligned with sector trends or the KSE-100 index tend to behave predictably. Example: When the banking index rises, stocks like MCB or HBL often follow suit.

Tools for Screening Intraday Stocks

• Top Gainers and Losers: These stocks show the most movement and volume daily on the PSX dashboard or Azee terminal.
• Volume Shockers: Sudden volume spikes often signal upcoming momentum—track them with Azee’s screeners.
• Intraday Charts: Use charting platforms like AZEE Stock Analytics to find breakouts and intraday setups.

Strategies for Stock Selection

• Gap Up/Gap Down Strategy: Stocks that open significantly higher or lower than their previous close are often reacting to fresh news or sentiment.
• News-Based Trading: Monitor earnings releases, economic indicators, and announcements. Tip: Azee Securities’ daily research reports can help you stay informed.
• Breakout Stocks: When a stock breaks a key resistance or support level with volume, it often leads to fast price movement.

Practical Tips for Intraday Stock Selection in Pakistan

• Stick with PSX-100 stocks for better liquidity
• Avoid penny stocks due to manipulation risks
• Watch market sentiment via the KSE-100 index
• Always use stop-loss orders

Which stock is best for intraday? There’s no universal answer—but stocks with strong volume, volatility, and correlation to index trends (like TRG, HBL, or ENGRO) often top the list on active days.

Diversify Your Intraday Watch List

Build a daily shortlist with stocks from different sectors:

• Oil & Gas
• Banks
• Tech
• Cement/Construction

This hedges against sector-specific moves and widens opportunity.

Common Mistakes to Avoid

• Chasing hype: Confirm technical signals before trading news-based moves
• Overtrading: Limit yourself to a few focused trades
• Ignoring risk: High-volatility stocks can backfire if not managed with stop-losses

If you're still unsure how to pick which stock to day trade, start small and leverage Azee’s market tools, which help you analyze, shortlist, and execute effectively—all under one platform.

Quick Recap:

• Liquidity is key – Focus on stocks with high daily trading volumes for easy entry and exit.
• Volatility matters – Choose stocks that show reasonable price movement within the day.
• Correlation with sector or market index – Prefer stocks that follow broader trends for predictability.
• Use tools like top gainers/losers, volume shockers, and intraday charts to spot trading opportunities.
• Apply strategies like gap-up/gap-down, news-based trading, and breakout trading for effective selection.
• Avoid penny stocks and low-volume counters that may trap your capital or lead to poor execution.
• Build a diversified watch list from multiple sectors like banking, tech, oil & gas, and construction.
• Discipline is crucial – Select 2–3 high-quality stocks per day rather than chasing every moving ticker.

With the right approach, tools, and focus on liquidity and volatility, intraday stock selection can become a calculated and rewarding part of your trading routine on the Pakistan Stock Exchange.

Get Started with Azee Securities

Ready to start your investment journey with Azee Securities? Open a Stock Trading Account and gain access to the Pakistan Stock Exchange (PSX). Let Azee Securities help you make informed decisions. Our expert advisors, advanced trading platform, and real-time market data ensure you stay ahead of the curve.

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