Those who trade in one session (day trading) need to choose the right stocks. Even a small mistake can cause great damage in a matter of hours. The same goes for stocks.

Ever wondered what might be the best advice for a day trader to choose the right stock? You can answer this in one word - liquidity. The advantage of liquid stocks is that you can buy them in large numbers and sell them without any significant effect on the price.

It has also been observed that stocks with less liquidity do not give traders a chance to buy or sell in large quantities as there are no large buyers. According to some analysts, illiquid stocks have more opportunities as prices fluctuate rapidly.

Choose stocks that have the best correlation with key sectors and indices. This is one of the best tips for intra-day traders. Stocks with good correlation with key sectors and indices are suitable. E.g. Movements in the growth of an index or sector increase the price of stocks.

Qualitative research is important for choosing the right stocks. Getting complete information about the stock you are going to trade in can be nothing more promising. Unfortunately, most traders neglect to do enough research before choosing a stock.