Stock Selection Criteria for Intraday Trading

Liquid shares are typically from well-known companies (top 100-200) where one can buy or sell large quantities (e.g., 10,000 shares) without issue. Small companies and penny stocks should be avoided for intraday trading.

Stocks selected for intraday trading should have 'volatility' (referred to as 'wallet'), meaning their price moves significantly up or down, enabling profit-making opportunities, rather than moving very slowly.

For intraday trading, focus on top 200 companies, avoid penny and small stocks, and trade in the direction of the prevailing trend (up or down) to minimize risk and potentially maximize gains.

Small-cap companies should be avoided for intraday trading. Market capitalization, which is the total value of a company's outstanding shares, defines large-cap, mid-cap, and small-cap classifications.

Large-cap companies have the highest market capitalization (billions of crores), mid-cap companies are below them, and small-cap companies have low market capitalization (e.g., 20-100 crores). Small-cap stocks are vulnerable to manipulation as a single large trade can significantly impact their price.

Large-cap companies are less affected by small trades due to their immense market capitalization, whereas small-cap companies can be easily manipulated by large players, making them risky for intraday trading.

When selecting stocks for intraday trading, avoid penny and small-cap companies. Focus on large-cap and mid-cap stocks. The speaker plans to provide a list of 100 good companies to watch in the next video.

For intraday trading, stocks must be highly liquid, meaning there is consistent demand and supply, facilitating easy buying and selling without significant price impact, unlike small or 'rubbish' companies.