InvestorQ : Are there any qualitative factors to consider for intraday stock selection? Does it really matter for intraday trading?
sara Kunju made post

Are there any qualitative factors to consider for intraday stock selection? Does it really matter for intraday trading?

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Mahil Khan answered.
3 years ago
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Stock selection for intraday must not be based only on quantitative factors but also on qualitative factors. That surely sounds surprising but it is true. Let us look at 3 such qualitative factors you must consider.
Select companies that have stable management have a history of keeping their promises. You can call it predictable, reliable or good corporate governance. Such stocks are more predictable. When you trade intraday based on momentum, the last thing you require is sudden surprises arising from issues pertaining to management quality. Focus on the quality of management when you select stocks for intraday. It becomes a safer play.
Focus on corporate governance as a separate item of reference. This is something slightly different from management quality and refers to the standards of corporate governance followed by the company. Companies that are more transparent and work in the interest of stakeholders are more reliable and predictable. Companies with good corporate governance standards are more transparent. They also disclose more to shareholders.
Companies with strong brands are naturally suited to intraday trading. The brand creates the beta for the stock and it ensures that trends sustain for a longer period of time. Look at the likes of Hindustan Unilever, Britannia, and Nestle etc. We have seen that in strong brands in the consumer segment giving you ample opportunities to identify and capitalize on intraday trading opportunities.
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