Stock Selection

Stock Selection ( Part -1 )

One of the most important art of Stock Market. If You are good in stock selection then your profit probability will be always high.

Majority of stock traders are unable to find good stocks & suffer from the series of loss. You can say that Stock selection is back bone of your trading system. In our previous topic # Risk Management We have learnt about game of probability & Money management that is mandatory for every trader now We need to learn one more process for getting high accuracy which is ” Stock Selection”.

So wash your brain guys & remove all history of non performing stock selection process, here I am going to teach you Advance Stock Selection process for winning trades.

I want You to improvise your stock selection skills & be able to take opportunity from any kind of price structure. work on your skills, train your brain to find out opportunity from any stock’s chart. sharpen your skills to differentiate between opportunity & threat.

” MAARNE WALE SE BACHANE WALA BADA HOTA HAI”
” GALAT STOCK KO ACCEPT KARNE WALE SE AVOID KARNE WALA PROFITABLE TRADER HOTA HAI”

Here first we need to learn what things We should avoid during the stock selection. So be ready guys for our next powerful post related to stock elimination process during the stock selection.

First, you need to identify ‘swing levels’ where old resistance becomes new support or the other way around.

When a swing level is tested, traders can look for buy or sell signals generated by their trading system.

When a swing level is tested, traders can look for buy or sell signals generated by their trading system.

In our case we look for price action reversal patterns to enter us into a trade.

if you want to learn in-depth, I highly recommend you join my course that covers one of the most powerful trading systems in history. it is easy, simple and very profitable.

Join our powerful & effective master class.

Stock Selection ( Part A-1 )

Avoid flat price structure during stock selection.
Flat price structure is dangerous, whenever stock price shrinks into small area or small range ( Accumulation Phase ) that time we should avoid the stock for sometime until it breaks high or low of that particular range.

Remember Important points during Stock Selection-

1. Narrow Range Stock / Small Range Stock ( Immediate Support / Resistance )-
If You get stock with narrow range or If You get stock with immediate support or resistance then You need to avoid that kind of stock strictly.

eg: Follow below chart for clear understanding-

In this chart, You can see that price is in very small range & there is adjusted bullish harami pattern with immediate resistance. that means next working day price might be reject by immediate resistance line.

In this chart, You can clearly see that the next day price got a rejection from immediate resistance & dropped !!!!

That’s why we need to avoid this kind of stock during stock selection.

Stock Selection ( Part A-2 )

Remember Important points during Stock Selection-

After analyzing Immediate S/R one more thing that can affect the stock which is the weakness of the candlestick pattern, & simply We can’t afford it during the trading hours. let’s understand what is Weak Candlestick Pattern?

Weak Candlestick Pattern = Very poor body structure than wick, below example can give you more clarity.

In this example you can see weak candlestick pattern in the white box. here in 1st box, red candle is very small as compare to green & in 2nd box, green candle is weak or very small as compare to red candle.

Hope this write up can help you to understand about this topic.

Example- Potential Pattern Vs. Weak Pattern

Related Blog

Stock Selection

Risk Management

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