Knowing how to trade is only part of the battle. When tackling the equity markets, we also need to figure out what to trade. There are a lot of stocks available on the NSE and the BSE. Traders need a set of rules to filter out dangerous stocks and find the ones that will offer the highest probability for success.
In our Professional Trader Course, we set out a detailed set of guidelines for stocks that are acceptable for trading and those that should be avoided due to factors such as: low volume, extremely volatile price swings, non-correlation with the broad market, etc.
Once we narrow down the list of tradable stocks, we need to identify the ones that will offer us the best chance for success during our chosen trading timeframe. There are two ways of doing this, one is a top down approach and the other is bottom up.
One thing that both methods have in common is that we want to identify the trend of the broad market, which in our case… Continue Reading
