One very important thing
i was talking about which stocks to trade an important question.
Answer is here , for this purpose we will make two category of stocks
1) stocks that we have to long
2) stocks we have to short
for this purpose we would chose stocks with high volumes, and
which are bullish in short and intermediate term .
1)STOCKS WHICH WE HAVE TO LONG
Firstly we are gonna see in which direction market( nifty , sensex) is going . For this purpose we would see daily charts of the index in long run , if u have charting softwares such as metastock , and have access to systems such as adaptive moving average , 2 day , 3 day breakout techniques , tectical geomatric system lt , etc its better , u could take long or short signal from that for intermediate or swing trades .
( if u don't have such system don't worry use 11 period ema and 55 period ema )
( 11ema tells short term trend and 55 ema tells intermediate term trend )
if nifty is above both in daily chart it means it is bullish in short and intermediate term )
now what we have to do is to select sectors such as banking , pherm, it, metal , automobiles , engineering, etc , which of the above or other sector is bullish iun short and intermediate term .
Suppose automobile is bullish in intermediate and short term , so now we are gonna look for which perticular stock is most bullish in that perticular secto suppose tatamotos and maruti is most bullish
so we are gonna trade in maruti and tatamotors in intraday in long side and use di+ and di- , or moving average crossover techniqe , remember one thing never use short signal in these scripts .if it comes avoid trading , take bu signal and set profit targets . At 0.50% and i can say with confirmation it would be a successful trade .
2) stocks which you have to short .
For this purpose use same technioque as mentioned above but in opposite direction , say u find most bearish sector at present is communication so now find which communication script is most bearish , suppose it is bharti and rcom so
we are gonna use di+and di- or other such techniques to enter into short side . We would ignore the long signal and use only short signal .
Final lession
so whenever market is rising we would buy most bullish scripts and whenever falling we would short most bearish script
the purpose for such arrangement is to increase the accuracy of system and make it a perfect and always profitable technique .
Any problems regarding this system free to ask but please avoid question related to data vendors, softwares , etc.
PROCESS MAY SEEM A BIT COMPLICATED AFTER ADDITION OF THIS CLAUSE IN THIS TECHNIQUES BUT REMEMBER EARNING IN MARKET IS NEVER SO EASY SO U HAVE TO GO THROUGH SOME SORT OF COMPLICATIONS IN ORDER TO BECOME ANY KIND OF SLUMDOG MILLIONARE
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