The 3 filters: a. Strong trend. b. Support/resistance. c. Candle stick pattern confirmation.

How to select a trade?

The 3 filters:

     a. Strong trend.
     b. Support/resistance.
     c. Candle stick pattern confirmation.

Other factors:

  1. Top down approach- If the index is going up then find out the sectors that are pulling it up. Find out top 3 companies from that sector and look for opportunities.
  2. Bottom up approach- Have top 3 scripts from one sector. If the sector is going up, index is going up then look for opportunities in the favorite scripts.
  3. Risk Management- Decide how much is your risk capital i.e how much you are willing to loose in total. Then decide out of that what percentage you are willing to loose in 1 trade. Take position according to that.