The 3 filters:
a. Strong trend.
c. Candle stick pattern confirmation.
- 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.
- 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.
- 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.