How to select stocks for swing trading - a primer
A thread 🧵 👇
Important : stock selection is very closely related to trader personality. I am sharing my process. At no point do I claim that
this is the best way. I am still learning how to trade.
A thread 🧵 👇
Important : stock selection is very closely related to trader personality. I am sharing my process. At no point do I claim that
this is the best way. I am still learning how to trade.
1️⃣ I am a momentum trader. I try to get into stocks which will give me 10- 40% return in 3 - 5 days.
The first thing I do after updating my db with #bhavcopy, is run a quick review and look at days winners. I use #amibroker and this is how it looks like
The first thing I do after updating my db with #bhavcopy, is run a quick review and look at days winners. I use #amibroker and this is how it looks like
2️⃣ top of the list is #JAGSNPHARM which I had tweeted at 174.
I study each of these stocks. usually this list will double or triple this size. I do this everyday without fail.
Trading is profession which needs highest skills. Skill is developed through practice.
I study each of these stocks. usually this list will double or triple this size. I do this everyday without fail.
Trading is profession which needs highest skills. Skill is developed through practice.
3️⃣ Universe of stocks - Clearly define your universe of stocks.
For me it is low float, liquid stocks and price above 30.
I pull in float data from screener.in to amibroker using a webhook
that I developed. so free float < 6000cr and C>30 and liquidity are my univ.
For me it is low float, liquid stocks and price above 30.
I pull in float data from screener.in to amibroker using a webhook
that I developed. so free float < 6000cr and C>30 and liquidity are my univ.
4️⃣ One can use two scans to shortlist stocks for swing trading
1. Mark Minervini trend template
2. Candlestick pattern recognition
I started with these, highly recommend.
What are these and how to get them?
1. Mark Minervini trend template
2. Candlestick pattern recognition
I started with these, highly recommend.
What are these and how to get them?
5️⃣ Trend Template
1. The current stock price is above both the 150-day and the 200-day moving average
2.The 150d moving average is above the 200d moving average.
3. The 200-day moving average line is trending up for at least 1 month (preferably4-5 months minimum in most cases)
1. The current stock price is above both the 150-day and the 200-day moving average
2.The 150d moving average is above the 200d moving average.
3. The 200-day moving average line is trending up for at least 1 month (preferably4-5 months minimum in most cases)
4. The 50-day moving average is above both the 150-day and 200-day
5.The current stock price is trading above the 50-day moving average
6. The stock is up a minimum of 30% from its 52 week low.
Best case will up minimum of 100%
7. The stock is within 25% of its 52 week high.
5.The current stock price is trading above the 50-day moving average
6. The stock is up a minimum of 30% from its 52 week low.
Best case will up minimum of 100%
7. The stock is within 25% of its 52 week high.
8.Relative strength of the stock is at least 75 or above
RS is an inbuilt function in #amibroker.
RS is an inbuilt function in #amibroker.
Usually there will be 200-300 stocks in this scan.
From here I use candlesticks to trim this shortlist further
to max 8 stocks.
to max 8 stocks.
to be continued....
Closing the thread as trollers have arrived in jhund. I cannot keep blocking so many people. Ain't got time ain't got so much patience
Peace out! I made this post as many people asked me to. I was hesitating because of this exact reason.
Btw #watchlist for tomorrow #wipro
Peace out! I made this post as many people asked me to. I was hesitating because of this exact reason.
Btw #watchlist for tomorrow #wipro
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