Scanning Stocks

Traderji and all senior members,
Ananlysing each and every top 50 traded stocks is time consuimg.Also hardly 5-6 stocks out of the 50 stocks that we analyse gives a trade setup.

So it is better to first scan the group of stocks and then manaully analyse and search for trade set ups.Now the question is what are the parameters on the basis of which we should scan stocks????

I have searched on internet a lot but till date havent found parameters criterias on the basis of which I can scan the group of stocks and shortlist them.

It will be a wonderful help if any member tells me how to shortlist the LIST of top 50 traded stocks.And thus scan good stocks that can give a good move!!

I was wondering about that as well? Were do we begin, should we only choose the top traded stocks for a day and then analyse them individually or should we only consider the top gainers in the day and analyse them individually?

Such scanning facilities are available in all the standard softwares like Meta Stock, AmiBroker etc.

However, the criteria for scanning is always user specific. Usually the TA will define the parameters on which he want to base his analysis. Then, He will write the formulae on the basis of these parameters and will scan the market data. He will further analyse only those cases which meet his criteria and will take the most profitable trades only.

Hope it helps.

Best Regards,
--Ashish

hi ashish.. pl reveal ur criteria for scanning and logic behind it ............. other seniors are also requested to do so....revealation of ur tials and tribulations is going to help all FRESHERS... I REQUEST ALL SENIORS....AMITBE,SAINT,PAGENOTFOUND,KARTHIK,UASHI SH.,CHHEDA...LIST IS ENDLESS AND SO IS UR EXPERIENCE....PL COME FORWARD AND SHARE UR KNOWELEDGE., AS U ALWAYS DO.....

If the intention is to invest for the medium/long term, and not focus on day trading, then...

New 52 week highs sometimes give very good leads of cos where 'something good is yet to be announced or be known'

Within such list, discard those where the upside appears limited e.g. where the price may have already gone up more than 8 or 10 times (high : low)

Also discard whose charts look manipulated ( e.g. circular trading ... not very common though, and not easy to spot) or which are v low profile

Then look for the fundamental story (better future earnings, massive new orders, recent improvement in business model, takeover target etc) ... needs lots of research usually, or access to insider info (not a crime)

The ideal final group belongs to B1 and B2 Group of BSE (in terms of potential % gains).

Finally,consult some good chartist to confirm bullish pattern in the chosen scrip(s)

I have followed this strategy, with hits outnumbering misses at least two is to one over many years. Some have been potential ten baggers ( Clutch Auto) where sadly I cashed out prematurely

Happy Investing
AGILENT

Thanks Agilent could you tell me where i can get the EOD to load into metastock everyday? Is this info available free or is it only a paid service like in the Metastock website?

Download bhavcopy from www.nseindia.com which is freely available.

Regards,

Is there any place where one can get the scoop on a day's F&O data - close, open, high, low, open interest, volume etc.? Thanks for your help.
superkap

Dear Bharat,

I am not a position trader. My trading is confined to day-trading. As in day-trade, it's not possible to do a lot of analysis. I confine myself to three moving average crossover (5,8,13) coupled with ADX and Volume. Also, I confine my trading to a few securities. As I am not able to get hold of real-time data feed so far, I am using PIB and hence am not able to use signals generated by any software.

For EOD, I have seen that 3-13-39 crossover work fine and may be used. For our dear friends, who are not well-conversant with formula languages (I am one of them), they can refer to http://markets.moneycontrol.com/technicals which provides a list of stocks scanned on a number of pre-defined criteria. This information can then be used for further evaluation, analysis and trade.

For day-time trade, I have found Iris s/w from spider software is very good in generating a no. of good signals on a wide array of pre-defined as well as customizable criterias. However, I did not opt for their services as they charge for the whole year (Rs. 50K approx) on the very first day. Members who want to avail their services may visit http://www.spidersoftwareindia.com .

Hope this is helpful.
Best Regards,

P.S.:
I want to do an appeal to the members. I have seen that some of the members request for information or answers specifically from senior members.

Without undermining the ability and knowledge of the senior members, I would like to say that there are some of the junior members as well who are well experienced in the market and are junior members on this site only because they either have joined recently or have not much of the posts to their credit. Today even a newbie like me has become senior member while a lot of members who are much more knowledgable, experienced and successful in trading than me are still members or junior members.By asking only seniors to reply, we are excluding a vast majority to be a part of the posts which might not be good to the post or the site in the long run.

Hence, members are requested to ask for sharing or knowledge from "other members" instead of from "senior members".

Sorry I am not familiar with metastock, and use only ICICI DIrect where by the way I get enough info on 52 week highs