"You are only as good as the stocks you trade"
- Mike Bellafiore in his book One good trade
Most of us are a compulsive Nifty trader, and there are good reasons for that. But still if just for for experiment sake if we try to identify the stocks (max 3 of them) which would be in play the next trading day and just for paper trading sake examine the result, I think that would be a great learning exercise for all of us.
What is a stock in play?
As Mike wrote in his book and I qoute
" What is a Stock In Play? This could be, in no particular order:
A stock with fresh news
A stock that is up or down more than 3 percent before the Open
A stock that does more than one million shares of volume
A stock that will move more than 3 points intraday
A stock that will have real order flow and develop important intraday
levels, which we can trade off of "
So from my understanding stock in play would be trending stocks for the day
We make most of our money when the market trends so if we are able to identify such stocks and able to take an entry I am sure our ledger would be green with highly favorable risk reward....
So idea is to identify such probable stocks before trading day starts and do an analysis based on PA at EOD.
- Mike Bellafiore in his book One good trade
Most of us are a compulsive Nifty trader, and there are good reasons for that. But still if just for for experiment sake if we try to identify the stocks (max 3 of them) which would be in play the next trading day and just for paper trading sake examine the result, I think that would be a great learning exercise for all of us.
What is a stock in play?
As Mike wrote in his book and I qoute
" What is a Stock In Play? This could be, in no particular order:
A stock with fresh news
A stock that is up or down more than 3 percent before the Open
A stock that does more than one million shares of volume
A stock that will move more than 3 points intraday
A stock that will have real order flow and develop important intraday
levels, which we can trade off of "
So from my understanding stock in play would be trending stocks for the day
We make most of our money when the market trends so if we are able to identify such stocks and able to take an entry I am sure our ledger would be green with highly favorable risk reward....
So idea is to identify such probable stocks before trading day starts and do an analysis based on PA at EOD.
