Question

Please summarize on how to choose a trading strategy.

Answer 1

Consider the below mentioned points while selecting stock -

1) Determine the level of risk that you can bear. All stick will not give you profit. Before selecting an stock you should be clear regarding the maximum loss which you can bear on the said stock.

2) Select stocks based on sectors which are going to perform well or where there are growth opportunities and then analyze their financial results and ratios for appropriate stock selection.

3) You can also use technical charts to understand movement of particular stock and the overall market.

4) Finally, stick with your plan and invest in the stock.

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