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Selecting stocks.

Discussion in 'Introductions' started by nandinimukerjee, Dec 16, 2013.

  1. nandinimukerjee

    nandinimukerjee New Member

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    I am finding difficulty in selecting the right stocks as per Market conditions. The indicators like RSI, MACD, ROC etc are giving confusing information. So I need help in choosing the right stocks. I would like to know what would be the five most important criteria for selection any stock (within the range of Rs. 200/- to Rs. 500/-) for swing trading ( 3 days to 7 days).

    Any guidance would be highly appreciated.

    Thanks & regards

    Nandini
     
    nandinimukerjee, Dec 16, 2013
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  2. shabbir

    shabbir Administrator Staff Member

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    Nandini, you are using too many mathematical indicators and that will confuse you more than assist you.

    I prefer support and resistance methods and I think it works for most of us.
     
    shabbir, Dec 16, 2013
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  3. nandinimukerjee

    nandinimukerjee New Member

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    Thanks for the reply. I agree that Support & Resistance are important but how does one confirm the selections or find out the conditions like overbought or oversold?

    Thanks & rgds

    Nandini
     
    nandinimukerjee, Dec 16, 2013
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  4. shabbir

    shabbir Administrator Staff Member

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    Can you tell me why do we need the overbought and oversold?
     
    shabbir, Dec 16, 2013
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  5. nandinimukerjee

    nandinimukerjee New Member

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    If the price is in the overbought zone & near a resistance area then there is the greater probability of price reversing. Where as, if price is near the resistance area but not in the overbought zone then there is a greater probability that price may break out from the resistance & continue up. (The same logic applies to the oversold condition, only in the reverse )

    Thanks & rgds

    Nandini
     
    nandinimukerjee, Dec 16, 2013
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  6. shabbir

    shabbir Administrator Staff Member

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    Not the way I look at it. I see if the stock is in up trend and near the resistance then it can break out but if the trend is not up then it will be hard for the stock to break out and vice versa.

    Yes people look at futures data of overbought and oversold thing but then I don't think it makes much of a sense to me.
     
    shabbir, Dec 17, 2013
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  7. kajaria

    kajaria New Member

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    Hello Shabbir I would like to know which is a simple tracking tool for equities in live market candlestick or bar graph
     
    kajaria, Dec 17, 2013
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  8. shabbir

    shabbir Administrator Staff Member

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    Candlesticks and bar are all the same and there is not much difference as far as representation of data is concerned.
     
    shabbir, Dec 17, 2013
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