Introduction :-
Today in this post we study about how to start stock selection and best method of stock selection for swim trading as well as profit margin more than 20%.
So first to first welcome to this article now keep learning and careful learning and enjoy every movement with learning.
What is swim trading :- Basically swim trading is a part of long term trading when you take trade for more than one day and less than 1 week this type of trading is known as swim trading.
How to Start Swim Trading :-
Swim trading is very simple to start if you have Demat account than you can easily do swim trading first add fund and then select stock and than start trading.
What is stock selection :- When se make strategy and than on the basis of that strategy you start selection of stock than this process is name as stock selection method.
How to select stock for profit :-
In trading every one want to make profit and here may be it is simple to making money process but the way of making money is too much hard as well as difficult.
So, if you want to making money and profit in trading than you must be make a strategy and you need to follow that strategy by discipline and also strategy is must be profitable.
Now I have also a strategy and I want to share with you this strategy is very powerful and profitable if you want to make money than you can follow this strategy.
The follow rules in our strategy :-
- Step 1 :- You have to find those stock which is near the Moving average 200.
- Step 2 :- Initially your time frame is must be 1D.
- Step 3 :- Check the high price of stock ( all time high ) and mark that point.
- Step 4 :- Change your time frame 1D to 12M and see candle strength must be green.
- Step 5 :- Measure current price of stock to all time high gap if gap is 20 to 50 % than it is very good.
- Step 6 :- See one time volume in the stock and see any pattern if form or not.
- Step 7 :- Your mind set must be Buy at bottom and Sell at top.
If you follow these step any stock than you can buy on the basis of these steps and also support and resistance always see it help to buy and sell also in profit making.
This image is the live example of this strategy :-
About this image :- In this image you can see than I already defined our entry , stop loss and target levels but before any type of entry I already told you first you read properly our steps.
How many expectation of profit in percentage :-
The minimum to minimum expectation is more than 15 % if you capital is low if you now expect more than 15 to 30 % than you have faces lots of issue like taxes less profit change.
So, if you have low capital than you must try to achieve 20% out of your caption than you can easily make money and also you are profitable trader after taxes.
Using this strategy can we make more than 20% profit out of our capital :-
Yes, you can easily make 20% profit out of your capital even some cases you can make more than 20% like in this image our hit target is more than 40% you can see in image.
But, the main condition is you need to follow properly our whole steps as well as you need lots of discipline and patience.
On which type of stock is best for this strategy :-
In Indian Stock Market there is following three types of stocks in market.
- Large Cap
- Mid Cap
- Small Cap
But if you want to make more money in short time and you are able to take risk than you can go with Mid Cap and Small Cap.
And you don’t want to make more money and you also don’t want to take more risk and you also give less reward so for this you can go with Large cap.
My advice for this :- You select only one index that name is Nifty 500 and you open the stock list of the Nifty 500 and you get only 500 stocks name you add whole stocks in your watchlist and trade with this stocks.
Conclusion of this article :-
In this article we discuss about how to select about for swim trading and how to make profit and also which strategy is best for swim trade and its step to apply.
So, my dear friends I hope this article is helpful for you so thank you for this reading this article and you can also share this article in your friends group.
