I have received numerous queries on how to choose stocks for next day
As you all know that I use super trend for trading intraday and it is based on small swings or pullbacks.
So first step to narrow down stocks for the next day is to check its beta in 3 minutes chart with index. Now beta is the movement of a stock with respect to index . I not only check its movement with respect to index but I also check how its wings with respect to the index. Our system is based on swings so for me, the beta is, how the stocks swings with respect to index. In this way I narrow down 20 stocks out of 125 stocks in my list. I never trade stocks less than rupees 80 and higher than rupees 15000.
Second step is to shortlist 6 stocks out of these 20 stocks. For this I start scrolling big Facebook groups and telegram groups. From 3:30 p.m. To 7:30 p.m.,I run a program that scans, the stocks about which, traders are talking a lot. Reason can be anything, direction can be anyway but I simply scan the stocks in which other traders or retailers are interested in. In my backtesting I have seen that such stocks definitely show some movement next day. So finally I make a list in which the most talked stock is at top and the least at bottom . Hence we get 6 stocks for next day, intraday trading using supertrend.
(I have written this post using speech to text software so there may be some grammatical errors)
-Ajeet Singh
