Equity

Now that you have learned basic stock selection method, it is time to go deeper into stock selection.

Stocks could be selected based on strategy you are going to apply.
For example:
- Pair Trading Strategy- we need correlated or cointegrated stocks.
Here we apply step-1 principle, then we further select stocks in that universe.
HDFCBank - ICICIBank, USDJPY-NK, USDCAD - CL, CL- USO(ETF), GC(gold) - SI(silver), USDCHF-GC, AAPL - FB

-P/E Strategy- where we select stock which has PE ratio below a certain value.

Note: Above steps/methods are used in most strategies that  means, there are certain strategy which directly bypass above mentioned steps. Example- strategy related to penny stocks. But we highly advise beginner traders to follow above steps.