Making a trading plan consists of:
A) What to trade
B) When to trade
C) When to exit
D) How much to buy
Stock Selection :
Historical data:
- liquidity, volume, delivery, mcap, avwap
- Future OI data or other technical data
- Fundamental
Live data: used to reject pre-selected stocks if some live data does not support our previous game play.
- Gapup/down data
- opening 15min behaviour
Stock Entry : We could classify stock entry broadly into three part
- Breakout entry
- Continuation entry
- Reversal entry
Stock Exit:
- Trading strategy exit
- Fundamental changes
- Better opportunity
How much to buy? (risk management):
- Overall risk capacity
- Single trade risk criteria
- Win % of strategy
- R:R ratio of that strategy