How To Pick Profitable Trades in This Market

Apurva Sheth

What a superb day it was!

Sunday, 22 January 2017, is one of the more memorable days for me at Profit Hunter. I conducted my first ever workshop for readers and subscribers.

Asad Dossani was there too, and we conducted our sessions at the iconic Taj Mahal Hotel, but that's not what made it so special. It was the opportunity to interact with you, dear reader, face-to-face that made it so memorable.

Nothing inspires us more than candid feedback and encouragement direct from you. It is here that we get new ideas and ways to serve you better.

Asad did a half-day workshop last year and got a great response from the participants. They suggested to have more and in depth workshops every year.

That's why we decided to have a full-day workshop this year.

DPH Workshop 2017

Over the years, many of our readers have told us they want to learn how we pick trades. They want to know the process behind picking the trades. And how can they learn the art of trading.

This was the focus of my presentation at the workshop.

My objective was to teach ways to observe the market, identify trading opportunities, and aim for profitable trades.

In the first half of my presentation, I took all the participants in to my trading room... Not in a literal sense, of course. Rather, I showed them all the charts I look at before I build my view on markets, sectors, and stocks. I spoke about the three M's of successful trading and how I have built the Swing Trader process around them.

Of the three M's, we focused mostly on method at the workshop. I first explained the method I follow and then shared a simple yet effective method the participants can follow themselves to pick their own trades.

It all begins with three simple steps, I told them. These are the building blocks of developing any trading system. And I'll share them with you today.

Three Steps To Build Your Own Trading System

  1. Identify Market Environment

    Developing a good trading system depends on how well can you define the current market environment. At any given time, markets can either be rising, falling, or trading in a sideways range. One has to define the current market environment and what the market could do in the future. Traders can use various tools - e.g. trendlines, moving averages, and ADX - to identify the market environment.

  2. Design and Apply Trading Systems Suitable for Specific Environment

    Once you have built your view on what the market could do in the future, you'll then design and apply trading systems suitable for that kind of environment. For example, you could use moving average crossovers to trade stocks if you think that the market is likely to be in a trending mode. On the other hand, if you think markets are likely to remain sideways, you can use supports and resistances to buy and sell stocks.

  3. Execute Trades with Discipline

    Finally, when the system signals a trade, you have to follow it without fail. More importantly, when there isn't a trade signal, you have to sit patiently. Remember: Not having a view is also a view. If the system does not signal a trade, don't hesitate sitting on cash.

Now this is just a broad framework. I will dig deeper into this in coming articles. All I want you to do now is to start thinking on these lines so that you can come up with your own trading system and pick profitable trades.

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4 Responses to "How To Pick Profitable Trades in This Market"
Prakash Rao
01 Mar, 2017
The article is good. Please share the free book about trading. Regards Prakash RaoLike 
u r rao
21 Feb, 2017
please send the free book on the 4 steps of the strategy as informed in your newsletterLike 
hanif rangwala
14 Feb, 2017
PLEASE SENT THE FREE BOOK AS PER UR COMMITMENTLike 
Sambandam A
29 Jan, 2017
Very good article and one must read. Like (1)
We request your view! Post a comment on "How To Pick Profitable Trades in This Market". Click here!