Stock market strategy for selecting high potential stocks

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Stock market strategy for selecting high potential stocks

Postby User » Tue Jul 07, 2009 5:22 pm

Forum transfer: Submitted by Arsalan on September 27, 2008 - 23:52

The strategy i am submitting now is actually used in stock market for selecting high potential stocks. For example I have stock a b c and d and i want to select any one of them then how would i select the stock with highest potential?I am submitting this strategy on an assumption that similar problem is faced in the forex market.There is a method by which we can select the stock or currency in which smart money is flowing.
The overall aim of this strategy is to trade in the currency which have the highest profit giving potential.

Smart money detector:
INDICATOR - ROC( RATE OF CHANGE)

Suppose you have currency A B C & D and you want to select any one of them to trade then you may get confused but to tackle this problem there is a method through which you can select the currency which have the highest profit potential.This method will help you to trade in the currency in which the smart money is flowing. The strategy is as follows:

For selecting currency for long trades - IF you have currency A B C D and you want to select any one of them for a long trade then plot the indicator ROC (RATE OF CHANGE) for all of them and select the one which have the highest positive and sometimes which have the lowest negative reading (this will happen when you will try to go long after a downtrend is over).
Eg.If you plot ROC for currency A B C and D and the ROC reading is like this
A +12
B +18
C +19
D +10
So in the above mentioned example i will definitely select currency c for trading because it has the highest positive ROC reading i.e. +19 .

For selecting currency for short trades - If you have currency
A B C and D and you want to select any one of them for short trade then plot ROC(RATE OF CHANGE)for all of them and select the one which have the highest negative reading and sometimes which have the lowest positive reading(this will happen when you will try to go short after an uptrend is a over )
Eg.If you plot ROC for currency A B C and D AND the ROC reading is like this
A -10
B -13
C -7
D +2
So in the above mentioned i will definitely select currency B for my trading because it has highest negative reading i.e.-13

In the above two examples i have only depicted selection of one currency from four but it is not limited till one currency selection from four currencies you can even select 3 currencies out of 8 or 5 currencies out of 10.
I hope this currency selection method will help every one in their trading

Happy trading,

Regards,

Arsalan.


Mr.Edward i am submitting this strategy on an assumption that this may be of any help to the visitors of your website but since i do not have much idea about forex market i really don't know whether if this strategy will really help or not.This strategy works very well in the stock market and this the only reason why i am submitting it here.
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