Is it better to stick with just 4 or 5 liquid and volatile stocks and the indexes in price action trading?

General
1

Hi all,

I have been day trading stocks with price action for the past one year. In realtime im finding it a bit difficult to track more than 5 stocks for setups as price action needs a feel for the flow of market. So should i decrease my watchlist count to keep up the sync with the market? If yes, apart from liquidity and volatality, what else should i consider in shortlisting the stocks to trade…

Thanks in advance… :))

2

Since its just 5 stocks that you are looking for, one can easily list the most liquid scrips. Nifty, BN, SBIN, DLF, Tata Steel. Cheers!

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3

Yes, if you are a retail trader like me it is good that you can stick on to 3-4 stocks. As you said, this will help you to be in better sync with the scrip. If you stick to the same list of 4-5 scrips over a period of time, you could get the feel of the price action as well as you could easily recognize critical S/R levels.

Answer to second part of your question depends on whether you trade based on fundamentals or technicals. You can also consider Volume as another input.

4

My suggestion would be to stick with Nifty Future initially, get acquainted with it, see how it behaves under different factors/market conditions. In the beginning just track one, either Index or Stock, your choice. Once you are comfortable with one scrip, then only graduate to 2nd Scrip/Index. And see how beautifully you will trade and make profits.

5

Thanks for the list… :slight_smile:

6

That is exactly what im thinking andrew, but i was a bit confused whether i can make money only by trading 4 or 5 stocks. i just needed a confirmation before taking that decision. Thanks for helping me with it… :slight_smile:

7

yes, if u follow 4-5 stocks, it would help you in fine tuning your skills and strategy

8

I have exactly done the same when i started. But in the middle of the journey i felt bad about missing some big moves in the stocks which are not in my watchlist. so with greed i increased that number and paid the price to market for that big mistake… :smiley:
So i decided to decrease the number once again now… :slight_smile:
Thanks alot for the comment sir…