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

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… :))

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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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.

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.

Thanks for the list… :slight_smile:

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:

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

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…