Mr. Vivek Bajaj will discuss the swing trading strategy applicable to all swing traders in the stock market in this 26th session of Learn2Trade. This video is for all traders having trouble picking out the best stocks from the more than 4000 available on the market. Choosing stocks with solid momentum is one of the characteristics of a successful trader. However, selecting stocks can be a very time-consuming process. He will describe how to filter stocks with high momentum to make this simple. The ideal technical analysis trading strategy with a favourable risk-reward ratio and a stop loss is then covered.

Watch this video to learn how to filter stocks and trade effectively.

What You Will Learn

This session's main focus is on introducing and explaining the "52-Week Strategy," which he relates to the analogy of eagles. He emphasizes the strength and possible significance of these companies by drawing comparisons between the strong birds that soar above others and certain stocks hitting their 52-week highs. The zone within 15% of a company's 52-week high indicates that positive forces, often led by market operators, are in control of the stock, making it a crucial criterion for stock selection.

Using StockEdge, an analytics and research tool for the stock market, he walks Annapurna through the practical application of the 52-week strategy. He helps Annapurna find potential trading opportunities by showing how to apply, such as 52-week breakout scans and near-crossing 52-week highs. Throughout the procedure, he stresses how crucial it is to do an in-depth analysis of the stocks by taking into account a number of factors, such as volume, delivery, super trend, and the relative strength index (RSI).

One of the most important things he teaches is to dispel the myth that costly equities are more likely to experience declines. He explains how the stock market is dynamic and makes the case that expensive stocks have the potential to increase in value. Annapurna's focus should be on companies that enter the 52-week high zone, he says, stressing that transactions should not be made until favourable price levels and breakouts have been confirmed. This patience and strategic approach are consistent with the overall trading philosophy.

As the session continued, he introduced the audience to a range of combinations, broadening the discussion to include 2-year and 5-year breakouts. With a wider viewpoint offered by these longer-term momentum techniques, traders may take advantage of sustained market movements. He asks Annapurna to experiment with these combinations based on her risk tolerance and time commitment, allowing her to adjust strategies to individual preferences.

He walks through the process of creating a watchlist using the concepts that are being taught during the session. He highlights that traders could adjust their method to fit their specific trading goals by refining their scans according to market capitalization and sector preferences. This attention to detail highlights his dedication to providing students with insights that are applicable to their own situations.

In a quick digression, he discusses "Eagle" stocks, displaying a ready-made approach available in StockEdge. He does, however, suggest that Annapurna concentrate first on the 52-week high strategy in conjunction with delivery and swing analysis, so underlining the idea that mastery requires a methodical approach.

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Frequently Asked Questions (FAQs)

Q1. What is the 52-week Stock Trading Strategy?

During the Learn2Trade session, Mr. Vivek Bajaj talked about a stock trading strategy called the 52-week Strategy. It involves finding equities that are within 15% of their 52-week highs, indicating favourable market dynamics. The goal of the technique is to use these stocks' strengths to help with effective trading.

Q2. What does the 15% zone within a stock's 52-week high mean?

The 15% zone within a company's 52-week high is considered notable since it signifies that positive market forces are in charge of the stock, which is generally driven by market operators. Trading professionals who use the 52-week Strategy to choose stocks must understand this zone.

Q3. What are the advantages of longer-term momentum methods such as two-year and five-year breakouts?

Longer-term momentum strategies, such as 2-year and 5-year breakouts, provide traders with a wider outlook on how to profit from sustained market moves. Mr. Bajaj advises testing out these strategies according to each person's time commitment and risk tolerance.

Q4. How is the 52-week Strategy for stock trading implemented using StockEdge?

StockEdge, an analytics and research tool, can be used to put the 52-week Strategy into action. Mr. Bajaj shows how to use its characteristics, such as 52-week breakout scans and 52-week highs that are almost about to cross, using practical situations to find trading opportunities.

Technical Analysis for Everyone