Criteria to Find Stocks

A lot of people select stocks which are going down continously or if they are near their 52 week low. It's because they think that if the stocks is going down, it might go up in the future or it might go near its All time High. But that's not true 95% of the time. So a simple criteria for finding stocks is not looking at 52 week low but look at 52 week high.

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Why 52 week high because it's shows that the stock is in demand. People are buying that stocks because they are seeing something in thar stocks. Whereas people are dumping the stocks which are near its 52 week low. I know one thing that being 52 week high doesn't mean you will get profit but I know that there is interest, their is strength and there is demand. So if the stocks are near to its 52 week high or going higher everyday than market is favoring it.

So our motto should be simple, we have to follow and became a copycat. We have to follow where the money is going, and we should not follow where the hope is dying. We have seen stocks continue to go down if it's going down and it continues to go up if it's going up. So if you are selecting a stocks, this should be the first criteria that the stocks should be near its All time high.

Now if you are doing ETF swing trading. It's totally different. You want the ETF to go down so that you can buy more because ETF will eventually go up. For example Nifty 50 is going down continously and I am buying NiftyBees ETF rather than buying the individual stocks because I might be wrong for individual stocks but I will not be wrong in case of ETF.