Right Sectors can make you loads of money !! Lets find out š
You might make money trading every other company or sector but if you want to stand out and generate super performance then you have to be in right sectors. Additionally, right sectors improve your win rate as buying force is much stronger than any random sector.
What do i mean by strong "Sectors" ? It means that particular Industry group is having major catalysts which is going to accelerate the companies revenues and earnings. So, we know that Earnings are the driver of the stock price. This induces strong buying force. This is
How to know which sectors are strong? Step 1 - Technical Action Identify strong standing stocks through price action like 52 week high and then select the ones which are coming as a sector. This will give you strong sectors initial list which will lead to strongest
Step 2 - Select the leading sectors based on Price action. Check which sectors are already in Stage 2 and leading and separate them from the ones where there was nothing as on date. This will give you two list , Already leading sectors and other sectors.
Step 3 - Dig deep to identify the sector catalyst Use Google, AI tools & X like platforms to get a basic idea on what is going on in the sectors. You can also read their sector leaders Con call to understand the sector dynamics better. Same can be done to see whether
Step 4- Use Fundamentals to select companies from the strong sectors Now dig deep in the selected sectors to select the strongest names where valuations are pretty attractive and growth aspect is pretty attractive. You will have the final names from selected sectors.
Step 5- Execute as per the momentum in the sector Now the key is to wait and be more inclined towards the sector when the momentum picks up in those particular names. Use Technical and Fundamentals in Sync to generate Super performance.
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