Vehicle selection and setup selection

Selecting right vehicle substantially increases your chance of success. If you select a vehicle capable of big move the probability in in your favor. Let us say you give a serious thought to your vehicle selection strategy and decide to focus on right kind of stocks, that in itself may not guarantee your success if you buy them too late or at wrong price or wrong time or in wrong amount.

After vehicle selection comes the next major decision : setup selection. Setup selection answers the critical question of entries, exits, stops, risk and trade management. Selecting right setup on right stock will help you make money.

Growth stocks and momentum stocks show certain types of setups during their move . If you select those setups as your primary setups then you further increase probability of success.

Unless you understand vehicle selection and setups selection  as key to profitable trading you are unlikely to make much money. Learn setups. Setups give you complete set of rules for every element of a trade for a particular timeframe or style of trading. A well thought out set up for swing trading will give you everything you need to do to trade that setup successfully. Once you understand it you will be able to trade it on your own without needing help.