Run One Scan Instead Of Having Multiple Watchlists For Sector & Industry

Having multiple watchlists for every sector or industry is unnecessary

First things first there is no standard classification of sector & industry, each platform does classification differently that means Tijori, Chartink, Stock edge, Trading view and many other platforms do it differently.

Even our exchange, the NSE, has very less classification like pharma, bank, IT etc but they do not have for railway or defence and many others, which is one of the limitations. And even with separate indexing not all stocks are considered for example if you take CNXIT the underlying stocks are only of large caps and sometimes from midcap never from small cap.

Now if you have multiple watchlists then you have to proactively manually manage them which is a mess that you do not want. Especially for new listings or in the case of delisting and because of the liquidity cycle in stocks, you sometimes miss or always see illiquid stocks when you are going through the whole list that you have created ages back.

Note:

• Even though each platform classifies differently, just follow what platform you use the most. For example, I use TradingView day in day out, so I only use their industry and sector scans even if they are not 100% right.

• Important point to keep in mind is that TradingView doesn’t show what you want to see in terms of industry and sector. For example, you know what railway stocks are, those are RVNL and TITAGARH etc, but on TV it's different as shown below in table.

  

The indicator I use to spot industry and sector of specific stock is Pro Volume by TradeINski

However, this is how I deal with industry and sector,

• I simply call them theme play whenever I see similar action in stocks that are from a similar sector or industry in which I am anticipating a breakout.

• Once I have identified the theme no matter what from that theme, I always know few names for example if I ask you what the few stocks in shipping as theme then you will immediately say MAZDOCK or GRSE or something, one or two names you will always know from all the themes if not all tickers from a specific theme.

• Once I know a few tickers from a specific theme and now I want to know all the tickers that are classified under a specific theme, for that identification for specific stock according to TradingView classification considering the example of MAZDOCK and GRSE take help of my Pro Volume indicator.

  

• Once you know industry and sector then based on the tickers you know select appropriate industry and sector in the drop-down menu as shown in the scan and then run it, then you will get the full list of stocks which you can go through them directly.

  

• This process I do whenever I need to dig deeper into one industry or sector which is way more efficient than having 20-25 watchlists. As most of the time we are not even looking for any kind of theme play.

One of the advantages of trading MB and doing live scanning is I don’t have to anticipate any kind of theme play because if at all there is theme play then in first 30 minutes of market open stocks from same theme show up in my bullish scan based on the I can easily spot, what is the theme play which I should actually focus on then anticipating anything.

Btw week in week out I trade stocks based on theme play which is way higher than if you're anticipating it and also with a very high success rate. Ask yourself what the usual gap between two themes you traded; it will be usually months sometimes it will be weeks.

Summary,

• Maintaining and managing so many watchlists is not the effective way to do it.

• No matter what there will be limitations regarding classification of industry and sector.

• Instead of industry and sector, think in terms of theme play.

• Occurrence and success ratio of anticipating theme play is way lower than doing it in the live market.

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