Stock Selection Is Everything!

High quality stock selection results in a high win rate.

The most important aspect of trading is,

“Stock selection”
“Stock selection”
“Stock selection”

It is the single most important thing because anything you do after that is just tactiques and not at all as important as you think.

Think about this if you get into right stock and it immediately starts moving into your favour and once, you're making money does it really matter what was your SL % is it 2% or 3% or let’s say at what price you brought like 100 or 101 or your using candlesticks chart or bar charts or you have risked 0.25% or 0.5% of the account etc etc.

As Pradeep Bonde aka Easy guru says and I quote, if we had the option to choose a car between a Honda or Porsche for a race and considering you're up against an experienced driver what would you choose? We would choose Porsche right! So, what that does mean, even if we are not that good of a driver because we choose the best tool for our job even and even if we suck at most things we are bound to win. Similarly in trading even if you're bad at-risk management or let's say you enter late or have a big SL or something. Even with all these shortcomings, at the end of the day you can take money home which is what matters.

So, I always focus on stock selection and constantly think about how I can get better at it. And how good the stock selection is, that much higher win rate we can maintain, which is absolutely must have, personally for me.

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