Practical Stock Trading

Hao Sun runs through his Method for stock selection which he calls the Top-Down approach. Hao doesn't limit himself to only trading stocks from his country of residence, instead he takes a look around all of the major stock markets around the world to find his trades. With so many different stocks and markets to trade his Top-Down method for stock selection greatly narrows down the number of stocks he needs to scan to find trading opportunities. 

Let's take a look at the process he goes through to find a chart to trade. He starts out by confirming the overall market direction by looking at the US stock market as it's the world's biggest economy therefore it acts as a great barometer sentiment. Secondly Hao will identify either the strongest or weakest local market and then select the strongest or weakest stocks from those local markets for further analysis. The final step is to then find and time an entry into the stocks he has ended up with by combining multiple technical factors  to give him a high probability trading setup.

Read Hao's full article on Practical Stock Trading here. 

Happy Trading!

Regards,
The TWP Team