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A Trading Strategy Inspired From Cricket - Views on News from Equitymaster
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The Equitymaster Research Digest

A Trading Strategy Inspired From Cricket
Mar 17, 2017

  • SCOREFAST like Virat Kohli
  • This might be your last chance

Trading is considered as the most difficult profession. Here, you don't know who your opponent is. The person you buy or sell from could be a scientist, an algorithm, a seasoned investor, a mutual fund, a doctor, a lawyer, a complete novice...

This is a field where smartest of brains (and machines) fight for supremacy. No wonder most new traders wind up lost in this jungle and don't survive for more than a year or two.

But we are here to change that. Our job at Profit Hunter is to simplify the field and guide you become the best trader you can be. Recently I shared a piece with my readers at Profit Hunter where I draw an analogy between trading and cricket...

SCOREFAST like Virat Kohli

Trading isn't that difficult...if you think differently. It's a bit like cricket. Like cricket, trading is a game, and the teams are the bulls and the bears.


Think of a team about to bat. How do they decide who to play? What do they consider before picking the batsmen and bowlers?

First, the captain of the batting side studies the outfield - the grass, dew, wind, and weather. He even considers the time of the day the match is played.

Likewise, a trader must study the 'trading outfield' - the broader markets in terms of sentiment, flow of funds, and market breadth. This provides the trader with a big picture perspective of the markets and gives him an edge in planning and stock selection.

After studying the outfield, the captain moves to the pitch. Is it hard? Is it rough? Are there cracks? Based on these factors, he assesses whether the pitch will favour pace bowlers or spinners.

After studying the trading outfield, the trader then analyses sectoral leadership. Which sectors are leading the markets? Which are lagging? Are specific industries moving within these sectors? What categories of stocks are likely to benefit - defensives or high beta.

After studying the outfield and pitch, it's time for the captain to select the players. He bases his decision on individual performance as well as the team's requirement and finally decides the batting order of the playing eleven based on all these factors. His goal is to have a well-balanced team that can leverage the available conditions.

Now, imagine you are the captain of 'your trading team'. What kind of batsmen (stocks) would you like to have on your team?

I know you'd like to have batsmen (stocks) who can play defensive and continuously rotate the strike by hitting singles and doubles (small and regular returns). They will bring stability to your team.

But you can't win matches with them. To win matches, you also need batsmen (stocks) who can hit boundaries and sixes.

So you'd probably want an aggressive batsmen (stocks) like Virat Kohli. The Indian team is fortunate to have a batsman who can score fast when needed.

But what about your trading team? Do you have stocks that can score fast and big?

Don't worry...If you don't, I can help you find them.

Finding a star batsman like Kohli is difficult, but finding a stock that can score big and fast isn't...if you have the right process.

Fortunately, I have developed a process that can do it. I call it the SCOREFASTTM system. It is a combination of nine indicators that can identify stocks that have potential to score big.

The nine indicators help me analyse stocks from multiple perspectives. And only when a stock passes all the nine criteria do I recommend it to my subscribers.

This is Your Last Chance

I recently launched a service called Peak Profit Alert that recommends stocks based on the SCOREFASTTM system.

We have got an overwhelming response so far. But you know we can't keep the Founder Member Offer open forever. In fact, this offer will close tomorrow at midnight. So, this might be your last chance to sign-up for the service.

So if you are interested to join us then, click on this link right now!

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