developing a point of view (POV) is even more compelling and primary. (View Highlight)
A point of view is the art of developing a sense of direction on a stock or the index. If you think the stock is going up, your POV is bullish; hence you would be a buyer of the stock. Likewise, if you think a stock is going down, your POV is bearish; you would be a stock seller (View Highlight)
So what you choose to do after developing a POV is a different ball game. Choosing the right instrument to trade that complements your POV is critical to profitable trading. (View Highlight)
For example, if I’m extremely bullish on the stock from a 1-year perspective, I’m better off making a delivery trade. However, if I’m out rightly bullish on the stock from a short-term perspective (say one week), I’d rather choose a futures instrument to trade.
If I’m bullish with constraints attached (for example – I’m expecting the markets to bounce because of a great budget announcement, but I don’t want to risk much), it would be prudent to choose an option instrument. (View Highlight)
