Should I buy stock when there is buy signal in INDICES and buy signal in stock both ? Or Should I buy stock when there is a buy signal in stock irrespective of market outlook ?
u buy a stock when you think it's cheap. a stock can be cheap irrespective to market outlook at a certain point of time. most stocks are correlated anyway. a stock can also be cheap when indices is cheap, or maybe not. it can be subjected to other factors.
true. But if the indices falls heavily ...stock can not stand ...they'll fall...... cheap is not defined in the market.
Buy when your system gives you a signal. If the trade goes against you, your system should have an exit plan that keeps your loss to a minimum.
You should research on the market, where you are trading. You need to see the previous data, before buying & selling the market price. when you think, it is cheap rate, you need to buy during that time, beside this, when you see that it is the good rate, then you can sell them.
first check whether your stock moves along with index. If yes, the odds should be better when you have bullish signal on an index and your stock.