Page 214 - ART Study Manual

® “Home-Study Course” Study Manual Page 214

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Using Stock Sectors & Groups

To Better Your Odds

This is for equity traders and stock option traders. There are two
approaches you can use to decide what stocks to trade. One is called a
“Top Down” approach and the other is called a “Down Up” approach.
Here are the differences:

1. Top Down Approach:

a. Sector
b. Group
c. Individual

In using this approach, you start the analysis at the “Sector” level
and work your way downward to “Individual” stocks. Traders
using this approach first look at the stock “Sector” charts. Then
they analyze the “Groups”, and then pick the best “Individual”
stocks to trade. Thus, named a “Top Down Approach.”

You can use this approach by looking for “Sectors” that have
been sleepy for awhile. Then look at the most sleepy stock
“Groups” within that sector. Then, choose the best or longest

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