This is a quick post on making watchlists. This is one of the most important parts of trading. Each day, before you get ready to trade, you need to have 10-15 setups that are ready to roll. If you wake up and think you’re just going to hop in the chat room and make thousands of dollars, you will never succeed. Just like any sport or profession, you have to put in hours and hours of practice and preparation before the big game! So, I make two watchlists on Sunday. One list comprises potential plays for the week, and then a second watchlist of stocks that will be ready the next day. Each day, I prune through the weekly watchlist and take out the stocks that broke out or have moved in such a way that the setup is no longer valid. I transfer the ones that look ready to my daily watchlist, along with the stocks I found that night on my scans, and then I set my alerts. Bam! Now you have a game plan.
Education
$ZOLT Trade Review – Trading Red to Green Moves
One of my favorite triggers on a stock is the red to green move, also called “R/G.” We use this many times a week as a way to time our entries in particular stocks. Essentially, we use this trigger when a stock is weak in the morning and then rebounds and goes green, so it’s positive for …
Daily Trading Checklist
DAILY TRADING CHECKLIST
1. What is your bias today? bullish? bearish? rangebound?
2. What sectors are firing/what type of setups is working best? Flatop breakouts, bottom bouncers, flat base breakouts, Breakout/pullback to support plays etc
3. What is your edge today on exploiting market conditions
4. Do you have 7-8 hot hot setups split between daytrades,swingtrades, shorts
5. What else have you done to prepare for the day..what homework has been completed. (did you study the blogs, run your scans, finish your readings, update your trade journal etc)
6. Whats going on with the positions you have. Do you have updated stops on them updated targets etc
7. How do you feel? do you feel confident in your plan of attack or do you have a paralaysis of analysis? —————- (many new traders cant compute the dozens of variables and bits of information that is thrown at them. You hungover, in a happy place, going to the darkside, girlfriend/boyfriend making whoopee with the poolboy? All these things impact your trading.
8. Physically- are you rested, you been exercising?
9. How is my trading platfrom ? is everything in working order, did i setup my hot keys, alerts, charts.? is my charting program, scanners tools all ready to go.
$ARSD and $TSTC Trade Review – Trading Parabolic Shorts
Hey folks! I received a lot of questions about my $ARSD trade, so I decided to write a blog post breaking it down. The stock broke out at $4.60 on the chart and ran on high volume. I missed the break on the chart, but noticed that it was screaming higher for seven days in a row! The stochastics …
Read more$ARSD and $TSTC Trade Review – Trading Parabolic Shorts
STOCK SCANNING 101
Hey guys. Lot of you guys have asked me about scanning and how to look for stocks. Maribeth almost always finds excellent setups and she uses all free tools. One of the things I always tell the guys I coach is to keep their costs minimum. Ideally between 5-10% of your profits is what you spend on all your trading tools, softwares, computers, desks etc. There are some great scanners out there ( I use them) but they are not a necessity you can get the same stocks using free software. here is how she looks for her stocks. Also ive included a past blog about how i make watchlists:
How I Setup My Charts
I’ve received a few questions from some of the new guys about how I setup my charts. I like to keep a simple setup that shows me clear charts so that I can focus on price action solely. There are over 500 indicators that one can use; many of them will be quite useful and some won’t. But indicators are just derivatives of price, and they often lag price action, giving you delayed signals. For the Bulls style of trading, we never use indicators to tell us when to buy or sell. We use indicators to CONFIRM what we see from the price action.