1) How do you create your watchlist?
My watchlist is created from many different news sources before and after the bell, certain stocks that meet my pattern criteria (dumpers, gainers), stocks that are keyed off by my momentum/volume indicators, scanning software and stocks that are brought to my attention by the traders in my room. This is just a few of the sources I tap into to create my watch list. How do you create your watch list? :-)
2) What do watch during the day?
I watch CNBC, scanning software, and news services to name a few.
3) What broker/software do you use?
I currently use AB Watley. They are cheap, quick and easy to use. I am now testing a new system for the traders in my room from MB Trading. Will post results when I finish.
4) Do you hold positions overnight?
I do hold positions overnight but very infrequently and only when the end of day gap patterns are repeating, and the percentages warrant the risk. I only play 70% patterns myself. This eliminates much of the risk.
5) How many positions do you usually carry at one time?
I call many trades, but usually only enter one or two trades at a time.
6) What kind of risk management strategy do you use?
Risk management is the key to daytrading success. I set a very tight stop loss, normally 1/8 of a point. If a stock takes out my stop, I wait and re-buy and next bottom. That way, my normal risk exposure is 1/8 of a point only. I do miss some reversals that end up turning and running several points, but it is my "insurance policy" . I NEVER ride down trade "wishing" or "thinking" that it HAS to bounce sooner or later. I let the market and the real-time data dictate to me when to exit and enter my trades. Emotion has NO place in daytrading. None!
7) Do you use specific technical indicators to trigger your entry/exits?
There are many, but to name a few, I look for stocks that dump over 20% on medium bad news, then if the spread is good (1/8 of a point or less), I concentrate on guessing the bottom. The first indicator of the first bottom on my trade is a PAUSE in the rhythm of the downticking bid and ask. More on that later..
Ken
mtrader.com |
