I'll bet I can. Pay me. <ggg>
Every trader is different. I'll tell you some of what I do. First of all, I watch hundreds of stocks every day. I don't trade them, but over time, you get to know them.
I do most of my homework over the weekend. That's why it seems I'm on SI a lot. I'm actually working, and taking frequent breaks.
I spend a lot of time looking at the markets in general, I look at the chart of the COMP, the DOW, all that. I look at sector indices. I try to have an opinion on which way I think things will go long term and medium term.
Then, I look for stocks that appear like they will move in the same direction as the market. I like to trade with the market movement, not against it. (Remember, this is just me.) I want something that looks like it will move at least a point, two is better. You probably know that I am bearish right now, I think the market is in a top formation. So right now, I am paying more attention to weak stocks in weak sectors of the market. Of course, I can't predict which way things will go, so I always have some weak, and some strong. I always have something that I can look at no matter which way the market is going.
Conversely, I may not trade at all on Monday. I don't try and find something to trade. I let the trade come to me. Some days, I may do 25 trades, some days I may do 2. I never know.
I use several filters, one of the main ones, as you already know, is Welles Wilder's RSI. I also use short term trend lines, and I am right now studying Point and Figure charting. Not one day goes by where I do not read something about trading or the market. I read every single day.
On Monday morning, early, I will narrow my list of things to watch down to about 12, sometimes less. Sometimes I see only one or two. Then I go to work, and I watch the market, I watch to see what is moving, what is active. I like active stocks, I stay away from thin deals, BB deals, and IPOs. I do trade the Internuts, but very, very cautiously, and only because I can do it successfully. I would stay away from those if I were you until you really have some experience. They can really wipe your ass out.
So, basically it's
1. Market Direction
2. Stock
3. Stock Direction (long or short)
4. Entry strategy
5. Exit strategy.
6. Find a BB stock scam to bust.<ggg>
I have all this stuff planned before I execute a trade. I hate surprises.
Tuesday morning, all over again. I've not had really good luck on Fridays. I try and be very conservative on Fridays, I may not trade at all.
Here's some other stuff. #reply-6329480 |
