- The working person’s trading method detailed. Part 1 Why You Should Trade.
- The working person’s trading method detailed. Part 2 Resources.
- The working person’s trading method detailed. Part 3 My Trading History and Introduction.
- The working person’s trading method detailed. Part 4 An Overview of my Process.
- The working person’s trading method detailed. Part 5 The characteristics of a stock that makes my watch list.
- The working person’s trading method detailed. Part 6 Money Management: Finding Buy Points, Setting Stops and Targets, Position Sizing
- The working person’s trading method detailed. Part 7 The Weekday Routine and Scans.
- The working person’s trading method detailed. Part 8 The Weekend Routine and Scans
In this post I will give another overview of my trading methodology. I already did this in the first post, but I get into some more detail here. As a result some of this is a repeat. I apologize for this, but it does help to reinforce the previous information.
Every day I run the Stockbee Episodic Pivots scan. I run this in FINVIZ and Telechart. I go through and write down any stocks that I think warrant further research. On very rare occasions I will put a stock directly on my watch list. On even more rare occasions I will consider buying the stock ASAP. This is ultra rare. I compile the stocks that were written down into a list that I then go through again during the weekend. Here I will pare this list down and only add the very best to my watch list.
Also, on a daily basis, I will monitor my current holdings. I do not enter my stops into my broker, rather I have a system for managing my stops manually. My profit targets are entered into my broker, so they trigger automatically. Though my system is fairly mechanical I do allow myself some discretion. If a stock is very near a profit area, but can’t seem to get there I will fudge a bit. The same with stops, though with stops it is a bit more complicated.
On the weekends I run several scans to look for stocks to add to my watch list. Every other week I go to the NextBigTrade Stage Analysis Screener to look for candidates. Also Bi-Weekly I run Trend Scan abs(c>avgc70)*125 in Telechart. This is a persistent trend scan to find stocks that are in very persistent trends. Every week I run the following scans:
- Landry Bowtie Crossover (C > AVGC10 AND C10 < AVGC10.10) AND (AVGC10.10 < XAVGC20.10 AND AVGC10 > XAVGC20) AND (XAVGC20.10 < XAVGC30.10 AND XAVGC20 > XAVGC30)
- Young Trends TI65
avgc7/avgc65>=1.05 and AVGC7.20 / AVGC65.20 <= 1.05 and minv3.1>=100000
avgc7/avgc65>=1.05 and minv3.1>=100000
- SwingTradeBot IPO Screener
Landry Bowties and Young Trends TI65 look for trend reversals, TI65 looks for strong trends. The IPO Screener website is the best resource I have found for scanning IPOs.
Every weekend I also go through a watch list of markets indexes, as well as several market indicators. This is not a super important part of my trading but I do like to see how the markets are behaving. Though I don’t short much, I do try to run some short scans as well as some ETF scans as I maintain a short and ETF watch list. This is something I do if I have the time.
After adding new candidates to my watch list I will go through my watch list and flag the best set ups and copy them to a new watch list of the best set ups for the week. I will also remove any stocks that no longer are watch list material from my watch list as I go through it. I try to pare down to the best 20-25 stocks every week. From that list I attempt to flag the best 5 or so out of those. These are the ones I will most want to buy if they set up. I place alerts in Interactive Brokers for the 20-25 stocks on my Weekly Watch List. IB is set up to send me an email in Gmail which via Labels in Gmail will put a notification on my phone. This allows me to get alerts and take appropriate action while working.
The last thing I do is update my Google Doc of my stops/targets for my current holdings. I maintain this list in Google Docs as I do not want to have a hard stop with my broker. I will get into the why of that later.
If I have time I do occasionally like to go through and read through the Stockbee timeline, StockTwits, and my Twitter feed for anything of interest. This doesn’t always happen and rarely do I see anything of interest, but occasionally I do find something very interesting that I can use.
Working person’s trading method series:
Part 1: Why you should trade.
Part 2: Resources
Part 4: An overview of my process.
Part 7: The Weekday Routine and Scans
Part 8: The Weekend Routine and Scans
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