I'm new to trading. Been paper trading for just over 2 months with various "indicators/systems" trying to find what works for MY trading style. Not sure what my style is but I know what makes me feel comfortable and what doesn't.
My dilemma is figuring out what stocks to trade. Do I run scans everyday of stocks that fit my indicators for that day and continue to add them to my watchlist? I think that my list would continue to grow and become unmanageable. Ideally I'd like a list of about 50-75 stocks that I'd check everyday for my particular setups. I'd only end up trading from that list. Over time, I'd add and remove from that list but I'd have a core list of stocks to choose from. But where /how do I make that list? Do I start with a daily scan for my setups and that becomes my list? Do I randomly pick ones that I like from real life?
How do/did you guys come up with your master list? Any help or insight into this is greatly appreciated.
It will depend on what type of trading you are doing. As a swing trader looking for pullbacks and breakouts I scan for stocks in an uptrend. Develop a trading list that might have a couple hundred stocks then scan that list for set ups on a daily basis.
It is hard to find the Truth when you start your search with a preconceived notion of what the Truth will be.
Define that....What makes you comfortable? For most of us comfort comes from making a correct decision and making money in the process. This is not an investment style or investment plan.
My crystal ball is in the fritz. What are your criteria for conducting a scan? What are you looking for in a stock? What are "indicators" and how do you use them to select stocks? or do you simply warehouse the names that appear in the scan with no more selection.
Why limit yourself to 50-75 stocks when there are literally thousands to chose from? And if you would run daily scans after that to add what is the purpose of the other 50-75 stock list.
A watchlist to me anyway (it will vary in use and type with any investor) this is a personal view, is simply stocks that appear to be approaching a critical point in their history. My watchlist is very small as a result. It will consist of perhaps 10 stocks that interest me for whatever reason and will change with whatever goes on in the financial world.
A watchlist to me is a short term list to satisfy a need to find an opportunity for available cash on hand....once that need is filled and if my portfolio is performing as hoped I will dissolve that list until more cash becomes available either through a cash infusion into the account or sale of shares...then based on the amount of money I have and type of stock I want I will compose a scan or two to select a suite of possibilities and pare them down to a few to watch
Your problem as I see it is that you have not defined the type of trader you want to be...it would be helpful if you defined your "trading style"...I also think that you really do not understand indicators and how that can be used...I say this because of your phrase with various "indicators/systems"
One of the better websites to learning charting is Stockcharts.com. Their chart school is very good. I recommend it highly.
It has basically covered every single popular question and is almost certainly an eye opening experience for new traders. It should be extremely clear after reading that thread where most people go wrong, why, and then knowing this it can help you not make the same mistakes.
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Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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Favorite Futures: European Indices, Precious Metals, Energy
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might want to look at news feed, or volatility analysis, or try to look for big movers etc. So many criteria to choose from. Better to focus on the technique I'd say. Once your trading technique is developed you'll be able to trade it all.
I used to swing trade stocks, now I day trade stocks, and prefer trading them over futures. Trading the like of ES is one of the most difficult things you can do.
My advice would be to learn some basic price structure/ pattern style analysis. Forget indicators/ trading systems, you need to learn how to read a bar chart first. Stocks often make lots of distinctive patterns and show obvious areas of support/ resistance that every indicator will miss. There's no need to over complicate things when your just starting out, because the worm hole just keeps getting deeper.
IMO you're better off learning from some old timers who progressed from hand drawn charts into computerized, and still actively trade today. Traders like this who have adapted to the markets for 40+ years will offer you far more wisdom and understanding than some guru who's been trading futures for the couple of decades.Experience is everything when it comes to trading.