I narrow down the universe of stocks to a handful of names sometimes a little more, then the market will narrow down the list further by getting me in or keeping me out of the names that make my list. If the stock does not go through the previous day's high, then I don't get involved (99% of the time). Yesterday I had 7-names on my list only two when through yesterday's high. This is what works for me, I look at charts a little different, and I believe certain things that you may not believe or agree with.
"How you trade is shaped by your beliefs. You do not trade the markets. Instead, you trade your beliefs about the market." Van K. Tharp.
STEPS ALL BEFORE THE MARKET OPENS.
- SCAN.
- PUT NAMES ON A WATCHLIST.
- SET ALERTS ON YOUR SOFTWARE.
- FIGURE OUT WHERE YOUR STOP LOSS WILL BE FOR EVERY NAME.
- FIGURE OUT HOW MANY SHARES YOU ARE GOING TO BUY, RISK, ETC.
- YOU CAN ENTER THE ORDERS MANUALLY AS THEY TRIGGER OR YOU CAN PLACE YOUR BUY STOP ORDERS PRE-MARKET MAYBE WITH A STARTING TIME LIKE 9:45.
- THE ABOVE ARE THE ONLY THINGS YOU CAN CONTROL FOR THE MOST PART.
- ONCE YOUR BUY STOP IS HIT, THE MARKET IS GOING TO DO WHAT It's GOING TO DO REGARDLESS OF HOW MUCH YOU WATCH OR CHEER.
- RINSE AND REPEAT.
STOCK OF THE WEEK RECAP
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463.
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