Is creating a watchlist for tomorrow worth it???

inandlong · Jun 18, 2003

Fast_Trader it sounds like you are doing just fine.

Is there anything wrong with making a watchlist and then not using it? Only if it takes away from time with your family.

Good luck!

EMini-Player · Jun 18, 2003

Thanks. I've improved my skill and become decent at identifying and trading trends/patterns. The only problem I'm having lately is being a bit gun shy when it comes time to pull the trigger. I find myself looking too far into the future and over-analyzing the entries. I just have to make the decision process faster!

FastTrader

inandlong · Jun 18, 2003

I posted this the other day about TA and news and I still fall prey to the same thing sometimes F_T. Looking into the future, thinking about what ifs, allowing my feelings to infiltrate the trade stinks. But when I look at charts and look back at patterns and divergences etc., I never one time read the news archive to see what was going on then. When a flag breaks or an ma is crossed, I don't check to see if there were some announcement made. But like you are dong occasionally, I overthink the situation.

Right now there are so many of us who are wondering when the pullback is coming. It might not! Stocks breaking out might run for another 1000 points on the Dow. Who knows? Certainly not me. Yet I have passed on some trades recently because of what I think, and not what I see. And of course they have been winners. Not for me, because I passed.

candletrader · Jun 18, 2003

Quote from Fast_Trader:

For now, I only day-trade equities and each night I go through a couple of hundred stock charts and compile a list of stocks to watch tomorrow, but since trading is done in real-time based on market conditions at that point in time, I rarely trade any of the stock picks from the night before. Just wanted to know if other people were following a similar practice, and their thoughts on this topic.

Thanks in advance.

-FastTrader

In my view, its a waste of time, as the returns to the additional time spent analyzing stuff after-hours don't justify the time spent, in my experience... but if you enjoy doing such a thing, then it can cause you no harm...

jsemmel · Jun 18, 2003

I create a nightly watch list every night and follow the progress of each stock until it exits or stops out. I use my own software to produce scan lists. These (slf files) go nicely into realtick minders where I then narrow down the lists using a variety of intraday charts linked, and daily charts with additional indicators that I like.

I post this on my website www.tradingscans.com which is affiliated with tradingfrommainstreet.com, a sponsor of elitetrader.com

I have found that spending the time writing down all the details has helped me gain confidence in the various setups. Lookig at only 50 or so stocks each night also doesnt interfere with my personal life like it did when I looked at 1000 or so each night.

I'm writing software to autmate this process even more, but this has been an exhausting and tedious process, and I'm not sure I'll ever get it the way I want it.

hope this helps

Jeff

dotslashfuture · Jun 18, 2003

Quote from Don Bright:

We strongly advise our people to pick one or two stocks to trade.....and become surrogate specialists in those stocks. It's kind of like inviting people to play in your own poker game, with people you know well....as opposed to finding a new poker game in a new city every day (I hope that made some sense).

The "breakouts" and "breakdowns" worked for a while during the bubble, and during the IPO phase.....but we're back to normal markets now, and the charts and tealeaves just don't seem to cut it (for trading....investing is another whole thing).

FWIW....

Don

you mean be a surrogate specialist except also paying commissions and the spread and not getting the feedback of being on the floor ? Hmmmmm..... Sounds like the specialist will win that game.

EMini-Player · Jun 19, 2003

Just wanted to post back that I believe creating a small watch list is definitely worth it. Wouldn't have traded MRVL, MEDI and QCOM today if I had not gone through the charts last night.

-FastTrader

Don Bright · Jun 19, 2003

Quote from dotslashfuture:

you mean be a surrogate specialist except also paying commissions and the spread and not getting the feedback of being on the floor ? Hmmmmm..... Sounds like the specialist will win that game.

The Specialists don't really trade all that much anymore.....they are employees of firms, accomodating orders for the most part. The ability to read 1 or 2 stocks well is certainly something that needs to be learned, but we find it to be a solid (core) strategy for good traders.

We like our people to respond to whatever the market is "throwing at them" each day....and "go with the flow"...But, as always, "if you're making money, go with what you know"....

Don

Mecro · Jun 19, 2003

Quote from Don Bright:

The Specialists don't really trade all that much anymore.....they are employees of firms, accomodating orders for the most part. The ability to read 1 or 2 stocks well is certainly something that needs to be learned, but we find it to be a solid (core) strategy for good traders.

We like our people to respond to whatever the market is "throwing at them" each day....and "go with the flow"...But, as always, "if you're making money, go with what you know"....

Don

Are you serious? Are you that blind not to see when the specialist is longing or shorting the stock?

LOL

Don Bright · Jun 19, 2003

Quote from Mecro:

Are you serious? Are you that blind not to see when the specialist is longing or shorting the stock?

LOL

I would be glad to discuss it. We have several Specialists within our Firm. The rules are pretty specific about 'initiation" of upticks, downticks, and all the rest. Participation percentages have a lot to do with it. They are aware of what orders "are around" - and, of course, that can be a big benefit. I'm not at all saying that they are all "upstanding" in all respects, but we feel that we can "read the tape" pretty well, and join in with them.

I do agree that the MM's and Specialist Firms on the exchanges can (and do) have an edge. That is the whole point of trying to learn what they do, and follow along.

Don