Stock Picking

B

BarOpen

Hi all…

I’m trying to scale down my universe of stocks.
I think I am making the typical Newb mistake of trying to be a “Jack of all trades and master of none” by watching/scanning too many stocks.

How many stocks should a new guy focus on during the day?
How many charts should I be looking at in the evening for the next days prep?

Should I just find half dozen stocks and stick with them and quit scanning and churning my universe of stocks.

What criteria should I be using to find these stocks?
Volume/Average true range/Price range/etc

And any comparisons as how your universe of stocks evolved with your experience would be helpful. (i.e. did it get bigger or smaller?)

Thanks,
BO
 
Also,
If you have a strategy that is say 50/50 on 1000 stocks.
but 90% winners on 20 of 1000...would that be curve fitting or is there unseen risk to just play those 20?
What does that say about the Strategy.
 
Quote from BarOpen:

I’m trying to scale down my universe of stocks.
More...

A filter you might find helpful.

1. Price $10.00 - $50.00
2. Volume: Greater than 400,000 shares traded daily
3. Float: 5 million to 60 million shares (daily)
4. Positive Earnings
5. Insider Owned Shares > 5%
6. Institutional Owned Shares > 5%

You could narrow the list further by choosing to focus on equities which show a cycle of 20% (or more) Price improvement over a period of 6 to 8 days a minimum of five times in the previous six months.

- Spydertrader
 
Quote from Spydertrader:
1. Price $10.00 - $50.00
2. Volume: Greater than 400,000 shares traded daily
3. Float: 5 million to 60 million shares (daily)
4. Positive Earnings
5. Insider Owned Shares > 5%
6. Institutional Owned Shares > 5%

You could narrow the list further by choosing to focus on equities which show a cycle of 20% (or more) Price improvement over a period of 6 to 8 days a minimum of five times in the previous six months.

- Spydertrader [/B]
More...

Thank you Spy, very insightful

The screeners I have can't scan for items 3,4,5,6 can you recomend a screener or point me in the correct direction.

The 20% movement sounds like that would be related to volitility or ATR or am I missing the point?

How big is your universe of stocks?
 
Quote from Spydertrader:


5. Insider Owned Shares > 5%
6. Institutional Owned Shares > 5%
More...

Spydertrader, thanks for adding to this post ...

Where can data for "5" and "6" be located?
 
Quote from BarOpen:

I think I am making the typical Newb mistake of trying to be a “Jack of all trades and master of none” by watching/scanning too many stocks.
More...
This is the reason why I bailed out of stocks to trade futures. No more nightly screeners. No more idiotic analysts' upgrades/downgrades. No more earnings or conference calls. No more tasty morsels of insider trading. Simply put, no more bullshit.
 
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