You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
TBA99 - Trade Journal 2012
- Thread starter TBA99
- Start date
My stock qualifying system is up and running. Attached is an updated picture (previous picture 4 of 4). Quotetracker is used for the charting software. The streaming stock data is provided by the broker (temporary - will be switched to a streaming stock subscription service). When qualifying stock selections I like to view my stock charts in full screen mode. The stock qualifying system allows 4 different chart time views of a single stock. When trading I prefer to initiate all trades based on the 1 minute charts. Other chart time views that I monitor include the 5 minute, 10 day, and 3 year.
Most broker and streaming stock data services limit chart views to the previous 5 to 10 days. I like to view up to 30 days.. This 30 day view is displayed over 3 monitors each displaying 10 days each. This is achieved using two extra computers loaded with Quotetracker and two video switch boxes. This portion of the system will be fully operational in 23 days.
After viewing charts for many years I have kicked all of the indicators to the curb including the volume indicators.
TBA99
Most broker and streaming stock data services limit chart views to the previous 5 to 10 days. I like to view up to 30 days.. This 30 day view is displayed over 3 monitors each displaying 10 days each. This is achieved using two extra computers loaded with Quotetracker and two video switch boxes. This portion of the system will be fully operational in 23 days.
After viewing charts for many years I have kicked all of the indicators to the curb including the volume indicators.
TBA99
Attachments
Stock qualification (screening) is based on specific criteria.
My philosophy on trading is that any stock that has a daily price range of $0.75 or more and has an average daily volume of 2 million or more shares can be traded profitably.
Stock qualification is a two step process. The first step is to screen stocks based on last price, average volume, and dividend payment (recent year). The second step is to take the results (list of stocks) generated in step 1 and calculate the average daily price range for each stock. I like to run this stock qualification procedure every two to three months to keep my list of potential stocks for trading up to date.
I use Googleâs Finance stock screener to qualify the stocks. The criteria for step 1 is displayed below.
Last Price Minimum: $40.00 Maximum: $100.00
Average Volume Minimum: 2M Maximum: Max. Value
Dividend (Recent Year) Minimum: $0.00 Maximum: Max Value
The reason I use a minimum $40.00 share price is that I want to qualify stocks that range at least $0.75. From my observations, the higher the share price the wider the daily price range. The reasons that I max out at a share price of $100.00 is that higher price stocks reduce purchasing power, may have wider daily price swings, and have the risk of a catastrophic gap up or down overnight when the market is closed.
The average volume of 2 million or more (more is better) means that the stock has liquidity and the spread between the bid and ask should be small. Buying & selling block sizes in 200 to 400 shares usually provide quick fills. Use of limit orders to enter and exit trades limits slippage to stop orders only.
The dividend criteria is something that I have added recently. My evolution in trading has taken me from a pure daytrader, to a swing trader, and now to a hedge style trader. As a hedge style trader I plan to hold trades for a longer time period and include stock dividends as part of my trade strategy. The stocks are sorted in descending order based on dividends paid in the last year. Adjusting the trading period to a longer term hold may also have tax implications on the way profits are declared (Canada - income vs capital gains). Also the long side of the hedge fund could be traded within a tax deferred or tax free savings account (Canada - self directed RRSP / TFSA). Therefore only the short side of the hedge fund profit would be subject to declared income or capital gains. I will have to check this out with a tax specialist / accountant.
The results for step 1 was 147 stocks. This list is then keyed into a Quotetracker portfolio. You may have to create a second portfolio if the stock list exceeds the maximum number of viewable stocks set out by your stock streaming data feed provider.
Picture 1 of 3 Google stock screener with the criteria selected.
Picture 2 of 3 Spreadsheet - Results Step 1 (sorted descending order by dividend)
Picture 3 of 3 Quotetracker Portfolio
My philosophy on trading is that any stock that has a daily price range of $0.75 or more and has an average daily volume of 2 million or more shares can be traded profitably.
Stock qualification is a two step process. The first step is to screen stocks based on last price, average volume, and dividend payment (recent year). The second step is to take the results (list of stocks) generated in step 1 and calculate the average daily price range for each stock. I like to run this stock qualification procedure every two to three months to keep my list of potential stocks for trading up to date.
I use Googleâs Finance stock screener to qualify the stocks. The criteria for step 1 is displayed below.
Last Price Minimum: $40.00 Maximum: $100.00
Average Volume Minimum: 2M Maximum: Max. Value
Dividend (Recent Year) Minimum: $0.00 Maximum: Max Value
The reason I use a minimum $40.00 share price is that I want to qualify stocks that range at least $0.75. From my observations, the higher the share price the wider the daily price range. The reasons that I max out at a share price of $100.00 is that higher price stocks reduce purchasing power, may have wider daily price swings, and have the risk of a catastrophic gap up or down overnight when the market is closed.
The average volume of 2 million or more (more is better) means that the stock has liquidity and the spread between the bid and ask should be small. Buying & selling block sizes in 200 to 400 shares usually provide quick fills. Use of limit orders to enter and exit trades limits slippage to stop orders only.
The dividend criteria is something that I have added recently. My evolution in trading has taken me from a pure daytrader, to a swing trader, and now to a hedge style trader. As a hedge style trader I plan to hold trades for a longer time period and include stock dividends as part of my trade strategy. The stocks are sorted in descending order based on dividends paid in the last year. Adjusting the trading period to a longer term hold may also have tax implications on the way profits are declared (Canada - income vs capital gains). Also the long side of the hedge fund could be traded within a tax deferred or tax free savings account (Canada - self directed RRSP / TFSA). Therefore only the short side of the hedge fund profit would be subject to declared income or capital gains. I will have to check this out with a tax specialist / accountant.
The results for step 1 was 147 stocks. This list is then keyed into a Quotetracker portfolio. You may have to create a second portfolio if the stock list exceeds the maximum number of viewable stocks set out by your stock streaming data feed provider.
Picture 1 of 3 Google stock screener with the criteria selected.
Picture 2 of 3 Spreadsheet - Results Step 1 (sorted descending order by dividend)
Picture 3 of 3 Quotetracker Portfolio
Attachments
Step 2 of the stock qualification process is to calculate the average daily price range [Daily High Price($) - Daily Low Price($) / No. Of Trading Days] of the stock results from step 1.
(Picture 1 of 4)
The historical data (1 year) for each stock can be accessed from the stock results list in step 1.
(Picture 2 of 4) & (Picture 3 of 4)
This historical data can be downloaded to a spreadsheet (Excel) where the data can be massaged to get a final calculation. (Picture 4 of 4)
TBA99
(Picture 1 of 4)
The historical data (1 year) for each stock can be accessed from the stock results list in step 1.
(Picture 2 of 4) & (Picture 3 of 4)
This historical data can be downloaded to a spreadsheet (Excel) where the data can be massaged to get a final calculation. (Picture 4 of 4)
TBA99
Attachments
I have updated my stock qualifying file to include the quarterly earnings dates for the stocks that I critiqued during the stock screening process. Again I canât guarantee the accuracy of the file.
My stock strategy doesnât include an earnings play. Itâs a 50 / 50 win or lose. I prefer to be hedged at the end of the day before an earnings call and make money on the longer term hold, intraday activity, and the dividend. If no shorts are available Iâm willing to take my money off the table until the earnings are released and price direction is established.
All stock earnings dates outside the current quarter are estimates. Therefore it is important to verify the actual earnings dates for each quarter. It is recommended that two different stock information sources be used.
TBA99
My stock strategy doesnât include an earnings play. Itâs a 50 / 50 win or lose. I prefer to be hedged at the end of the day before an earnings call and make money on the longer term hold, intraday activity, and the dividend. If no shorts are available Iâm willing to take my money off the table until the earnings are released and price direction is established.
All stock earnings dates outside the current quarter are estimates. Therefore it is important to verify the actual earnings dates for each quarter. It is recommended that two different stock information sources be used.
TBA99