Building a Watchlist – The Steps

Here’s a high-level look at my watchlist building process.

Perform end-of-week market analysis

Read Gilmo, Kirk, Murphy, TI, STI, SME, TA
Analyze $VIX, $TNX, $NYMO, $NYSL, $BPNYA, FXY, $USD, $BDI
Analyze sector performance to see where the money is

Run the following Stockchart scans

TAZ Long/Short (on extreme market days)
60 days Highs/Lows within past 15 days

Shortlist the above list further based [...]

Daily Market Indicators Glance

A Candleglance of all the essential Inter-Market Indicators
30 Day Federal Funds Futures (ZQ)
TED Spread
LIBOR 3-Month Rate
CBOT Rates
Bloomberg Key Rates
NYSE Percentage of Stocks Above the 200 MA
NYSE Percentage of Stocks Above the 150 MA
Economic Data That Influence the Market

All about Options & Futures

Selecting Stocks to buy options on
Trading Index Options
Option Pricing

Options and Gamma
Directional Trading

Synthetics
Credit Spreads & Volatility

More on Credit Spreads
Implied Volatilty – 4 Easy Steps

Implied Volatility – How to Render it Obselete
Implied Volatility – Profiting from its changes
Concept Of Open Interest

Vega – On Implied Volatility
Vega versus Delta
Using Black-Scholes
VIX Analysis
4 Reasons Not To Trade VIX Options

Futures Trading – [...]

A Collection of Articles from the OA

Trading Breakouts
Trading Trends
Trading Triangles
Trading Support Bounces
Exits
Exits – Evaluating
Exits – A Profitable Trade

Pattern Failure

Picking Stocks
Trading Rules & Systems
Risk versus Reward
Diversification

Worst Case Stop Orders Using ATR
Hedging
Trade Planning
Planning the Trade & Trading the Plan
Anatomy Of a Loss – I
Anatomy Of a Loss – II
Anatomy Of a Swing Trade
Analyzing a Complicated Market
Market Divergence

My Diversification/Hedging Strategy

Stage 4 Bear Market Strategy

In this stage, we have a confirmed Bear market downtrend in the major averages. Several of the sectors are also in this stage. The hedging strategy in this market is to -

Ride all the bearish positions along their trendlines, until broken (Trend Trade the positions).
The loss in account equity due to [...]

What is Beta?

Coming soon…

Essential Elements of Successful Trading

Time Horizon

Decide if your outlook is long-term bullish/bearish, or short-term. Use major market averages, sectors action to guide you.

Broader Market

Align your trading with the the broader market averages. Trade bullish price patterns in a bullish market; conversely, trade bearish price patterns in a bearish market. However, keep an eye of your total delta, which should [...]