Just another Stock Trader's Blog
Here are the high-level steps I follow to select stocks for my portfolio
Perform Top-Down Market Analysis
Check the trend of $INDU, $SPX, $RUT, etc.
Check the $USD versus the YEN, or EURO.
Check the $VIX (although not hugely important)
Check Crude Oil futures.
Check $TNX, $UST (Stocks & $TNX go hand-in-hand).
Perform Industry/Sector Analysis
In BULL market, pick the Top 4-5 [...]
Here’s a summary of my strategy to hedge my portfolio.
Assuming, I have a bunch of strong longs in my portfolio which I have just entered, and I’d like to hold them for a bit longer than normal, i.e. ride the trend while it lasts, which means I’d be willing to let them go through one [...]
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 [...]
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
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 [...]
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 [...]
The following are the basic categories of charts and the associated patterns I’ll be trading. I’ll be illustrating all of the strategies discussed on actual charts, later.
Stocks in an established trend
Trend Requirements and Checklist
Recent breakout on HEAVY VOLUME
Wide-range candles on the way UP
More recent UP days with high volume, preferable
Measure the projected target price for [...]
