I am trying to build a basket of stocks to watch over a cross section of sectors that follow the economy as a whole. I would like to narrow it down to 10-20 stocks. Does anyone have any guidelines for building a basket of stocks to trade. I am not a fan of screening for stocks, would prefer to use the basket approach. I have a few stocks I am familar with but I mostly tend to follow the indices.
Keep an updated list of stocks with high relative strength and look to buy these when the market is down. Top IBD100 stocks work well to produce a consistent daily 1-2.5% return. But you have to be a good market timer if your going to trade in and out daily othewise average down with a risk control plan and hold for 2.5 - 10% gains. Compound your gains. Flush and repeat. Good luck.
Im really trying to get away from just watching the dow. I am a dowaholic and if i had it my way i would trade the YM. I am trying to build the skills of being able to watch multiple things at once. Its more of a exercise than it is anything else. I am keeping away from ETF's also.
Because I am trying to focus on being able to track multiple stocks at once. I am not interested in what a particular sector is doing rather this is an exercise to get me used to following multiple stocks at once so i gain my own understand as to what the market is doing and also so I build a repitoire for trading equities.
There seems to be no valid response to your original question. Seems to me that you are not cool with the idea that you may just be an index trader kinda guy. You asked about a basket of stock across the economy and its sectors......uh THAT'S WHAT THE DJIA WAS DESIGNED FOR! The YM isn't a stock! If you dont' like the stocks contained within it, tweak them a little. If you want to watch the futures then watch them. There's more stuff to trade out there than there ever has been, sounds like to me you just aren't sure where to start.
again i do not want to get into why. Obviously I think i would be better off trading indices. The purpose is to train myself to gain exposure to trading multiple products at the same time. I find it so frustrating the need to explain myself. All i wanted was techniques on how to build a basket of stocks. Why is that so difficult? I need to gain the experience trading multiple products at the same time so for practice i want to start watching multiple stocks at the same time. So i will ask again for techniques for building a basket of stocks.