How To Manage A Watch List

Discussion in 'Risk Management' started by dkravchenko, Nov 24, 2009.

  1. Dear Forum's Members,
    Can anybody share some experience on managing watch list?
    I really need some good examples. I have problems on how to combine addition of new stocks and tracking the ones that have been on watch list for a while. How do you update buy points?
    Do you use Excel spreadsheet?
  2. there are about four basic things to take care of.

    1. You universe (weekly)

    2. Qualifing stocks for hot listing. As soon as stock appears on weekly add/delete of Universe)

    3. Setting up a hot list (Weekly as a batting order for each of your streams of capital)

    4. Carrying out the trading routine using a daily analysis sheet. In the evening if employed or on a 30 minute chart during daily monitoring)

    People new to this process make about 30% a month.

    You can pick up all the Excel sheets for doing this by searching PVT trading.

    It is best to form a local group and share the work and use a common hot list. Such groups exchange their DAS (daily analysis sheets) after each daily cycle.

    Two documents also have a full description with examples. Volume leads price in these applications. Read Building Minds for Building Wealth and read Putting the Pieces Together. In the latter, there is a one pager with three rules for doing everything. It has been tested by some members of ET and no one has found fault with the rules for several years.

    The approach has been in use for 52 years and includes four generations of successful practitioners.
  3. Redneck



    Hersey’s comments aside

    Here’s a suggestion on how to build and maintain a watch list

    Step 1
    Pick a stock – good volume, manageable ATR (meaning not so volitale)

    Add it to your watch list
    Now get good at trading that stock

    Step 2
    Repeat step one – now you have two stocks to trade

    Step 3
    Repeat step one

    Wash, rinse, repeat until you have 5, 10, or even 20 stocks

    Then trade them over and over and over and over…..

    Should one of your watch list stocks die – remove it and find another – and add it

    Why chase a multitude of stocks all over the place... Get really good at one thing (one stock) then expand out what you’ve learned (your skills) to other stocks

    Boring – yes – but profitable - Your choice as always

    Food for thought Sir

  4. mcdull



    Being a new learner of your SCT method, I am trying to collect all the documents you mentioned in your posts.

    I am not able to find the document "Putting the Pieces Together", can you email it to me? I have PM my email address to you. Thanks.
  5. Dear Jack,
    Thanks a lot for your advises!
    I am not familiar with PVT trading, what is this?

    Also, could you please re-state these 2 points with more details? I am not native English speaker and can not understand it clearly.

    1. You universe (weekly)

    2. Qualifing stocks for hot listing. As soon as stock appears on weekly add/delete of Universe)

    Thanks a lot!
  6. It is our custom to meet on Sunday am and the up to date Universe is available. Traders usually have their trades set for the next week before the meeting. We review the Hot lists which have the "batting order" for each stream set up. We spend our time looking at charts of stocks and past trading.

    Then, daily, individually, we use the Daily Analysis Sheet to track the stocks as they perform.

    A typical day is illustrated with pics taken every 7 to 15 minutes (30 of them) in "Putting the Pieces Together". There you see the stocks on the batting list complete cycles and the next stock chosen bought before it takes off on its long half cycle.

    When the SEC was unable to differentiate insider traders from traders who used this approach, the SEC issued citations to me for insider trading. It was their opinion that I could not do what I actually do unless I had insider information. Occasionally snoops from corps call me to find out who I am getting my info from. We get our information from sorting web sites and from automatic sorts off various platforms.

    It was difficult to eductate the SEC but it was done, finally. Today, anyone with a PC can do much better than the SEC to understand this style of trading. It has been written up in ET and day by day done for years at a time under PVT trading.

    To educate yourself, there is a one page chart with three rules on it. The chart is called the "unusual volume chart". On the chart is a "normalized" set of values for trading ALL stocks that can make it onto your
    Universe as determined by "quality". The chart was checked out using a lot of trials (400,000).

    "unusual volume" is a term that is a ratio of the real accumultaing volume for a day divided by the 65 day average volume. The ratio is a decimal. the Unsual volume chart has columns of three types of volume: DU, FRV, and Peaking. There is a rule on the sheet for each. All quality stocks behave the same as redneck someday will find out, maybe.

    Learning to trade stocks of quality using three rules is a very quick learning process. Our team that meets weekly can bring a person on board in two meetings of a few hours each. Fifth grade children can do it quite well after three one hour meetings and having a WSJ subscription. They naturally work together and they are happy to explain trading to their parents. They use "scoring" to do the timing.

    In ET there are many stock traders. Most find using the three rules "unbelievable and astounding". Read redneck or trader666 to find out why.
  7. "Putting the Pieces Together" is for stock trading. It is a good read since the PVT trading there is a similar application of PEP as is SCT. I will find your address and email it to you from another computer.

    Mostly everything, I believe, can be found via ET references.
  8. Redneck



    If you’re going to accuse me of something – at least get it right

    I am on record for saying that of which you speak about has merit

    I am also on the record for saying – you are a verbose and obscure speaking guru who is full of shit (full of yourself)…

    I will now add for the record – you exhibit egotistical tendencies – and you do not think/ post in a clear, concise, or a logical manner.

  9. SK0


    Mcdull, pm me for the document.
  10. Good things....
    #10     Nov 26, 2009