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Preparation for the day

  1. I print out the quotes page (last, net chng, net % chng, open, high, low, volume, range) from last day, open Briefing.com for latest news, Island.com for Top 20 in aftermarket volume from previous day and Top 20 in premarket volume the actual day, open my Qcharts SW and start ...

    How do you, the fellow traders, prepare for the day?
    Am I missing anything?


    Lojze
     
  2. Futures... futures... futures....
    Support and resistance on the futures...
    Average trading range of the futures...
    Pivot points for the futures...

    But I only do the e-minis...
    :p
     
  3. Usually pick myself out of the gutter, figure out where I am, limp my way home, then usually a shot of beam for the wakeup call.....
    Then it's all about Blind date and Jerry springer.
     
  4. praetorian = THE PARTY TRADER ..i likes to party hardy....hahahahaha!
     
  5. By the opening bell, I complete the following.....
    some of the work is done the night before....

    - Define all the key support and the resistance levels for all
    the stocks in my standard trading basket. Levels are based
    on last 10 days levels, Fib, 200/50 MA, trend lines, etc...
    - Do the same thing for the standard indexes and industry
    indexes related to the stocks (e.g. SOX).
    - Check for news on each stock and related stocks in the industry.
    - Define a plan for each stock for the day (e.g. Sell short at 34.92,
    buy at a sop and reverse at 44.15, etc.).
    - Check pre-market indicators.
    - Complete market scans looking for any candidates outside
    my standard basket of stocks traded (note very rarely
    is anything taken)..

    That's the story....

    - Greg
     
  6. I am curious- how many stocks might be in your "trading basket" and what sort of method do you use to select?

    bucket-trader
     
  7. I drink some coffee.
     
  8. I wonder what Praetorian drinks before the open? :eek:
     
  9. this is too fun to resist...
    I switch on CNBC, that usually gives me a big laugh, really big.
    Usually coffee comes next, but not if I am still laughing.
    That's pre market.. at the bell I switch it off.

    all the trading is prepared the day before. I only follow the plan during the day. However I go through all the plays and scenario one more time before the open.
    sometimes I virtually join praetorian watching Springer. LOL.

    tntneo
     
  10. I took the following steps in selecting the NASDAQ
    stocks I trade..... note that I started the process
    a couple years ago...

    1. Evaluate all NASDAQ stocks and filter on the following
    criteria (V> 500K per day. Float >80M, P > 22, SOES Tier
    (formerly important), MM volume, indexes the stock is
    included in. ATR > 2, looking for second tier not industry
    leaders.
    2. Selected a list of 42 stocks and followed them for 6 months.
    Looked at the charts of the stocks after the close, and looked
    for two tradable moves in each stock each day. Kept records
    each day regarding if the stock met this criteria. Looking for
    moves that would provide $.50 to $1.50 in profits over a
    timeframe of 30 minutes to 3 hours with $0.35 risk.
    3. Pruned this list to the top 10 stocks. Paper Traded these 10
    stocks for 5 months. Proved that the general S/R charting
    strategy would be successful on paper.
    4. Started trading the 10 stocks as my standard basket and
    expanded out from there. Keep track of the W/L records of
    the 10 stocks and plan to rotate out any of the stocks with
    bad track records (W/L). For example JNPR has sunk to a
    price level where it can not be traded profitably via the
    targeted strategies.

    Actual trading is meeting all the projections written in the
    business plan. I urge every trader to create both a strategy
    and a business plan.

    Note that I vigorously studied the market for over one year
    before I even considered entering it as a Trader. I had clearly
    defined strategies and a game plan. My only shock was the
    summer month of August when the reduced volume decreased
    the average daily range of many stocks to a level where looking
    for 1 point of profit did not work... this was taken as a lesson that
    will be remembered in the future about the light volume summer
    months.... the need to modify strategy based on market
    conditions.

    - Greg
     
  11. I know that the context of the site is daytrading, but I really am not qualified to give advise on that field. I have however been a position trader for the last several years and been fortunate to have been successful (at least in terms of my own goals) with it.

    For my own Prep as a position trader once a month I scan monthly charts of stocks showing good earnings growth (I define "good" as having an IBD RS of 70 or better) and look for stocks showing chart patterns that I like. I tend to focus on long bases near relative lows and pullbacks from highs. Once I have this list (Most months it is between 20 and 40 stocks) I will look at the weekly charts each weekend looking for continuation patterns. That tends to give me a list of between 2 and 8 stocks that I will look at each night for chart patterns to buy. I do not short stocks, but I would assume a good shorter might reverse this, but I can not say for sure. My activity level is is much lower than most people who post here at 1 to 5 trades a month, but it has worked for me.
     
  12. As an alternative to Springer, might I suggest a glance at the Latest Broker Ratings where an unfolding soap opera should hold your attention.
     
  13. nice answer backdoc.
    I did not reply too seriously because the board is so much weighted toward very short or scalp trading.
    I used to love your style of trading. I used software to speed up analysis (few software can handle this kind of trading). But the pace was too slow for me. I did not like the drawdown either.

    Nowadays (after a very high pace NQ trading) I target the time frame inbetween.
    Because I know all my rules, they are coded in software. The software does the work of preparation the night before (it's rather simple, I am just lazy, so the software works).
    The important point of my preparation is to go through the charts and the rules. And, maybe most important, to remind me what to do if..

    I play the 'what if' game for all my positions and targets. no 'what if' about news (you can never prepare for all possible news!). the preparation is simply about knowing what to do if a trade goes up, then goes up more, or goes down, or down more, or sideways (!).
    so it gives me several stories per trade, based on direction and speed/volume in that direction.

    that's it. But I do that every morning quickly. the night before I do that before sleeping (so it gets deep down the brain).

    have a plan. trade the plan. be prepared for all the twists. then trading is less thrill, but more profitable !

    tntneo
     

  14. I recommend watching CNBC the way N. Taleb does as he discusses in his book 'Fooled by Randomness' - keep it on throughout the trading day, but turn the sound down to zero so whenever you look you only see mouths flapping. If you pretend they are talking in chinese or lip synching to 80's music the effect is even better too:D
     
  15. I am a super heavy scalper so I do very little to prepare,

    VB (vertical bar analysis) on my three stocks and check for news
    Knowing the futures indications is nice to know as well.

    The most important item that I take care of before I trade is cleaning the pipes! I usually go twice in the morning to make sure that I am light and won't be taken away from the screen for emergencies.

    The human body spens more energy on digestioning than any other process, my blood circulates much better when it is in my head instead of my gut.
     
  16. i generally check some news, check what the world markets did...drink plenty of coffee to get things working....cause you don't want to have to run to the men's room at 10am, so its good to get it all out early...
    then i listen to Howard on the radio...while I set up the software and scan through a few charts
    and I too watch a little Springer show during lunch