Hi all⦠Iâm trying to scale down my universe of stocks. I think I am making the typical Newb mistake of trying to be a âJack of all trades and master of noneâ by watching/scanning too many stocks. How many stocks should a new guy focus on during the day? How many charts should I be looking at in the evening for the next days prep? Should I just find half dozen stocks and stick with them and quit scanning and churning my universe of stocks. What criteria should I be using to find these stocks? Volume/Average true range/Price range/etc And any comparisons as how your universe of stocks evolved with your experience would be helpful. (i.e. did it get bigger or smaller?) Thanks, BO
Also, If you have a strategy that is say 50/50 on 1000 stocks. but 90% winners on 20 of 1000...would that be curve fitting or is there unseen risk to just play those 20? What does that say about the Strategy.
A filter you might find helpful. 1. Price $10.00 - $50.00 2. Volume: Greater than 400,000 shares traded daily 3. Float: 5 million to 60 million shares (daily) 4. Positive Earnings 5. Insider Owned Shares > 5% 6. Institutional Owned Shares > 5% You could narrow the list further by choosing to focus on equities which show a cycle of 20% (or more) Price improvement over a period of 6 to 8 days a minimum of five times in the previous six months. - Spydertrader
Thank you Spy, very insightful The screeners I have can't scan for items 3,4,5,6 can you recomend a screener or point me in the correct direction. The 20% movement sounds like that would be related to volitility or ATR or am I missing the point? How big is your universe of stocks?
This is the reason why I bailed out of stocks to trade futures. No more nightly screeners. No more idiotic analysts' upgrades/downgrades. No more earnings or conference calls. No more tasty morsels of insider trading. Simply put, no more bullshit.
The best: http://finviz.com/screener.ashx?v=111&ft=4 http://screener.finance.yahoo.com/newscreener.html http://stockcharts.com/charts/scans/ http://www.google.com/finance/stockscreener