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01/2008
06.01.2008
Editor's
Notes
Trading
Tips:
Checklist
Sector
and ETF
Watch list
Stock
watch list
Contact me
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What
are your targets for trading year 2008 ?
Hello,
I am pleased I am sending you first issue of my free newsletter.
As I mentioned on my web pages, I believe that writing of this
newsletter will help me and you to be better traders! |
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I used quiet time of last week in December to analyze my trading during
year 2007. I went through list of all my trades. As you know I use Stocktickr as my trading journal ,
so it was easy to see all my trades and also trades filtered by
different rules.
Based on this review I prepared list of rules I have to
follow in year 2008. The most important issue I found in year 2007
trading was losses accompanies to my decision avoid my stop loss level.
Then I was forced to close trade in large loss then was maximum allowed
loss for trade. It happened only few times but it generates huge
amount of money lost in trading. My trading results in year 2007 could
be MUCH better if these trades have been handled correctly.
I was so surprised by total value of these losses that I made my number
one rule in trading year 2008:
I
WILL KEEP MY STOP LOSS LEVELS
and use hard stop loss orders
in
every trade
It was issue of my head and my ego. So I do not allow my head to think
about stop loss level again after stock trade setup is already prepared.
I defined also several other issues I want to do in trading year 2008.
All of them have to improve my trading. Checklist are one tool which
should help me in this process.
And what are your decisions
how to improve your trading in 2008 ? Let me know ....
Happy trading
Richard
Evaluate
your technical stock pick with checklist
Using automatic scanner to find best technical
stock pick is first step in stock picking process.
When I do scanning through
whole market for stocks which fit with my preferred criteria I
receive list of stock candidates. Typically I receive between
100 - 300 stock symbols for each of
broader scanner I use.
Then I manually go through
these lists. Using my knowledge of stock chart analysis , I
am selecting best stock picks and create my final short list of stocks
for swing trade setup or position trade setup.
Some time ago I realized that it can be useful to write to paper my
criteria I use for creation final short watch list .
Read more on my pages .....
.... top of newsletter
Sector and ETF Watch List
Right now are market already
in strong decline, so there is not currently any setup in ETF. I just
exited from my ETF short trades (SMH and XLY) on Friday and now I am
waiting for
bounce.
I also do not see any setup
for long trade too, possible candidates need also some
pullback.
Long
ETF watch list: XLE, XLU, GLD, IEF, TLT
Short
ETF watch list: RTH, XLY, SMH, IWM
Here is weekly chart of XLU. If current support level will
hold, then it will be good long ETF swing trade setup.
Stocks Watch List
My current opinion is that we are now in down trending
markets. Therefore I prefer to enter short trades in stocks right now.
Long plays will be only in stocks with big relative
strength and only half of normal position size. Unfortunately
stocks needs to pullback for new low risk entries to short trades.
Long
Watch list: GILD, MATK, TSCM, TECH, ACI,
ACV,ADM,BMRN,CB,CL,FPL,HOLX,JNJ, MCD, MGLN, PEP, RBN, RIG, YUM, BMC,
INTU, MSFT, ORCL, EDU
Short
Watch list: CTAS,KSS,XRX, ADP,IRF,SYY, AMAT
Ask me
I will be pleased to reply to any of your questions. Do you have
something to discuss ? Or would you like to read something in next
issue of newsletter or on my web pages or in my blog ? Let me know .
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