My research steps in building a watchlist (simplified)

 

Research steps:

1. Biggest % gainers - FINVIZ, Yahoo, etc. Scan for percent gainers. Check the volume, industry, and enforce criteria.

2. Catalyst - Check for news catalyst and determine if the gains are justified and demand should continue.

3. Charts - Check the intraday chart for daily repeating patterns. Check the long-term chart and determine if long or short biased.

4. Technicals - Identify support and resistance levels and assess potential long and short entry points. Understand the past behaviors and tendencies of the ticker.

5. Statistics - Look at the float, # of shares short, etc.

6. Sentiment - Check the chat, StockTwits, Twitter, and Gurus.

7. Filtration - Add filtered stocks to watchlist and prepare for potential setups for the next day.

 

It is vital that this process is complete for each ticker every night. Failure to do so can result in losses. Be meticulous. Read the news release and check the SEC filings. Above all else, don’t forget to study. How can you identify a potential trade if you don’t know what one looks like?

If there's something you wish to add to this, please comment down below and share what you know! Thanks for reading! 

 

P.S. Trader Checklist Part DEUX here: https://profit.ly/store/info/312