Every morning we prepare for each market day in an objective and methodical way, coming armed and eager with a winnowed list of the “best” long and short trade ideas. They might be aggressive continuation plays; professional gaps; failed patterns; morning day trade longs into the reversal periods, or just other “watch” items that have not matured enough to warrant inclusion in our swing setup or trading style. But make no mistake about it. The fact that they are listed means something technically valuable exists. Write each one down every day. Watch them. Study them. Paper trade them. And don’t give up on them unless the reason you selected them no longer exists.
But how many of you have given up on that particular stock after an hour because you are bored or frustrated that they have not acted as intended in delivering a low risk, high odds opportunity? Then, whether moments or even days later, you come across them again, only to see them perform handsomely as intended after you have discarded them!? We all have! Somehow, once we stop watching a stock, it’s like the stock in question says, ‘Ok, all’s clear! He’s not watching. Let’s get moving!’ Instead of berating yourself for missing the trade, here are a few tips to help you both learn more about technical analysis, and hopefully capture some of the explosive gains that your original skill suggested was possible.
The fact that a symbol made it to your watch list means that they had certain compelling technical validity, having met the “final cut” from your Live Traders post-market and or pre-market trade setup search methodology. Separate them into long and short market minders. Mark the top one-to-three in each list. I put my top candidates in separate 5-Min. charts, to watch their every move. Set alarms on the others. Review them again at the morning reversal periods, over lunch, and after the market closes.
A post-market review is needed for two main purposes, even if you did not trade it. First, so you can review how the pattern developed, as this is how you gain confidence: by watching thousands and thousands and thousands of patterns over time. Second, you want to see which stocks warrant immediately being transcribed on your watch list for the next trading day. Particularly armed with the knowledge and strategies from Professional Trading Strategies (PTS), even so, some patterns take longer to develop. For example, I might still want to watch a stock where a simple Buy Setup (BS) failed to trigger, or even did trigger and stop out, but which still has potential as a possible shake out on major support and potent reversal bar. I might want to watch stocks with bullish or bearish Wide Range Bars (WRB), but that have “No Follow Through” (NFT). I might watch large basing patterns; Failed Patterns; WRB on +Vol. from a base or an extended buy setup; bullish or bearish guerrilla plays that are still valid day after day; etc.
Well, you get the picture. Do your own homework. Prepare watch lists daily; study them; and follow them! I scan before every day I trade and always am looking for the best of the best to consider trading the following day. It does not mean I trade them all, but I’m READY TO! Are YOU? Do you have a plan ready for any possibility? The more you are prepared, the more you will produce results.
Happy Trading!
