Tuesday, May 16, 2006

New ideas to try out next week

My plans for the future to progress my trading career:

1.Find the stocks you are going to trade for the day before market open.(In this case, I already have a dozen that I'm familiar with trading, and I'm hoping a couple of these stocks will present a trade setup)
2.Know what economic news is coming out in the morning that can affect the indices.(I check out www.deltat1.com for important economic news and check out the indices pivot points and analysis, and also check out yahoo finance news, and www.tradethenews.com, and also I have CNBC up, sometimes I have bloomberg running on my computer, but I have to shut it off before I start trading or else my computer gets too slow.
3.Wait for the market to react to whatever economic numbers come out and try to determine how the market is going to trade that day.(I watch the futures,NQ,ES, and YM)
4.Have all of your charts setup for the different time frames you are looking at setups on.(I have 2 charts per stock,sometimes 3, and also a T & S window up and running. One chart is a volume chart based off of so many of shares traded, like 50s traded per bar, I also have a 24 second chart with MA's used as paintbar indicators. Sometimes I have a 3 second chart up that I use with T&S for trade entries and exits, and this is primarily only used for market open for quick scalps.)

5.Check out trading in pairs, spread trading, and stock short term hedges. Basically, I'm looking for stocks that follow an index, like the 20 components of the SOX, and I'm looking to go long the best looking stock out of the 20 and short the worst looking of the 20. If TXN or INTC look like they are leading the SOX/SMH, then I would want to go long the slower of the 2 and short the faster moving leading stock.
More on this idea later.


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