How I Pick Stocks

For those of you who are just reading this blog for the first time, Here’s What You’ve Missed.

For starters, I am a discretionary trader. But this is not to say that I don’t think you can make money with a well defined and tested mechanical system. It is just that in creating my trading plan, I identified one of my largest strengths as my intuition and ability to pull bits of information from different sources to arrive at a logical conclusion. Were I solely to trade mechanically, I feel as if this strength would be wasted.

I currently trade 3 different timeframes, Swing (hours/days/weeks); Daytrade (minutes/hours); Scalping (Ticks/Minutes).

As building this page will be an ongoing project (for I have much to cover), I will start with my Scalping Technique for it is something that traders of all levels and capital-limits can do successfully. Plus, it will provide the structure from which a better understanding of my day & swing trading techniques can take root.

But before I begin, it is necessary to go over the trade setup and indicators I use and how I use them.

It will likely take me many days to get through this part alone, but it is crucial for understanding my methodology. So first, I will list all the tools that I use and in subsequent posts I will further eloborate on how I use each one.

How I Pick Stocks Tutorial

  • Candlestick Charts
  • Color Coded Volume
  • TRIX
  • Trendlines
  • TRIN (aka: Arms Index)
  • TICK
  • Program Buy/Sells
  • Put/Call Ratio
  • Accumulated Volume (aka: ACV)
  • 55 & 610 Tick Chart, 2, 5, 15, 60 minute charts, & Daily Chart

  • I use TradeStation for my charts and have all of this set up on 3 monitors

    Here is a Screenshot of each of my monitors:

    My Main Monitor
    Click to Enlarge

    My Second Monitor
    Click to Enlarge

    My Third Monitor for Watching Market Internals
    Click to Enlarge

    I’ll start the process of going over how I use all of these indictors in my next post so stay tuned….

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