Swing Trade Routine

[vchandra11 8]

Hi there

I am sharing my swing trade routines per attached notes for discussion purposes only. Please feel free to send comments/discussions so our BBT Forum can benefit from same. The attached sample Graphical Analysis is for a cup base chart pattern. The routine is based on information from instructor training, textbooks, Webinars and information available on the internet over last few years. One good point up front is to keep things simple and this seems to be working for me. This is not a detailed Stock Trading Plan but some routines within the plan.

Routine generally consists of:

1. Prepare a Watchlist of stocks with good fundamentals: growth and revenue

2. Fundamental analysis of each stock in the Watchlist

3. Technical Analysis of each stock in the Watchlist: Trend, Trend strength, momentum, comparison to S&P 500 Index

4. Graphical analysis/markup: chart pattern formation, buy point, base top, base bottom, projected target price, projected target time frame, stop loss exit point, partial and final profit exit points

Initially the routine seems time consuming but after time it gets better. Also by having a dedicated watchlist you get the rhythm of each stock, ie you can see your buy point approaching and can start you graphical analysis. and prepare appropriate buy order. 

 

 

 

Typical Growth Stock Watchlist.pdf Typical Fundamental Analysis.pdf Typical Chart Setup - Weekly.pdf Typical Stock Comparison to S&P500.pdf Typical Graphical Analysis - Cup Base - Before Trade.pdf Typical Graphical Analysis - Cup Base - After Trade.pdf

[Fabien 2]

Hi there,

I have been reading your posts, great feedback and content. Thank you so much for sharing.

Do you run your stock scan everyday for candidates for possible entry(ies)? Or this is a weekly routine?

Do you also have sector rotation assessment  as part of your weekly routine?

I'm working my way in creating/ setting up my daily and weekly routines for swing trading, still learning and enjoying it.

Many thanks

 

[vchandra11 8]

Hi there

I will cover the scan/screening and review of watchlists in Sample Trading Plan (to come).

However, in one of my submittals I had identified that I use three watchlists.

The main/master watchlist is screened for quarterly. Try to keep the list to around 50 or less.

I then shortlist this list after reviewing the fundamentals of each stock. This is my working list for the quarter. I try to keep this list to 25 or less, this is more manageable. I review the working list end of each week to select stocks that are in the process of forming a base and the price is moving towards the base top/prospective buy point. I can start preliminary graphical analysis at this time, followed by calculations for reward/risk potentials and selection if have several candidates.

Once I have bought the stock I will move it to my current position list for daily review, i.e. trade/position risk management.

Yes, before I enter the trade I will look for favorable market and sector conditions via price movement in S&P 500 E-Mini Futures and S&P 500 Index and SPY/QQQ/XLs. This is just a cursory graphical review to see that the stock, sector and market are moving in the same direction.

However, because I am swing trading, I am anticipating price move for a short period of time i.e. Rally-Base-Rally, get in and get out fast ....... after the move has started and before retracement. That is why I review the positions daily and even intraday to take advantage of short uptrend moves. In a good move, you can scalp as well intraday or overnight with more that 2% move.....no harm in scaling-out and taking some profit. This also reduces some risk  from a pullback and potential no bounce, and a hence stop loss exit. 

Please remember the current discussion is for intermediate-term swing trading. I use the same watchlist for short-term swing trading as well but the technical/graphical analysis and chart set-up is different.  

Great to know you are also having fun with swing trading.

Food for thought: Design you trade. Trade you design, Keep the trade simple. Take responsibility for  your design.

Please note this is not an investment advise. Please seek investment advice from you own investment advisor. Any attachments and notes are for illustration and discussion purpose only on our BBT Forum.

 

[vchandra11 8]

Please note one key component I did not mention earlier is that stocks on my watchlist have to have strong institutional trading. This is also a very important criterion for screening/scanning.

Therefore, the shortlist that I have has good growth and has institutional trading. This suggests to me that when when market, sector, industry, sub-industry moves, the stocks on my list will be prime candidate to be leaders, and this will be captured on graphical analysis as price action approaches base top with good volume.