Building a Watchlist
On the morning of June 2, 2016, before the market Open, Sarepta Therapeutics Inc. (ticker: SRPT) hit my watchlist scanner. Please see Figure 8.1 below. It was gapping down 14.5%, had a relatively medium float (only 36 million shares, which meant the stock had the potential for good movement intraday) and a high Average True Range of $1.86 (which meant the stock on average moved in a range as large as $1.86 during the day). Higher ATRs are desirable for day trading
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Figure 8.1 - My watchlist at 6:15 a.m. (9:15 a.m. New York time) - SRPT is on my watchlist.
Table of contents
- How to Day Trade for a Living
- Table of Contents
- Foreword
- Chapter 1: Introduction
- 2020 Hindsight
- Chapter 2: How Day Trading Works
- Day Trading vs. Swing Trading
- Buying Long, Selling Short
- Retail vs. Institutional Traders
- High Frequency Trading (HFT)
- Trade the Best, Leave the Rest
- Chapter 3: Risk and Account Management
- Three-Step Risk Management
- Trading Psychology
- Chapter 4: How to Find Stocks for Trades
- Stocks in Play
- Float and Market Cap
- Pre-Market Gappers
- Real Time Intraday Scans
- Planning the Trade Based on Scanners
- Chapter 5: Tools and Platforms
- What Broker to Use?
- Trade for Proprietary Trading Firms
- Trading Platform
- Real Time Market Data
- Nasdaq Level 2 and Bid-Ask
- Indicators on my Charts
- Buy and Sell Orders
- Hotkeys
- Watchlist and Scanners
- Community of Traders
- Chapter 6: Introduction to Candlesticks
- Price Action and Mass Psychology
- Bullish Candlesticks
- Bearish Candlesticks
- Indecision Candlesticks
- Candlestick Patterns
- Chapter 7: Important Day Trading Strategies
- Trade Management and Position Sizing
- Strategy 1: ABCD Pattern
- Strategy 2: Bull Flag Momentum
- Strategies 3 and 4: Reversal Trading
- Strategy 5: Moving Average Trend Trading
- Strategy 6: VWAP Trading
- Strategy 7: Support or Resistance Trading
- Strategy 8: Red-to-Green Trading
- Strategy 9: Opening Range Breakouts
- Other Trading Strategies
- Develop Your Own Strategy
- Trading Based on the Time of Day
- Chapter 8: Step by Step to a Successful Trade
- Building a Watchlist
- Trading Plan (Entry, Exit, and Stop Loss)
- Execution
- How Did I Do Them?
- Chapter 9: Case Study of a Newly Successful Trader
- Insight from a Newly Successful Trader
- Early Trading Education
- Beginning to Day Trade
- Hitting My Low Point
- Risk the Same Amount of Money Per Trade
- Risk a Small Amount of Money Per Trade Until You Are Consistent
- Use Hard Stops to Exit Trades
- Focus on a Single Strategy Until You Master It
- Listen to Experienced Traders
- Step-by-Step Examination of a Trade
- Conclusion
- Chapter 10: Next Steps for Beginner Traders
- The Seven Essentials for Day Trading
- Do Not Be a Gambler. Be a Trader.
- Plan Your Trading Business
- Journaling Your Trades
- Trading and Climbing
- Final Words
- Andrew’s 10 Rules of Day Trading
- Glossary