Short Term Trading, page-6

Thank you for your kind words.

I currently use a stock scanner (IncredibleCharts) to scan for stocks. However, it is not with the intention of using indicators to find top performing stocks - I don't use MACDs, Moving Average, etc. I had experimented with a lot of indicators in the past, and the conclusion I made was - it was much of a muchness. All indicators use the same dataset - price and volume. I feel it's much more important to understand how to read the raw data rather than trusting in an indicator to do the 'reading'.

What I do use the stock screener for is to isolate a market sector. Actually, my scan is simple for Short Term Trading - 20 day average volume of 5M+. I use this in contrast with indicators because I have had indicators that have excluded winners from my scan (false negatives). By having a neutral variable scan like volume allows me to see winners past my desk. At least when these stocks appreciate, I will be kicking myself, not for not knowing the stock, but rather my ability to read the stock. The latter gives me more opportunity to improve as a stock trader. I plan to build a knowledge base in all the liquid penny stocks, front and back.

I readily agree with your comment about timelines. Based on the amount of posts you've made on HC, your advice really holds a lot of weight. Stocks that have been inconsistent in my Day Trading portfolio have turned out great in Short Term Trading timeline. Take LNG for example - I kept buying into their 'red candle' days - very annoying, but overall the stock have made great returns in STT ($1.20 to 2.20). I'm still figuring out good timelines for STT, but 25%/month as a target for a stock isn't bad at the moment.

About your comment with watchlists and notes and thinking it out - I think you've nailed the skills any successful trader would need to master. Take Warren Buffet for example: here's a man who became successful at trading, not because he mastered Microsoft Excel or Machine Learning techniques, but rather he could see the picture beyond the numbers. I do take a page out of his value investing technique, having these points brought out in my FA Analysis. My sole reason for data collection, is not to analyze stocks, which may come as a surprise to others. Rather, its to benchmark myself as a trader, as highlighted at the beginning of the thread. I feel there's much to gain for knowing oneself's strength and weaknesses, and since I have no mentor, I have to mentor myself. This is what I hope to achieve in my learning experience.

I'm glad you gain value in my posts. It is my hope that I can continue to give to HC members in return for the great learning experience they've provided.