Day Trading Diary, page-40

Hi Hibikidan, Have been watching your posts with interest as I too am very new to the DT scene.
Thought I might just share with you a couple of things I have learnt over the last 6 months re picking stocks..

Don't limit your watchlist to a few stocks.. Every stock on the ASX that trades under $1.50 is tradable on the right day.
Don't ever try and predict when that day will be - just be ready to react when / if it happens.
I use a DDE spreadsheet that has all the ASX stocks on it with data updated in realtime when the market is open. I have then built a scan that trawls through that every 30 seconds and gives me a list of stocks that are moving for the day along with volume and a few other parameters..
So rather than try and predict what will move today, I wait and see what is moving.. then assess the merits of the stock based on my TA and either take a position or look at the next one.
I have found this system to limit (slightly) the potential profit as you don't always get the first move - but it takes a lot of risk off the table as well.

Volume is a relative indicator.. some of the stocks we trade have a billion shares on issue.. 5 mill volume is nothing..
I have found it is better for my system (and to not get trapped in an illiquid stock) to look at the number of trades per day.. If it hasn't been traded 25 times, then it doesn't show up on my scan. When it does show up, I also see how many times it was traded yesterday.. So if a stock shows up that has been traded 25 times today but only 2 times yesterday, I'll generally stay out of it - unless there is a catalyst that makes me think it will continue on for a day or two with increased interest.. good news etc..

Lastly - I noticed on your share trading log spreadsheet calculations that you have set the number of ASX trading days to 250.. there are actually 253 trading days this year.. doesn't make much difference, but you seem to me to someone who like everything to be perfect!

Good luck with all. I look forward to seeing how you get on with it.

Cheers