Friday, September 7, 2012

how do i pick which stocks to trade (07 sept 2012)

last saturday i attended a wealth securities seminar for newbies and prospective clients .. a friend of mine, a fellow blogger who works as a wealth securities analyst was one of the speakers ... and towards the end of the seminar, she introduced me to three attendees who she said wanted to meet me ... readers daw of my blog (wow .. i have 3 actual live blog readers! wooohooo!!) .. anyways we had an impromptu mini EB .. and i was asked how i pick the stocks i trade .. i evaded the question by replying to him with two of my stock picks for 2013 .. cirtek (chips) and pancake house (pckh) .. well .. i tot about it since and i guess its ok if i share or give an idea of how i pick the stocks that i trade .. so just to give it a structure ..  here it goes:

1. get stock ideas ... from:

- company news from online newsites
- pse website (company disclosures)
- fellow traders ( ... chatrooms ... blogs (faceless trader of course tops my list)
- my broker (from inhouse rumours and other brokers at the trading floor)
- broker publications

2. read financial reports of companies with good stock stories from no. 1 ... classify companies into those with good fundamentals and those with bad fundamentals

3. check the charts of these companies .. classify into .. good charts .. bad charts

4. stocks with good fundamentals and good charts .. get included in the watch list ... these get priority 1 for trading (most of my trading come from this stock list)

5. stocks with bad fundamentals but with good charts ... get priority 2 .. these get traded when there is price action and volume

6. stocks with good fundamentals but bad charts ... get included in the monitoring list .. to be included later into priority 1 list when charts start to look good

7. stocks with bad fundamentals and bad charts ... get to be included also in the monitoring list ... until they get to qualify for either priority 1 or priority 2 lists

once i get to do these .. then i trade .. now .. when do i buy? see: when do i buy?

*always subject to change without prior notice :)

back to: my trading rules