Sunday, May 26, 2013

how do i pick which stocks to trade: a redux (26 may 2013)

i was at a dinner hosted by a trader friend and his wife last thursday ... with another trader and two byutyus broker-analysts/traders  (i was asked by the host not to blog about the dinner .. ok cge then ... im not blogging about the dinner .. ill just write something short about that was briefly discussed .. hehe .. ) ..

you see, i was sitting across one of the byutyus broker-analysts/traders (byutyus na .. brainy pa) .. i forget now what we were discussing .. just that i somehow remarked that ... as a rule i only buy stocks that have ongoing stories attached to them ... especially those with clear dates by which certain things are supposed to happen .. these filters out most of the stocks and just limits my choices to less that five stocks at a time ...

as i was having coffee this morning .. i recalled that i blogged before something about how i pick stocks ... how do i pick which stocks to trade (07 sept 2012) .. and i guess id like to revise that list a little bit now based on last thursday night's chit chat  :

how do i pick stocks to trade (revised):

1. the company must be fundamentally sound
2. the chart must be showing my ideal set-up (the ostrich pattern) using my trading indicators (macd, rsi/sts)
3. the stock must have a current story i could ride on
4. the story must have a specific date by which time it will come into fruition