huarenbbs.com
BMRN, CVD, PPDI

http://www.fulltimetrader.com/traderwatchlist.shtml


Trading Watchlist
I post my watchlist at huarenbbs.com. It is posted nightly for next day's trading.
Focus list
The watchlist consists of two sections, the Focus list for my best trading ideas, and other stocks worth watching.
There are usually 2-5 stocks on the Focus list. A typical Focus stock is in a strong industry group, gapped up to historical high today, closed near the high of the day, and had highly important news.
How to trade
I scan market news before open. If any stock on the watchlist releases news, I will pay extra attention to the stock.
I only consider stocks that are positive on the day. There are three major entry points:
Opening range breakout.
Stock goes from negative to positive.
Stock breaks previous day's high
Intraday trends between 9:45am and 11:00am tend to be more consistent. There are more false breakouts before 9:45am.
Strong momentum often lasts for a short time only. I use measured move to calculate intraday targets and take profit. If a stock exceeds the targets and keeps rising, it may be a good candidate for swing trading.


money management

Trading is all about trying not to lose. If I can manage the losses, the profit will take care of itself.
The first trade of the day is very important. Whether it's a profit or loss is an indicator of whether the day will be profitable. Be selective on the first trade, and the position size can be smaller than usual.
If the first trade is a loss, be extra careful on the next trades, if two consecutive trades are losses. Stop trading for the day and take a rest. There are plenty of opportunities tomorrow.
Open one or two positions only at the same time. Focus on the best one/two ideas.
If a position works, concentrate on that position. "If a position goes in your favor, you don't care how big the position gets." (Soros)
Never allow a profitable position to turn into a loss. As soon as the position moves in my favor. I'll move my stop to breakeven.
Never average down.
Never hold a loser overnight.
If the last two or three days are losing days, cut position size at least in half, and make one trade a day only, until things improve.
Let me end with a few quotes on risk control and money management:
"If you have an approach that makes money, then money management can make the difference between success and failure... ... I try to be conservative in my risk management. I want to make sure I'll be around to play tomorrow. Risk control is essential." - Monroe Trout
"If you personalize losses, you can't trade." - Bruce Kovner
"The best traders have no ego. You have to swallow your pride and get out of the losses." - Tom Baldwin
"Never risk more than 1% of your total equity in any one trade. By risking 1%, I am indifferent to any individual trade. Keeping your risk small and constant is absolutely critical." - Larry Hite.

我的一个交易日
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我的一个正常的交易日是这样的。
交易日从晚上10点以后开始。我在比较晚的时候容易集中注意力，先看看指数的日线图。然后用TC2000选股，有特别感兴趣的股票还会去Yahoo Finance看看新闻和简单的基本面信息。一般会看200-500张图，TC的好处是可以很快看图，也是我几年来一直使用的主要原因。一般在12点左右确定watchlist，再用5-10分钟的时间离开屏幕沉思，决定watchlist的股票顺序。这一步很重要。然后上论坛贴出watchlist. 完成研究，睡觉。
9:00am 开始看股市，先看重要的新闻，再看有那些股票会高开。我以做晚上watchlist上的股票为主，所以对这些股票不是很重视。然后会看watchlist上的股票有没有任何新闻。股票在新高附近经常会有消息，所以时不时就有挺重要的新闻。这一步挺重要的。
9:30am 开盘。开盘后5分钟左右是我的方法的重要进点之一。主要的想法还是抓住强股。不过这时假动作较多，仓位不能太大。
9:45-10:10am 是最重要的进点。opening range breakout (ORB) 通常发生在这一段时间。10点到11点的趋势也比较稳定，可以上正常的仓位，如果开盘后买进的股票在这这里ORB，可以加比较大的仓位。
11:00-11:30am 是结束DT仓位的时间，很多股票在11点左右完成量度涨幅，是出货的好时候。
11:30am-1:00pm 尽量不操作，找时间吃午饭。
1:00-2:30pm 在很适合操作的市场里是另外一个进点。可以追突破的强股争取抓住下午的趋势。这几年的市场不是很强，很少在下午进货。
交易日里我一直会注意已有的仓位，如果跌破13EMA会出货。
3:30-4:00pm 如果持有的股票收在最高点附近，我会持有一部分或全部仓位过夜。如果股票没有涨太多，会出一部分，如果跌的话会出清。我不拿亏损的仓位过夜。
4:00-9:30pm 休息，晚饭，family time.
9:30-10:00pm 总结回顾一天的操作。
在不利于操作的日子里，我只看盘，而且经常只是三心二意的看盘。券商(IB)的网站和软件都不打开。
交易日总的来说是单调和平静的，这有利于我在市场上仔细观察，随机应变。
为什么能耐住这样的寂寞？两个字: 喜欢。股市操作是最刺激好玩的游戏。自己和自己对战，没有比这更富有挑战性的了。每一次成功的战斗都让我回味无穷。最终胜利了可以拥有完全的自由，失败了也不过是输给了自己，有什么要紧呢？


Strategy

I buy stocks that made new high recently on strong momentum, went through tight consolidation, and are breaking out again.
Swing TradingRules for buys:
1. On Day 1 (within the previous 5 trading days), the stock must do all of the following:
Made a 52 week high, historical high is even better. Day 1's range was the largest in the previous 10 trading days. A gap up is even better. The stock closed near its high of the day. stock released news that had significant impact on future earnings.
2. Stock consolidated after Day 1, never breaking below the low of Day 1.
3. Today the stock must do all of the following:
Makes a new high, the first new high after consolidation. Today's range must be larger than all the consolidation days. Today's close must be near its high of the day.
4. Buy tomorrow on an opening range breakout (ORB) to the upside.
5. The stop is at 5% loss.
Day TradingRules for buys:
1. Today the stock did all of the following:
Made a 52 week high, historical high is even better. Today's range was the largest in the previous 10 trading days. A gap up is even better.
2. Buy tomorrow on an opening range breakout (ORB) to the upside.
3. The initial stop is the low of the opening range. I use the 13 bar EMA on a 5 minute chart as trailing stop.
If a stock never breaks the trailing stop and close near the high of the day, I hold at least half of the position overnight.
Opening range breakout (ORB)Stocks form an opening range (OR) in the first 15-30 minutes of trading. Valid ORBs often meet one or more of the following conditions:
ORB occurs between 9:50am and 10:10am. Low volume in the OR and high volume on the breakout. OR is narrow and flat.
In my main strategies, the stock is trading at a 52 week high, it has broken out again after at least an intraday consolidation on Day 1, The stock should be in a strong industry group and it just released positive news. I have both the technical and fundamental sides working for me in the immediate short term, and the path of least resistance after the ORB is likely to be up.