The Distillation Process

Spent a fair amount of time scrubbing the ol’ watchlists this weekend. The important thing about screening stocks is to have a rigorous distillation process. There’s a whole world of opportunity out there. You want to have your very best ideas in front of you on any given day. For me that means constantly revising what I call my focus watchlist, and then I have numerous secondary lists which I browse more casually.

Secondary watch includes setups that remain favorable, but are perhaps not quite on the verge; they need more time. On the other hand, my focus watchlist has the charts I’m salivating over. Both types of watchlists are edited as individual chart circumstances dictate, with my primary list getting the most frequent attention.

If the plan was to buy, and a stock opens weak on substantial volume, it will not last very long on my main screen. Later on, I will see it on an ancillary panel and if it closes poorly, I might delete it from there too. Thus effectively eliminating the company from my stock universe.  The object then is to replenish supply by promoting from lesser watchlists, consulting scans, and by gathering peer input.

In this manner, I am perpetually recycling charts and keeping fresh opportunities in view, with every intent to pounce when the timing seems right.  I pledge allegiance to no one, and seek to remain ambivalent about the companies I trade.

My new practice this week is to begin linking up dynamic charts here on the blog. The old ones were static and did not update. That was nice for determining the price of a stock when posted, but let’s face it : nobody really cares. This new method will make back-surfing worthwhile, as you’ll now be able to see the setups evolve (or devolve, as the case may be). Value-added content is worth striving for, and this is an attempt at that.

Looking towards the open on Monday, I don’t have much in terms of long setups. Futures are however moderately positive at the present time. Let’s watch the broader market for clues as to the ferocity of our current pullback.




In making speculation a business, one automatically keeps an eye on all markets for the big opportunities. – Jesse Livermore

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2 Responses to The Distillation Process

  1. Pingback: Detailing Watchlist Function |

  2. Pingback: The Discovery Process | ChartSeer

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