With market breadth expanding and the number of setups on my focus list doing the same, I felt it necessary to walk through how to go from 100 names on your watchlists into a wider list, and then ultimately to your focus list.
Hereβs How To Build A Concentrated Focus List:
Hereβs How To Build A Concentrated Focus List:
Throughout the rest of this thread, Iβll cover the following:
β’ Different types of wide watchlists to track & how to build them
β’ Using those WLs to curate a WIDE focus list
β’ Using the WIDE FL to create a FOCUS list for the upcoming session
β
β’ Different types of wide watchlists to track & how to build them
β’ Using those WLs to curate a WIDE focus list
β’ Using the WIDE FL to create a FOCUS list for the upcoming session
β
I have 4 WLs that I track on a day-to-day basis. They are the following:
1. Gap Ups
2. IPOs
3. Momentum Names (HTF, ShortStroke, or Meme Stocks)
4. Institutional Darlings
These 4 lists will house all of the names I find scanning.
1. Gap Ups
2. IPOs
3. Momentum Names (HTF, ShortStroke, or Meme Stocks)
4. Institutional Darlings
These 4 lists will house all of the names I find scanning.
Each of the watchlists above has key parameters a stock must hit to make it to that respective watchlist.
Iβve created a graphic below to help visualize this quickly:
Iβve created a graphic below to help visualize this quickly:
Once I have a good understanding of the criteria that I will look for to put names on their respective WLs, I will then create and start using scans for them.
You can use the exact criteria above to create 4 different scans to run on a daily and weekly basis.
You can use the exact criteria above to create 4 different scans to run on a daily and weekly basis.
From there, you can start adding names from each of those scans that look like they're building well to add to your watchlists.
But Greg, how do I learn to recognize what names are building out well?
Historical study & training your eye to spot winning charts.
But Greg, how do I learn to recognize what names are building out well?
Historical study & training your eye to spot winning charts.
I wrote an in-depth thread on how to build your eye like a professional chart technician here:
The main takeaway? STUDY WINNING CHARTS!
The main takeaway? STUDY WINNING CHARTS!
Letβs move on to the next piece of the puzzle, which is using those WLs to curate a WIDE focus list:
For me, a wide focus list can be anywhere from 10 to 50 stocks that are all setup or are in the process of setting up.
Many times, these are the names that have made big moves already without me, requiring me to force entries on pullbacks or on proper consolidations.
Many times, these are the names that have made big moves already without me, requiring me to force entries on pullbacks or on proper consolidations.
One thing to mention:
The health of the general market will determine how many names go onto your wide focus list.
For my system, a wide focus list > 30 names tells me we're in a risk on environment.
For reference, my Wide FL has 55 names currently.
The health of the general market will determine how many names go onto your wide focus list.
For my system, a wide focus list > 30 names tells me we're in a risk on environment.
For reference, my Wide FL has 55 names currently.
Throughout the trading session, I am constantly scanning and setting alerts on this list of names to stay in rhythm. I want to know if the majority of them are taking upside pivots, holding support on weakness, or if any of them begin to show cracks and break down.
The best traders in the game have an innate feel for the market's action, and learning how to stay in tune with your wide focus list will help you master this skillset.
Here's a case study of this process using $UBER:
Here's a case study of this process using $UBER:
$UBER below is a good example of a name that has had a strong move and now sits on my wide focus list.
It isn't buyable quite yet but is building out well after recent strength. I am tracking it daily.
$MGNI is an example of a name going from GU WL, to Wide, to Focus:
It isn't buyable quite yet but is building out well after recent strength. I am tracking it daily.
$MGNI is an example of a name going from GU WL, to Wide, to Focus:
Let's now talk about a Focus List.
A lot of traders get lost in their decision-making process because they have too many names on their focus list, not knowing which ones to prioritize.
This list should have at max 5-10 names, and they should all be actionable TOMORROW.
A lot of traders get lost in their decision-making process because they have too many names on their focus list, not knowing which ones to prioritize.
This list should have at max 5-10 names, and they should all be actionable TOMORROW.
This means they've displayed the edge you look to exploit in the market, & that they are showing proper risk/reward entry points in the upcoming session.
I've started calling my FL my Trade List, as it emphasizes that every idea on this list has to be tradeable the next session.
I've started calling my FL my Trade List, as it emphasizes that every idea on this list has to be tradeable the next session.
To properly prioritize a focus list, you want to focus on names that are showing the MOST POWERFUL EDGES.
So, as you're scanning through your regular WLs and then adding names to your wide FL, be deliberate about highlighting which names show the strongest action.
So, as you're scanning through your regular WLs and then adding names to your wide FL, be deliberate about highlighting which names show the strongest action.
I know in my system that a Gap Up on Highest Volume Ever with a Strong DCR is my top setup in the market.
This type of name will become MY MAIN FOCUS in the next session.
Here's an example:
This type of name will become MY MAIN FOCUS in the next session.
Here's an example:
Here's how $IOT showed up on my gappers scan, then showed the most powerful edge I trade in the market, and then was immediately placed on my focus list as the top idea into the next session:
The best part about the processes I've outlined above is that they are repeatable.
You get better at them the more times you run through this cycle, and ultimately finding/executing upon names that show up in your scans (something a lot of traders struggle to do).
You get better at them the more times you run through this cycle, and ultimately finding/executing upon names that show up in your scans (something a lot of traders struggle to do).
So, to build a focus list, follow these steps:
1. Track 3-5 Main Watchlists
2. Scan For Specific Criteria To Build WLs
3. Add Names From Scans to WLs
4. Highlight Strongest Names From Main WLs into Wide WL
5. Move Most Actionable 5-10 Ideas from Wide WL To Your Focus List
1. Track 3-5 Main Watchlists
2. Scan For Specific Criteria To Build WLs
3. Add Names From Scans to WLs
4. Highlight Strongest Names From Main WLs into Wide WL
5. Move Most Actionable 5-10 Ideas from Wide WL To Your Focus List
Remember: there are very successful traders out there who only trade the same core list of 5-10 focus names, and that's all they need to do to to extract $ out of the market on a consistent basis.
Follow a consistent FL process & you'll be able to execute when the time comes.
Follow a consistent FL process & you'll be able to execute when the time comes.
That was a long one but I hope you've found this thread helpful. If you did:
1. Follow me @GregDuncan_ for more valuable information on the stock market.
2. Like/Retweet the first tweet below if you learned something actionable:
1. Follow me @GregDuncan_ for more valuable information on the stock market.
2. Like/Retweet the first tweet below if you learned something actionable:
If you found this valuable, you'll definitely find value in my weekly newsletter.
Investing tools & insights catered towards high performance in 10 minutes or less.
Join 1300+ traders & investors looking to push the limits of their performance:
upsideunlimited.com
Investing tools & insights catered towards high performance in 10 minutes or less.
Join 1300+ traders & investors looking to push the limits of their performance:
upsideunlimited.com
Loading suggestions...