I received an awesome question today via twitter that made me realize that my “Stalking” comment likely needed some further explanation. One of the key components to my Trading Strategy is to use Stalk Lists. I think for some of you, that term has given you pause on just what I mean so I’ll dive into it here.
A Stalk List is simply a list of stocks that I want to keep a close eye on as I feel that an entry (either Long or Short) is shaping up. I use Price Alerts to make the management of these lists easier – so in essence I am letting my computer “stalk” the stock for me.
You may have your own word in place of “stalk” but for me it hits the point home – I want to pay a higher level of attention to any stock on my lists. So how do I build these lists? Well the list is built through several methods:
1) Stock Scans using StockFetcher and Finviz.com
2) Several lists that I keep at all times of 40 stocks that I know really well (and trade frequently).
3) Stocks that I obtain by working the Excel spreadsheet provided on a blog by @daytrend
Because I am an opportunistic trader during the day, it is imperative to keep a simple yet effective stalk list system in place – and price alerts help me do that. I also keep my lists sorted by “$ Change Close” – you can sort with your trading system however bests works for you.
Now get to Stalking!