How to Develop a Powerful Watch-List | Podcast Episode #13

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Learn to trade, stocks successfully, learn to profit consistently. I’m Ryan Mallory. And on my weekly podcast, I’m going to teach you the in and out of a complex ever-changing stock market, you will learn to trade better trait, smarter and profit figure.

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Now let’s go trade, Hello, everyone. This is Ryan Mallory with the SharePlanner’s, swing trading podcast with another episode here for you today. And this one’s going to be about developing a powerful and winning.

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Watch list of stocks that you can trade off of every day and be successful at it. So I get a lot of questions about Watch list. How do I create them? How do I develop them, how do I manage them? And so, in this podcast, I’m going to try and tackle some of those questions here for you.

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Hopefully make the process of developing stocks that you want to watch and, and trade a much simpler and realistic way of approaching the stock market. So, creating a list of stocks to watch is not really that complicated and it’s actually at least for me.

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It is pretty straightforward. I manage my list of stocks that I watch every day. I am subtracting and adding to them on a daily basis. If you’ve been following me on, share planner for any length of time. I actually post these on there every week. So yeah. They’re, they’re changing day by day.

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But at least, you know, at least once a week for the public you get a snapshot of what they look like. Believe it or not, keeping it managing a well-put-together. Watch list is not all that hard. And what I’m going to do is outline for simple ways that you can take to creating and optimizing your list of stocks to watch so that it benefits you the most So here here’s the deal every day, the market is changing rapidly up one day down the next, big move higher, Big Move lower and in the midst of all that your watchlist changes to what was a valid trade setup.

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Possibly yesterday is completely off the radar today and that means your list of stocks that you are watching has to be actively managed. Otherwise it will go quickly, stale, and content and advantage that it provides you as a Trader, the stocks that if you’re not Managing it, the stocks that are on that list aren’t going to be relevant very long.

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So without spoiling the mystery for you, let’s go ahead and get to my first point here. Actively managing your list of stocks to watch based on your trading style. This is my first point. What kind of trade are you are will largely determine how often you need to manage your watchlist.

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If you are a day trader, your watchlist requires a more active management, and screening throughout the trading session for me, as a swing Trader. I managed my list every day while keeping an open eye to the new At ease, frankly, if you’re a swing Trader to you don’t have to do the latter as a swing Trader, but definitely doesn’t hurt and can only help you.

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You don’t have to maintain the kind of frequency that I do. But like I said, it does help day trading, though is extremely Dynamic and ever-changing. So your watch list is probably only good for about an hour at best. Sometimes because you are looking to capitalize on Sudden momentum swings and notable changes in the price action of stocks that suddenly occurs.

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So you always have to be updated. Ting it for new trading opportunities that arise as well. And for for day Traders, there’s actually you know software out there that can help you with that. So if you’re an investor, you don’t need to manage your watchlist. Every day, you are looking for price points, where your entry would represent a good value to you because you are engaging and fundamental analysis.

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You are looking to translate that into a reasonable price point where you are able to buy a stock at a cheap price relative to its fundamental value. As a result having to update your watch list of stocks on a daily basis. Really isn’t necessary as the fundamentals or long-term thesis for why you are looking to buy stock from a long-term investment.

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Standpoint doesn’t change now for me as a swing Trader through and through my list of stocks that I am following, does change on a daily basis. As I have already said, don’t get me wrong. There are plenty of carryover trading opportunities from one day to the next Ha, there are even stocks on my list that have been on there.

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For months Citrix systems was a chart pattern that I had one point on my watch list for like three or four months and it tends to come back, you know, every once in a while as well, but it didn’t change on a daily basis. It wasn’t there one day and gone the next. So yes, as a swing Trader there, Are times where stocks will stay there for a few months and only a few days.

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What I am trying to get to with this is that as a swing Trader. The list of stocks that I am following is constantly being added and subtracted from regularly, not as frequent as a day trader, who needs to update his list throughout the trading day, but much more than an investor who only periodically needs to update his So know how active you need to be with your list of stocks to watch so that it doesn’t grow still with old companies, that have no relevancy to your current trading conditions.

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My second point, is this keep at least two separate lists of stocks to watch. You may already have more than to watch list the stocks that you are looking to buy or short. But for me personally, I keep two Dynamic lists. I have a list of stocks. I’m looking at buying and a list of stocks that I am considering shorting these two are separate from each other and just because one is on the by list doesn’t mean it can’t be on the short list.

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Sometimes a stock can be in a tight pattern of consolidation and could very easily break out. Out to the upside or even break down. I also keep handy. A list of stocks that are in the S&P 500 that I can sort through as well as a list of the stocks.

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In the Russell 1000, this gives me two different lists of large caps and small caps, depending on the market conditions so that I can flip through these charts to see what is actually moving. I’ll sort the list of Stocks by volume buzz on my TC 2000 charting software, which shows the stocks that are showing an above average amount of volume flowing in The timeframe that I’m evaluating this stock chart in.

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So for the S&P 500 I’ll flip through the first 50 or 75 stocks or so. And for the Russell 1000, I will look at the first 100. I’ll do this every day actually, and if I find any that I like, I’ll add them to my respective buying or shorting watch list that I am actively maintaining.

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And the reason why I only look at the first 50 or 75 of the S&P 500, and the first 100 of the Russell is really, I’m looking for stocks that are showing a lot of volume, but have a tradable. Turn to him. I really when I’m going through these Tarts, I don’t want to go focus in on the favorable trading patterns, but no volume associated with them on the booth.

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So that’s why I sort them by the volume buzz. And then, I only look at about the first 10 to 20% of stocks. If you are an investor there is a good chance that you are not going to be interested in keeping a list of stocks to watch for the purpose of shorting because most stocks don’t make for great long-term shorting.

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I mean there’s there’s some like Crocs cro X that have that has been pretty good and actually knew a person in the SharePlanner Trading Block that is up until recently shorting Crocs for like a very very long time and was very profitable with it. But you can still as an investor keep multiple watch lists.

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One could be based purely on fundamental value and another could be a list of stocks to avoid or stocks that are following a specific investment strategy of yours an essence, you can have multiple lists of each investment strategy that you employ. But for Traders of all types assuming that you are shorted, or into shorting and some are, and that’s okay, too.

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I would encourage you to keep two separate list of stocks, one for shorting and one for buying Point number three, manage, how many stocks are on your list that you are going to watch, whatever you do avoid adding every stock that tickles your fancy to the list of stocks that you were going to trade from.

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It can be easy to get turned on by every setup. You fine avoid that Temptation. When you go through your scans initially, look for stocks that have the potential and the next week to being in play. And of course I’m speaking to swing Traders here. Day traders, of course, is a much tighter timeframe and investors.

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It’s a much wider time frame. There is this ongoing fear, you see with traders that if they don’t add a certain stock to their watch list, that they’ll miss that trade and regret it later. First off trading is filled with regrets daily, regrets, even you have to get past that you cannot take every trade out there and you cannot profit from every stock that happens to move.

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If your sole basis, for adding a stock to your portfolio, is out of the fear that it might do something without you. Knowing about it, then skip it and move on to the next stock that you You are scanning for inclusion to your watch list. The other issue is having too many stocks on the watch list, I have literally seen traders that are tracking two to three hundred stocks at a time.

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But why I’ve been seriously? What possible motivation on? God’s green earth. Do you have for tracking that many stuck simultaneously on a daily basis? I look over 500 to 1000 charts. I am so intimately familiar with most of these charts that I can draw their chart patterns from memory but Want to track 300 stock to my watch this when the market is making a move that I like, and I want to find the best trade setup for me on.

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I don’t go sort through hundreds of place for me to find one instead. I keep about 70 to 80 stocks Max, and each of my to watch lists, that means that the market is bullish on the day. I am sorting through about 70ish or so stocks to find the one that works for me and I can do that within about two to three minutes.

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I want to be able to respond quickly to the market and not have Have to figure out, you know, out of 500 stocks. I’m tracking which one works because then there’s a huge trimming down process to get to that one stock that’s going to work. And by capping, my list of stocks to watch, I am making sure that I am not throwing in any stragglers that don’t really deserve or has a chance to be in there to begin with.

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Also don’t feel that you have to have that many stocks in your watchlist. Some people may only want to track 10 to 15 stocks at a time and a Raging Bull Market. I’m they only have 30 or 40 stocks that qualify as bearish setups and vice versa and a bear Market because there simply isn’t that much to choose from when the market becomes extremely biased in One Direction.

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The point is don’t stuff your watchlist with hundreds of stocks it is overkill and counterproductive. Now, how do I? And this is my last Point, how do I find the stocks to add to my watch list and how can you do that? And I’m glad you asked I go through a lot of charts at night at least 500.

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Or so as previously mentioned for most swing Traders out there, you don’t need to do this overnight. I’m obsessed with it. So it’s no skin off my back. I think, if you spend at least one night a week, like Sunday night, and use it as a primer, for getting ready for the week ahead, you’ll be amazed at how solid your watch list will be.

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I go through a very end up scan every Friday night. It’s quite the night life. Let me tell you, my mind is still fresh from the trading week and the experience that has created as well as my feel for the market. So I use it to pin a fit myself to go through the massive search of stocks.

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And it gets me prepared for the week ahead and allows me to enjoy my weekend doing that. I’m already prepared for the trading week ahead, but when it comes to the skin itself, I actually don’t have a special recipe for what I’m looking for. I keep my scanning parameters to a minimum and essentially you use the Scandal without any stocks.

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That I would not trade under any circumstances. That means stuff like stocks with low volume stocks. In the single digits starts with an extremely low beta. Because, hey, we all need some volatility in our trading life. And to do this, I use the wardens TC 2000, their chart, their charting software is absolutely fantastic.

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And on my website, there are ads that will point you to their website and everything else, which I encourage you to check out and I have been using it since 2007. The software is very easy to learn and most importantly, I can flip through the charts at breathtaking speed and that’s probably the The most important thing.

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I don’t want to have to wait for the charts to pop up, you know, and take 15-20 seconds to look. These things are coming in at milliseconds and that’s, that’s probably beyond anything else. What I’m most appreciative for when it comes to their software? Using this software, I get a lot of stocks to check out and I go through them all and find the ones to focus on for the next week, I carry them into my existing list of stocks and I go through the entire list which I’m usually have about 130 to 150 stocks in at this point.

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And then that’s where the cut down process starts. I start to dwindle it down further to about 70 to 80 stocks at. I’ll follow on each watch list. So, let’s get to some final thoughts here. When it comes to developing a Full list of stocks to watch.

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Trading is a challenging career hobby depending on how you classify it for yourself. For me it’s a career being prepared as a huge part of it and even more so avoiding habits that make reacting to a dynamic and ever-changing Market more difficult. Keep it simple. Keep your watchlist short and to the point I would encourage you as well, to consider joining the share punters Blast Zone and trade with me each day as I provide daily watch list of stocks.

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But I’m going to trade both long and short, I’ll guide you through the stock market’s complexities as well, and make sure. Sure that you understand what it takes to not only be self-sufficient in the stock market, but to learn how I’m trading and how I’m managing those positions that come from my watch list and take them from the watchlist to becoming a profitable trade.

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So I hope to see you there. Thanks for listening to this week’s podcast of Swing trading with Ryan Mallory. I’d like to encourage you to join me in the SharePlanner Trading Block, where I navigate the financial markets every day with Traders from around the world with your membership.

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Get a 7 day trial access to my trading room and text and email alerts. So go ahead and sign up by going to shareplanner.com, backslash Trading Block, that’s www.shareplanner.com/trading-block, backslash Trading Block.

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And follow me at SharePlanner on Twitter, and on SharePlanner’s, Facebook page, where I provide unique market, and trading ideas every day. If you have any questions, please feel free to email me ryan@shareplanner.com, all the best to you and God bless.