Ep 59 – How to Build a fool-proof Watchlist
Today, the Steady Trade Podcast presents the ninth installment of a new series, where hosts Tim Bohen and Stephen Johnson share some of their favorite trading resources. Today, you’ll learn how to build a fool-proof watchlist.
Over the past several episodes, they’ve featured clips from the Tim Sykes video Trader Checklist, complete with commentary and discussion. This episode continues the progressive discussion, digging deep into applying Trader Checklist principles to your stock choices.
Be sure to check out this episode on YouTube to see the accompanying video!
About Trader Checklist
Trader Checklist is a video by Tim Sykes that features 14 chapters of invaluable trading information. It’s available for free online, so don’t miss out.
To enter, first watch Trader Checklist. Then, at the end of this multi-part episode, you’ll be invited to take part in a quiz based on the Trader Checklist principles. Stay tuned!
Putting Trader Checklist principles to work: The clips featured in this episode focus on the nitty gritty of watchlists.
As Tim Bohen admits, creating a watchlist can be boring, but they’re vital to finding good stocks to trade. It’s a skill that flip flop-wearing Stephen could use some work on, because as Tim accuses, “Your feet are just as soft as your discipline.”
Clip: It’s 9:30 pm. Do you know where your watchlist is? Here, Tim Sykes shows you what he does in the post-market hours by showing you the process of making a watchlist, which he shares daily with his students.
You’ll see how he doesn’t just look at stocks as potential buys, but as sources of information about the market at large.
The Steady Trade take: Both Tim and Stephen appreciate how he does this work even if he’s not trading, so that he can share this knowledge with his students. They also talk about the benefits of adopting the practice of watchlist-making for yourself.
Clip: Tim Sykes shares a clip from Business Insider claiming that this is the most boring market ever. Tim disagrees — he thrives on seeing opportunities where others don’t. And his market niche is on fire right now!
The Steady Trade take: As Tim and Stephen concur, with microcap stocks, things can go crazy during so-called “slow” times.
They share their thoughts on how penny stocks can buck bigger market trends, so you shouldn’t just depend on what the media tells you. Look at what is happening in the market!
Clip: Tim Sykes shares a little bit more about his watchlist-making process. He shows how rather than look at individual stocks, he looks at potential plays and patterns.
From there, he groups stocks he’s considering and further narrows down the contenders by researching things like earnings winners, spikes, and catalysts.
The Steady Trade take: Tim and Stephen explain the importance of narrowing down your choices, and explain how resources like Trader Checklist and platforms like StocksToTrade can help you refine this process.
Clip: Tim Sykes talks percent gainers and what else entices him to trade a stock or add it to his watchlist. He explains the advantages of writing down your thoughts and thinking about the past performance of a stock.
The Steady Trade take: Both Tim and Stephen agree: they like seeing “how the sausage gets made”. This clip gives you a real-life view of how the research and thought process go when choosing stocks.
Clip: Even if a stock is spiking, it’s not enough for Tim Sykes if it doesn’t have a perfect pattern or a great catalyst. In these cases, he’d rather watch a stock rather than jump in.
The Steady Trade take: As Tim Bohen wisely says, “He who chases many rabbits catches none.” Basically, getting stocks off your watchlist is a good thing, because it means less stocks to monitor.
Tim and Stephen discuss why it can be best to wait for better volume and patterns, and why you should consider the market as it is right now rather than trying to project your hopes on it.
Got a pressing question?
Do you have questions for Tim and Stephen about the episode? Visit the “submit your audio” portion of the website to ask us anything.
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