Good traders focus on entries and exits, discipline, market analysis, risk management and position-sizing in executing a robust trading plan.
But interestingly, many of our subscribers often breathlessly ask,
“What’s on your watchlist”, like THAT’S the holy grail.
Of course, we want to start with trading instruments with good volume, sufficient average price movement, appropriate volatility levels for a given option strategy, and a couple other criteria. This leads to a good GENERAL watch list.
But over time we’ve found specific symbols are better trading vehicles for certain purposes versus others. For example, some are better candidates for:
For example, EBAY is often choppy intraday with smaller timeframes, but in higher timeframes it’s a solid performer for intraweek swing trades. It’s on our short to medium-term swing trade list. Or INTC often stalls out and is range-bound for long periods, making it a perpetual member of our credit spread watchlist.
At PTL we share our regularly updated Sweet Spot Equity list featuring stock and ETF symbols with low share prices, sufficient (but not insane) price movement, and good average trading volume. These are subdivided for intraday-only, swing-trade-only, or either style. We post long and short symbols that represent good candidates for buying puts and calls. Another for selling vertical credit spreads.
So, the next time you think about your watchlist or updating IT (SINGULAR), consider how you trade, and create specific watchlists (PLURAL) and monitor THEM. They’ll match up better with what you’re doing.