The Key to Trade Selection

There’s always a move you’re missing.  It might be in the overall market (ETF’s), or it might be a sector or individual stock that’s making the move of the day.

As traders, we all dream of being involved in those names on a regular basis.  And while you can focus your entire day on monitoring the news and the stocks which are jumping on headlines (some do and are highly successful), the fact of the matter is that those plays might not be best-suited for you.  And that’s perfectly fine.

You’re unique, and your approach should be as well.  Some traders are tuned-in enough to dedicate their attention to the headline stocks, but many are not.  It’s important to accept that and go the best way for you.

Choose Wisely

In my experience, the important aspect of trade selection is founded in the ability to narrow a list of trading prospects to just a few actual candidates.  The aim is to get your watchlist down to a select few which really “fit” you best.

Here are a few things to consider when doing this…

* Are there specific setups or chart patterns which have performed best for you in the past?

* What’s your preferred price range or volume minimum?

* Do you have a directional bias?

* Which type of play do you prefer… breakouts, reversals, pullbacks?

Hopefully you’re seeing some ways to start reducing that list of the cleanest 20 patterns and derive from it an actual trading list.  This way, you can ignore what’s left and stick with only the ones which are most suitable for your style of trading.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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