Creating a database
Let me warn you that the fruits of your success will be in direct ratio to the honesty and sincerity of your own effort in keeping your own records, doing your own thinking, and reaching your own conclusions.
You cannot wisely read a book on "How to keep fit" and leave the physical exercise to another. Nor can you delegate to another the task of keeping your records.
How to Trade In Stocks by Jesse Livermore
A reader has asked how to generate trading ideas on regular basis.
On a regular basis I maintain few databases from which most of my trading ideas come.
1 Earnings database
This is a database of top 2% earning performer every quarter. This is primarily my source of finding trades which have potential to make 100% plus kind of moves.
2 Sales database
Similar to earnings database this contains top 2% sales performer with quarterly sales over 10 million. I have found that most of the super performer for year, stock which make 300% kind of moves or 10 baggers come from the above two list.
3 Momentum database
This is a database of top 2% stock selected based on their price momentum. This list contains many from the earning and sales list but also many speculative stocks or special situations where the stock price is going up for reason not directly attributable to either earnings or sales.
4 Virgin Stock database
This is a list of stocks which have never rallied beyond their IPO price. You know virgins are always in demand in all culture. When these stocks start a move probability of them having a smooth move is very high. They are the kind of below the radar play no one on the street is tracking and make great moves. I always find ideas amongst these group when nothing is working.
5 Breakout Long
Stocks which had recent breakouts from my above databases.
6 Breakout short
Mostly large cap stocks with possibility of breaking down. I added WAG to this list yesterday. Shorts often work out much later after the kind of high volume action seen on WAG. Big fuck ups are always easy to trade on short side plus you don't have problem of stock availability.
7 Market learning/strategies database
This is an extensive database of all strategies I have developed using data mining. It includes every strategy I have researched at some time. Lessons learned from hundreds of books on trading or market. There are unique insights from sector wise learning. Certain sector are best bought at 52 week low while some at 52 week high. What is normally the process of market turns, which sectors lead, which lag, which have a potential for large move.This is a continuously updated documents with insights updated and added frequently. I refer to this document daily.
The market has ever changing cycles but some things work again and again.
You cannot wisely read a book on "How to keep fit" and leave the physical exercise to another. Nor can you delegate to another the task of keeping your records.
How to Trade In Stocks by Jesse Livermore
A reader has asked how to generate trading ideas on regular basis.
On a regular basis I maintain few databases from which most of my trading ideas come.
1 Earnings database
This is a database of top 2% earning performer every quarter. This is primarily my source of finding trades which have potential to make 100% plus kind of moves.
2 Sales database
Similar to earnings database this contains top 2% sales performer with quarterly sales over 10 million. I have found that most of the super performer for year, stock which make 300% kind of moves or 10 baggers come from the above two list.
3 Momentum database
This is a database of top 2% stock selected based on their price momentum. This list contains many from the earning and sales list but also many speculative stocks or special situations where the stock price is going up for reason not directly attributable to either earnings or sales.
4 Virgin Stock database
This is a list of stocks which have never rallied beyond their IPO price. You know virgins are always in demand in all culture. When these stocks start a move probability of them having a smooth move is very high. They are the kind of below the radar play no one on the street is tracking and make great moves. I always find ideas amongst these group when nothing is working.
5 Breakout Long
Stocks which had recent breakouts from my above databases.
6 Breakout short
Mostly large cap stocks with possibility of breaking down. I added WAG to this list yesterday. Shorts often work out much later after the kind of high volume action seen on WAG. Big fuck ups are always easy to trade on short side plus you don't have problem of stock availability.
7 Market learning/strategies database
This is an extensive database of all strategies I have developed using data mining. It includes every strategy I have researched at some time. Lessons learned from hundreds of books on trading or market. There are unique insights from sector wise learning. Certain sector are best bought at 52 week low while some at 52 week high. What is normally the process of market turns, which sectors lead, which lag, which have a potential for large move.This is a continuously updated documents with insights updated and added frequently. I refer to this document daily.
The market has ever changing cycles but some things work again and again.
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