I’ve been wanting to see this sort of lesson from Nate for quite some time. I’m sure he has probably gone over it in webinars or video lessons, but other than Textbook Trading I’ve never seen him run scans, or more importantly hear his thoughts behind what tickers he picks and which he chooses to ignore.
Another solid “concept” for a chapter from Cam and Nate, they decided to highlight scans on three separate days, first was during a weak couple days in the SPY, second was during a trend back in the SPY then the last was when the SPY was back in a strong uptrend.
I know pretty well (its basically simple) how to scan for all the big gainers in play, but I was mostly interested in how Nate finds and decides on weaker stocks, dip buys etc. Not only did he show his Finviz scans, but he ran them real time, then gave GREAT in depth commentary on why or why not he was grabbing a stock for watch.
I think many traders especially new ones struggle with what stocks to watch. Hell I still suffer from what I call “trying to trade the phone book”. Nate nails it when he says “Less is more.” not only do you need to winnow down the stocks to a realistic number with your scans, you then need to chop it down further into a realistically manageable amount of tickers. IMHO unless you are some kind of freak, that needs to be 10-12 tops. And that is probably still to many.
Actually running the scans and the criteria was a limited in the benefit to me, I’ve been scanning and picking basically the same stocks at Nate has for the last few years. Not trying to make myself smart, but its pretty basic to look for huge gainers with volume. But what I really enjoyed and got out of this chapter was seeing him complete the process. I especially enjoyed and was interested in his doubling back to the last few days of charts and “moving tickers forward” if they were still potential plays.
I’m also going to force myself to more actively write my thoughts out on my scans. It was pretty cool to hear Nate think out loud and write and edit his thoughts. You could tell he was processing and building a plan real time. I think so many guys make lists of tickers (take the easy way out) it is a lot harder to take the ticker, then sell it to yourself and write a plan.
Chapter 8 – How to scan for stocks
-Scan for 10/13/2014
**- Good to watch the process
Weak close on the SPY
Less is more when scanning
Discussion of sympathy plays
Discussion of low floats/thin runners
-Green scan – big movers
Review prior days scans, good to build your own lists to double back to.
1M daily volume cutoff
Good comments on shorting low volume stocks
Useful to hear Nates thoughts in verbal form, helped me understand some of the scan notes a little better.
Line in sand – good explanation
After building scan list, look in the morning for confirmation of your thoughts.
Use previous day and pre market to build final list
-Scan for 10/23/2014
Looking for more runups to short vs beat stocks
Make sure list is manageable in size, if not winnow it down.
Scans are also good just to “get familiar” and “maintain your feel”
Good demonstration of rapid fire technical analysis.
Confirmation that simple tools are best, Finviz, Yahoo Finance, bigcharts etc
** – Good to write your thoughts out after finding charts.
-Scan for 10/27/2014
SPY very strong
Focus on overextended charts