Very solid nitty gritty chapter here. And especially for those new to trading or new to actually preparing at night. One of the best overarching themes of Trader Checklist is spending the time and doing due diligence to locate the best trades. So many unsuccessful traders just show up at the market open with no plan or theme and just start putting on random trades. They then proceed to get frustrated and most likely chopped out of even good setups.
This chapter is an hour long insight into Sykes building his watchlist. Rating stocks for their potential and really thinking about how and why to trade them. Not only is this useful since you actually see him using the Trader Checklist real time. I think the greatest lesson is watching him work through his process of selection, at times agongizing over making a plan.
I truly and firmly believe in “No plan, no trade”. Especially as a newer or intermediate trader you have to “put in the reps” each night or early morning. Its boring, slow and at times annoying. But you will never find success or get to the next level without doing this work. NOBODY, no matter what they say on Twitter shows up at 9:29AM, makes a couple trades and calls it a day at 11AM WITHOUT doing the work of scanning and planning.
This chapter gives a good insight into Sykes putting in this effort each and every night. Great lesson on the process of the Trader Checklist, but even better lesson on work ethic. I’ve followed Sykes since about 2007 and he has literally NEVER missed a day building a watchlist in roughly 9 years.
Great overall chapter and for sure should be flagged for re-watching.
After hours STT
Building a watchlist
Discussion of penny stocks versus “real stocks” and price movement
Look at price/patterns/volume and catalyst not what the company is or does.
Percentage gainers – watchlist
-from today or the day before.
High volume can create choppiness
Good listening to though process through potential watches and trade plans.
Multiple timeframe breakdown – useful
TOPS – breakdown
Risk to reward discussion
Little bit of SEC digging
Lots of good Trader Checklist examples
Again a good use of the SSS is cutting down a watch list to a manageable number.
GRPN PEIX ALIM – earnings winners
PEIX basic technical analysis
Breakdown of earnings winners – checklist style
Breakdown of Supernovas – checklist
SPU trader checklist