Trading Watchlist

I post my watchlist at meigu8.com. It is posted nightly for next day's trading.

Focus list

The watchlist consists of two sections, the Focus list for my best trading ideas, and other stocks worth watching.

There are usually 2-5 stocks on the Focus list. A typical Focus stock is in a strong industry group, gapped up to historical high today, closed near the high of the day, and had highly important news.

How to trade

I scan market news before open. If any stock on the watchlist releases news, I will pay extra attention to the stock.

I only consider stocks that are positive on the day. There are three major entry points:

• Opening range breakout.
• Stock goes from negative to positive.
• Stock breaks previous day's high

Intraday trends between 9:45am and 11:00am tend to be more consistent. There are more false breakouts before 9:45am.

Strong momentum often lasts for a short time only. I use measured move to calculate intraday targets and take profit. If a stock exceeds the targets and keeps rising, it may be a good candidate for swing trading.